Should You Recommend Extended Car Warranties to Clients in 2025?

As a dealership, your clients look to you for guidance on how to protect one of their biggest investments: their vehicle. In today’s market, repair costs are at record highs, and most manufacturer warranties expire within 3 years or 60,000 km. That’s where extended car warranties come in. Offering them as part of your dealership’s services can provide real value to your customers while strengthening trust in the sales process.

Why Extended Car Warranties Are More Important Than Ever

Vehicles are staying on the road longer, with many owners driving well beyond the original warranty period. Once that coverage ends, even a single unexpected repair can cost thousands of dollars. By highlighting extended warranty options, dealerships can help clients prepare for the realities of long-term vehicle ownership.

Key Benefits for Customers

1. Peace of Mind After the Manufacturer Warranty Ends

Clients don’t want to be blindsided by repair bills. Extended warranties give them confidence knowing that parts, labour, and service are covered beyond the standard manufacturer protection.

2. Flexible and Customizable Coverage

Unlike factory warranties, extended service plans are highly adaptable. Dealers can present coverage options that match a customer’s budget, driving habits, and vehicle type—whether it’s city commuting or long-distance travel.

3. Added Perks That Build Value

Beyond covering repairs, many extended warranties include:

• 24/7 roadside assistance
• Rental car reimbursement
• Towing coverage
• Trip interruption protection

These benefits often surprise customers and position dealerships as partners in making ownership stress-free.

4. Boosting Resale Value

Because most extended warranties are transferable, they can increase a vehicle’s resale price. Dealers can use this as an additional selling point—showing clients how today’s warranty choice adds value down the line.

How Dealerships Benefit

Extended warranties don’t just protect the customer—they also enhance the dealership experience. By offering tailored coverage, you:

• Build customer loyalty and repeat business
• Differentiate your dealership from competitors
• Create value-driven upsell opportunities that clients actually appreciate

Final Takeaway

For dealerships in 2025, extended car warranties are more than an add-on—they’re a way to build trust, increase customer satisfaction, and future-proof your sales process. When presented as part of a well-rounded financing or vehicle purchase package, they give clients confidence and provide your dealership with a long-term relationship advantage.

Extended car warranty programs are available through financing partners such as Credi Canada Lending Corporation.