There is a lot to know before buying an extended car warranty.

Dealers may often overlook the details when trying to sell you an extended car warranty.

All automotive manufacturers offer extended warranty packages on their new vehicles. Many of these auto warranties go far beyond what the initial factory warranty would cover.

Just like the price of any vehicle, the price is open for negotiation. If you plan on keeping the car for a long period of time, a longer warranty might be a good idea for you. An extended car warranty is also a good idea if you are leasing the vehicle beyond the term of the standard warranty.

Before deciding if an extended warranty makes sense for you, ask:

What specifically does the extended plan cover?
Is it a bumper-to-bumper warranty or just the powertrain?
Does the warranty package have a deductable? In other words, will you still have to pay a minimum charge for every time a part has to be replaced?
Is the auto warranty transferable when you decide to sell it? This can increase the used car value when it comes time to sell the car.

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These extended warranties can be very expensive so you want to be sure that you are making the right decision. An extended car warranty may be a wise decision if:

You do a lot of driving which will quickly surpass the mileage that the standard warranty will cover.
You are buying a model that is new to the maketplace, thus having no reliability data.
Your have a tendancy to drive your cars hard.

Dealers make a lot of money on extended car warranties. Before you agree to buy one, think about whether it makes sense for you. Just about every new car on the market today is well engineered to stand the test of time with no unexpected break downs.

If you do your homework and buy the right car (one that fairs well in terms of reliabilty) you may find it useless to spend money (hundreds, sometimes thousands) on something that may be of no value to you.