A service contract sold with a car is often added to the loan, which means its price is not paid up front. It is carried into the loan balance, and whatever interest the loan charges on that balance applies to the contract too. Few buyers look at that piece separately. The contract is then repaid over the life of the loan, which is often longer than the contract term itself, so the total you pay can end up well above the price the seller first named. Before you sign, get the contract price, the financed total, and the repayment schedule written down side by side.
Ask for the cash price and the financed total
Ask the seller to show the contract price as its own line, separate from the vehicle, from taxes, and from any loan charges. Then ask what the financed total will be once the contract is added to the loan and interest is applied. If the seller offers only a payment schedule without a total, ask for the total anyway. A payment that looks manageable can hide a long repayment period that makes the contract far more expensive than it looked on the sale day.
Ask whether taxes and extra charges apply to the contract
Ask whether sales tax applies to the contract price where you live, and whether the seller adds any administrative charge on top of the provider's price. These are separate questions. The contract might be taxed, the provider might have its own charges, and the seller might keep a margin on the sale. Get each one in writing, then compare the total against the provider's own published terms.
Check what happens if you pay off the loan early or cancel
If you pay off the car loan early, ask whether the contract price is spread across the balance, and whether any prepayment rule on the loan applies to it. If you cancel the contract later, ask who receives the refund, the lender or you, and whether it goes against the loan balance or comes back to you directly. Cancellation rules vary by contract, so read the cancellation clause before you need it. The money-back period page on this site lists providers by the length of their published money-back period, which is a starting point for reading, not a verdict.
Get the lender's position in writing
Ask the lender whether it accepts the contract as part of the loan, whether it keeps a list of approved providers, and whether it requires the contract to be assigned to it. A lender that holds the contract can change how a cancellation refund flows, so the answer matters. Keep the final loan document, the contract, and any refund correspondence in one file. What you are collecting is the paper that shows what you agreed to pay, when you pay it, and where any refund will go.