An extended warranty can more or less cover anything you want it to cover, so that the unknown demons of blown tires, dead batteries, or other disasters which need the aid of a towing company, can be no longer a dreaded nightmare. As far as the repairs go, the company you buy your warranty from will offer you an array of choices for paying deductibles when you visit the repair shop. If you can afford it, and think it is in your best interest, then you can choose a zero deductible auto warranty so that you need never pay anything extra when you take you car in for a warranty-covered repair. The other option is to pay a per-visit rate, making it so that you pay a fixed deductible rate whenever you need a repair done on your car.

There’s always the concern of what to do when your car has to go into the shop to get fixed, and you still have to go about your daily business without it. Most auto warranties you get for your car will cover this obvious inconvenience, providing you with a much needed rental car free of expense, so that you won’t be unduly put out by your lack of a vehicle. Further, you’ll want to be sure that, in the event you sell your car before the contract of your comprehensive auto warranty is up, you can transfer the insurance to the new owner with as little transfer fees as possible. An added plus to this, of course, is that your used car will be of far higher value in the marketplace if it is still under warranty, which is an incentive to prospective buyers to buy from you instead of from some other bloke.

Getting a warranty for your car, whether extended or under a regular plan, can be an integral aspect of automobile ownership, not only for your own sanity, but for the sake of your pocketbook for years to come.

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Of course, we all know that the world of auto sales is a highly competitive one. We won’t insult the hard-working members of that profession by lumping them all together, but sadly, there are some very shady characters out there that ruin the reputations of the rest, and give us our impressions and stereotypes about sleazy car sales people.

It is also no secret that car sales people make the bulk of their commissions on financing. This can mean big money to a sales person, so they will push the options that will be on the brink of what is most useful to the customer, to the furthest edge of what makes them the largest commission.

But where some sales people cross the line, in regards to warranties, is when they propagate the myth that an extended warranty is something that can only be purchased from the dealer, and only at the time you make the initial purchase. This is completely false.

While you can certainly make that purchase, it may not be the wisest. The costs, when bundled into your financing package for the new car, may be considerably more than if you were to shop for the extended warranty independently. A dealer usually works with only one finance company and one warranty provider, so there is no comparison shopping you can do here.

The other downside to buying an extended warranty at the time of purchase is that your extended warranty may kick in right away – so you will be double covered. If your manufacturer offers a three year warranty, and you purchase an additional five year extended warranty, you will be covered for a total of five years, not eight.

So be aware when you go in to make that purchase of a new or used car from a dealership. There is a convenience factor to purchasing the auto warranty at that time, and yes, the costs will be rolled into your financing, so you won’t have to make a large payment. But it could end up costing you, further down the road.

As with any contract, make sure to read the fine print and know exactly what your extended auto warranty service plan covers before purchasing. You might find there are many items not listed within your warranty. Ask yourself what it is you are looking for in an extended warranty, other than Roadside Assistance, car rentals and emergency towing, because sometimes those are the only perks being offered. The internet can be an important tool in researching auto warranties. Be cautious while reading different websites, but take note of all of the tips on purchasing these extended auto warranties online. Many companies will offer warranties online, just make sure you have found the on that fits your needs.

It’s never a good idea to go with the first company you come across. The best company to go with would be the one that keeps its balances high enough to cover any repair costs that might be accrued in the future. Warranty brokers, insurance groups and your car dealership all offer auto warranties. It might be in your best interest to go with an outside company when purchasing your warranty. If your dealer is offering you an extended car warranty, it’s usually at your expense. This yields an increase in their profits by including the warranty in the financing for your total purchase cost of the vehicle.

If you decide to shop around for different sources that can provide your auto warranty, consider a credit union or Internet sources. Buyers typically can negotiate within one-third of a margin of the auto warranty. Expect to pay less towards an extended warranty if your vehicle is low on mileage and age. Finally, make sure to read the service contracts that are included with the manufacturer’s warranty. On average these will provide coverage for three years or 36,000 miles or whichever is first. If you typically find yourself trading in your car just about every three years, then an extended auto warranty probably wouldn’t make much sense. Within those new years cars experience little to no trouble.