The salesperson is offering you an extended car warranty at $1,500-3,000? Before accepting (or declining), understand exactly what it covers, what it doesn't cover, and when it is really worth the investment.
1. Difference from the LPC warranty
The LPC warranty is automatic and free depending on the age of the vehicle. The additional warranty is paid and optional: it is an insurance product.
| Aspect | LPC warranty | Additional warranty |
|---|---|---|
| Cost | Free (included) | $1,000 - $3,500 |
| Length | 1 to 6 months depending on category | 12 to 60 months |
| Coverage | General good working order | Specific list (varies) |
| Deductible | None | $0 to $250/claim |
| Cancellable | No (legal) | Yes (generally) |
2. What is typically covered
- Engine (block, pistons, crankshaft).
- Transmission (automatic or manual).
- Cooling system.
- Steering and suspension.
- Critical electrical system.
- Depending on the plan: brakes, air conditioning, electronics.
3. What is NOT covered (read carefully)
- Normal wear: tires, brakes, battery, wiper blades.
- Cosmetics: paint, interior.
- Defects existing at the time of purchase (except sudden failure).
- Modifications to the vehicle.
- Damage caused by a lack of maintenance (if you can't prove your oil changes).
4. When it's worth it
👍 Often yes for:
- LPC category C or D vehicle (little or no legal warranty).
- European vehicle (BMW, Audi, Mercedes, VW): costly repairs.
- High-mileage vehicle (130,000+ km) with an automatic transmission.
- Buyer who can't absorb $3,000-5,000 of unexpected repairs.
👎 Often no for:
- Toyota, Honda, Lexus with under 100,000 km: high reliability.
- Recent vehicle (under 3 years old) still under the manufacturer's warranty.
- Buyer with an emergency fund for repairs.
- Warranty offered with a high deductible ($250+) and significant exclusions.
5. How to evaluate a warranty offer
- Read the exclusions: if the list is long or vague, that's a warning sign.
- Check the third-party warrantor: Sym-Tech, GWC, AutoTrust, etc. Check the reviews and financial strength.
- Compare with an emergency fund: $2,000 set aside = covers most common breakdowns.
- Negotiate the price: the additional warranty is often negotiable (-30 to -50%).
- Cooling-off period: most can be cancelled within the first 30 days at no charge.
6. Our approach at BonAuto
We present our additional warranty offers transparently, with exclusions and detailed costs. We don't push the sale: it's your informed choice. For LPC category A or B vehicles with low mileage, we often recommend skipping it.