I don't know what it is specifically but it sounds like one of those things some dealers try to use to increase profit similar to when they try to sell you vehicle undercoating or paint protection. I'd guess about $388 of the $389 is pure profit to the dealer.
I would tell them you don't want the VSP and see if they will cut it out of the deal. If not, you need to look at the cost including the $389 and judge if it's still a good deal overall.
Hope it all works out!
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