An extended service contract is coverage for mechanical repairs and or maintenance of your vehicle. An extended service contract is sometimes referred to as an extended warranty. A new vehicle usually comes with a factory warranty. This will cover various things that may break due to normal use for a set period of time. The period of time will depend on each manufacturer. After the warranty period is up you will be responsible for paying for anything that needs to be done to your vehicle. If you purchase an extended service contract (extended warranty) for your vehicle you may be able to get your repairs or maintenance covered after your factory warranty expires. Their are many different extended service contract options. Each dealer may have a different extended warranty available and may even have more than one for you to choose from. Some warranties will give you the option of what level of coverage you can get. A power-train warranty will usually only cover the engine, drive-train, and transmission. This is the foundation of your car, If you want the minimal amount of coverage this may be the one for you. Electrical, this covers some or all of your electrical components. Comprehensive, otherwise know as bumper to bumper will generally cover most components that can go wrong due to normal wear. Some warranties need to be used at a franchise dealer. For example you might be offered a Chrysler warranty on a Chrysler vehicle. This type of warranty may be ok if you think you will never break down were you are not close to a franchise dealer, however, if you would like to be able to use your warranty anywhere you may want to get a warranty that can be used at any certified repair shop. If you think that an unexpected repair of somewhere between $800 and $3000 will set you back, you may want to consider getting an extended service contract. Even though the extended warranties do cost money, you can usually add them into your financing to spread out the cost evenly over all of your payments to make it affordable.

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