You can purchase an extended warranty through a dealer or third-party warranty company that specializes in extended vehicle protection. But like the financing they offer, dealers tend to increase the cost of extended warranties to make a profit. Once the manufacturer's warranty expires, purchasing an extended warranty for a new car will provide you with the protection you need. Older cars with higher mileage are more likely to suffer breakdowns, and warranties with benefits such as roadside assistance provide significant benefits.
This allows you to enjoy the benefits of a warranty without fear that it will go to waste when buying a new vehicle. To make matters worse, most extended dealer warranties generally allow you to include the cost of coverage in the price of the vehicle. You can purchase extended warranties for most major appliances, such as refrigerators or washing machines, as well as new and used vehicles. However, many manufacturer's warranties don't cover the costs associated with a vehicle breakdown or they may expire too soon.
You can purchase an extended auto warranty at any time, although waiting until the original factory coverage has expired will usually mean paying a higher premium. Extended warranties are extensions of the coverage provided by a standard warranty, such as a manufacturer's warranty or home warranty. Most manufacturer's warranties cover common repairs for a short period of time or limited mileage, typically three to five years or up to 60,000 miles. In addition, extended dealer warranties come at a notoriously high price compared to extended third-party quality guarantees.
A veteran car dealer recently told me that only 1 in 10 people who buy extended warranties end up using it. Manufacturers generally require you to purchase an extended warranty on the day the vehicle is purchased or before the factory warranty expires.