An extended car warranty gives one the assurance that their vehicle will be looked after even after the initial warranty period.

Some facts about extended car warranties are:

• Time frame
  Choosing a warranty plan completely depends on how long you want the plan along with the usage. The most common extended warranty plans are the two-year/24,000-mile warranty or the three-year/36,000-mile warranty plan. It makes more sense to opt for a longer plan only if you want to keep the car for as long as possible.
  For new car buyers, while most manufacturers offer a basic warranty of three years or 36,000 miles (whichever comes first), there are a few who offer coverage of four years or 50,000 miles. Also, most of them offer additional coverage on the powertrain including the engine, transmission, and axle systems along with the related computer control systems. This is usually expensive if one had to pay for it from their own pockets.
• Financial considerations
  It is of great financial benefit to get an extended warranty that covers various repairs that your car might need in the future. These warranty plans will take care of expenses involved in repairs, even if you are in the middle of a tough financial situation or concerned about your credit score. It eliminates the need for a personal loan or any other high-interest loan that one would otherwise use for the repairs without a warranty. There are some service providers who would not even need cash payment towards the purchase of these warranty plans, which is great if you are short on funds.
• Choosing a long warranty plan
  Although a new car purchase costs slightly more than a used car, people don’t mind shelling out the additional amount as it comes with a fresh warranty plan. It makes sense to find a new car that offers a long warranty coverage period if you are willing to spend that additional money for a comprehensive new-car warranty. So, it is better to compare the cost of a new car along with the warranty and a used car with an extended warranty based on the various aspects such as its usage.
• Comparison of cost with and without an extended warranty
  In general, unless your car’s quality is not guaranteed or you have a very rough way of handling it, one need not get an extended warranty coverage plan. These plans are usually made based on thorough market research about various usage patterns. Additionally, it will cost you more if your maintenance habits are good or if the car has fewer quality issues during the regular warranty period.
  It is advisable to compare various options by checking ratings and discussion threads on various automotive forums. Additionally, taking opinions from some experienced drivers or knowledgeable mechanics helps. There are several new car warranty plans which offer free maintenance and free scheduled service to ensure that the leased cars are returned in good condition. It is always better to read the fine print.