What is an extended car warranty? It is a warranty that you pay for above and beyond what the dealership or car company provides you with when you purchase your vehicle. So the question then becomes are you buying a new or used vehicle? The reason why this is important is quite simple, used vehicles have a higher risk of needing some type of major service as time rolls on. For instance, let’s assume you purchase a new car that has a stellar service record such as a Toyota Camry. These vehicles have consistently been rated at the top of the service list, in other words, you won’t find them breaking down too often! Why would you want to purchase an extended warranty on a vehicle that has such a high user rating? The answer is, you wouldn’t. Whatever Toyota or the dealership offers when you purchase this car is more than enough. As long as you follow the recommended service dates that are required such as oil changes and replacement of belts and hoses, the odds dictate that you should be just fine. That is one of the reasons why this is such a popular car! But not everyone is going to go out and purchase a Toyota Camry. People have different tastes in vehicles, and some vehicles require more service or even specialized service, than others. After doing the appropriate homework and checking out Consumer Reports on various vehicles, you should get a good idea as to which cars might need more protection with an extended warranty than others. It really is a simple as that. If you fall in love with a car that has an unfortunate service history, it might we wise to purchase an extended warranty for the extra insurance it provides. Used cars can generally follow the same rule as above, but realize that these cars are used! You really can’t tell how the previous owner drove the car and whether they beat it or not, even if you have the previous service records. But does that mean you should automatically purchase an extended warranty? Not really. If the car is relatively cheap to purchase and service, it might not make sense to throw a lot of extra money on an extended warranty. It all depends on the make of the vehicle, the mileage, and the reputation. So it makes sense to do your homework and to properly research what it is you are buying. So when does it make sense to purchase an extended warranty? From personal experience, I purchased an extended service warranty on a used BMW 750li. Even though the car was only a few years old, the extra cost of an extended warranty made sense. Why? Because it costs the proverbial arm and leg to service this car. The flagship of the BMW car company, the 750li is a beautiful vehicle, but even doing an oil change on this chariot costs close to $300! Plus, there are so many different electronic components and computer controlled features that any mechanic would have his hands full with this car. The expense is just too much, so an extended warranty makes sense. For the extra money, the feeling is that the extra insurance of the extended warranty gives me peace of mind. And peace of mind is what it’s really all about! Category:Home › Autos • Will the trend toward economy-size car models lead Americans back to buying smaller-sized cars? — part 2 • You should never use after-market auto parts when maintaining or fixing your car • Should a new car be rust-proofed? • Will the trend toward economy-size car models lead Americans back to buying smaller-sized cars? — part 1 • Five safest cars in North America • How to ensure your teen drives safely after getting a license • Pros and cons of using an hydrogen generator for your car • DIY automotive maintenance: How to change the oil