Extended warranties are extended warranties that are offered to product owners. This is offered in addition to the regular warranty and is therefore also known as a service contract or agreement. Often, extended warranties cost more than the regular warranties and also come with a set of terms and conditions that may or may not be similar to the original contract.

As we are mostly aware, automobiles are among the most common products that get extended warranties. It is up to the owners to decide whether they would like to invest in an extended car warranty or not. But once invested, the car owners can relax about maintenance expended which may be harsh on their wallets.

There are a few things to keep in mind while deciding to add an extended warranty. The first thing obviously would be to decide if adding an extended warranty is truly required. Not all cars will need this and as car owners, you should not just take the word of your car dealership but also consult with brands and lenders. The second thing to do is to research the options available. The different types of extended warranties vary not just from manufacturer to manufacturer but also dealer to dealer. An extended warranty is only required once the manufacturer’s warranty runs out. So, owners should make sure they are not purchasing an extended warranty or paying for coverage while the manufacturer’s warranty is still active.

Choose the car dealership wisely to purchase the extended warranty. There are various options for purchase. Owners should ask around and research online for the different packages. Compare the prices on the extended warranties and choose what makes the most sense to you. Once this is decided, do not give in to the salesmen. Be open to suggestions but stick with your research.

Before purchasing, consider the pros and cons of purchasing a used car over a new car. This should be decided considering how long you plan to keep the car, what are the service models available there and the prices of different car models.

Finally, once you are sure about purchasing a used car and an extended warranty, check for who back up the warranty. A warranty that is backed up by third parties may not be allowed to use in all dealerships and limit to where the car was purchased from. This is the final step.

Sources:
https://en.wikipedia.org/wiki/Extended_warranty
https://www.popularmechanics.com/cars/how-to/a11938/how-to-get-a-used-car-warranty-and-not-get-screwed-6654348/