If you have recently purchased a vehicle, you may have been faced with the question of purchasing an extended warranty.  Whether or not you need an extended warranty would depend heavily on the intended purpose for which you have purchased the vehicle.  Basically, an extended warranty is a service contract that agrees to cover auto repairs and maintenance within the cost of the warranty for a certain time frame only.  Once you decide on the purchase of an extended warranty however, you must decide if you want the manufacturer’s warranty, or an aftermarket auto warranty.

The aftermarket auto warranty is a warranty contract issued and honored by a service dealer other than the manufacturer’s authorized dealers.  Aftermarket auto warranties are cheap and can be purchased for both new and used cars while manufacturer’s warranties are expensive and mostly cover new cars.  Also, an aftermarket auto warranty can only be honored by the issuing service provider, meaning that your vehicle must be taken to the same place for servicing or repairs as where you bought the warranty.  Another risk with purchasing an aftermarket auto warranty as opposed to a manufacturer’s warranty is the financial stability of the company that you are purchasing the warranty from – will they be able to honor the contract at all times?