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The whole story, as text
“The warranty is included in the payment.” What it costs by the end.
“The warranty is included in the payment.” A $2,500 service contract, added to a 72-month loan at 8.9%. What does the warranty cost you by the end of the loan?
The answer
$3,236. $45 a month for 72 months. $736 of it is interest on the warranty.
Why
Anything folded into the loan is financed at the loan's rate for the loan's full term. $736 interest, $2,500 the warranty itself. “Included in the payment” means financed, not free. Ask three things: The price on its own. Whether you can buy it later. Whether it can be cancelled, and how the refund is worked out.
One move
Buy it separately, or not at all. Financed: $45 a month, $3,236 paid in all. Paid today: $2,500 once, $0 interest. Same warranty, $736 less. Whether the warranty is worth $2,500 is a separate question. This only shows what financing it costs.
The add-on cost tool handles several add-ons at once, with the loan’s own numbers.
Written and reviewed by Riverbend Crossroads Digital LLC, Friday, October 2, 2026. Figures from the Show Real Cost engine, computed exactly and shown to the cent. Educational, not advice; your lender's disclosures are the authoritative figures. How we calculate · Corrections.