An extended service contract is a coverage for mechanical repairs and or maintenance of your vehicle. An extended service contract is sometimes called 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 time or mileage. The time or mileage will depend on each manufacturer. After the warranty period is up, you will be responsible for paying for anything that should 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.

There are many extended service contract options. Dealers may have different extended warranty products or companies available depending on where you go. Some warranties will give you the option of what level of coverage you can get.

Power-train:  Will usually only cover the engine, drive-train, and transmission. This is the foundation of your car, If you want a minimal amount of coverage this could be the one for you.

Electrical: This covers some or all of your electrical components.  Electrical components are often quite expensive and can be known to have problems more often than any other vehicle part.  Electrical coverage often comes with a mid to high-level service contract

Comprehensive: Otherwise known as bumper to bumper will generally cover most components that can go wrong due to normal wear.   This is usually the highest level of coverage and recommended if it is affordable.  Comprehensive coverage should cover vehicles most expensive parts and labor.

Some warranties need to be used at a franchised dealer. For example, you might be offered a Chrysler warranty on a Chrysler vehicle. This type of warranty might be okay if you think you will never break down where you are not close to a franchise dealer, however, if you would like 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.