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Dealers often suggest purchasing an extended warranty when you buy a car, but you can buy one at any time. Extended warranty coverage can vary widely, so be sure to carefully review the details of the specific warranty before purchasing.

Dealers often suggest purchasing an extended warranty when you buy a car, but you can buy one at any time. Extended warranty coverage can vary widely, so be sure to carefully review the details of the specific warranty before purchasing.

An extended warranty, sometimes called a service agreement, a service contract, or a maintenance agreement, is a prolonged warranty offered to consumers in addition to the standard warranty on new items. The extended warranty may be offered by the warranty administrator, the retailer or the manufacturer.

Extended warranties are policies that extend the warranty period of consumer durable goods beyond what is offered by the manufacturer. It covers the cost of replacement or repair of the product, if it is caused due to a manufacturing defect or poor workmanship.

Warranties provided by the manufacturer as part of the vehicle cost typically cover only certain problems with the vehicle. Extended warranties or service contracts sold for an additional charge typically cover problems with mechanical and electrical parts not covered by the manufacturers' warranty.

In general, an extended warranty can be used following a 30-day or 1,000-mile wait period. Some providers offer alternative waiting periods depending on driving habits, such as 60-day/500-mile or 90-day/200-mile waiting periods, and certain “no-wait” plans exist, but they're exceedingly rare.

Extended warranties can be offered by a motor vehicle dealership during, and sometimes even after, a vehicle has been purchased. Note: If you're buying a vehicle from a dealer do not assume the warranty is from the manufacturer.

With an independent warranty company, you can purchase coverage at any time. That's not true of a dealership warranty, which must be purchased before your factory coverage expires.