Whenever you make a car purchase, the question that you are prodded with is, whether to include an extended warranty, and this applies to the new and old car. Extended warranties are sold by companies only when they have ideas to make profits. There is no real good in having an extended warranty. The point that the salesmen will convince you is that when you have trouble with the car, and the problem has something to do with the engine or transmission, you would stand to lose a large amount of money, and this could be avoided if you had the extended warranty.

If it a new car you are purchasing then this car already has a warranty from the manufacturer, and could cover up to 3 years or 36000 miles. Some companies will extend this further.

If it is an old car you are buying, then you need to consider the mileage that car has been used, the model and make of the car, before you decide on the warranty. It is best to wait for repairs than pick on a warranty, if your car usage would be above what is offered by the warranty.