Most dealers will try to talk you into purchasing a warranty or service contract with your car. They offer different types of warranties and contracts, depending on whether you are purchasing a new or used car. This is beneficial to the dealer because it adds to their profit. This may not always be to your advantage though. Buying an extended warranty through the manufacturer might make sense at the time of your car purchase, but you may end up paying too much for it.

Also, if you are financing your car through a bank or other financial institution, the price of the warranty or service contract will be factored into your loan. This means you will end up paying interest on it. Sometimes the financial institution will even offer additional coverage. I would not recommend purchasing it because you can probably find better deals elsewhere.

If you take the time to research your warranty options properly, you will see that offers the best extended vehicle protection plans for the best price.