One of the questions you will need to answer when buying a new car is whether or not you want to purchase an extended warranty. Extended warranties cover repairs that aren't included in your car’s manufacturer’s warranty. An understanding of when an extended warranty is helpful, and when it’s just an expensive security blanket, will help you decide whether or not to pay for the service. 
Expected Car Life-Span
Before spending extra money on an extended warranty you should look at your car’s existing manufacturer’s warranty. Think about when you might want to buy your next car, as the average new car warranty lasts for five years or 60,000 miles. If you are likely to replace the car before or soon after the manufacturer’s warranty ends, an extended warranty would be unnecessary. However, if you are hoping to drive your car for a decade or more, the expense is more justifiable.
Wear and Tear Coverage
One of the primary benefits of extended warranties is that they cover the wear and tear damage not included in most manufacturers’ warranties. You should seriously consider adding an extended warranty to your coverage if you are buying a car known for higher levels of wear and tear damage, like fragile sports cars and rebuilt antique vehicles. The ongoing expense of routine car maintenance and wear and tear upkeep is likely to overshadow the one-time cost of buying an extended warranty. Look into the maintenance reputation your car has among other consumers for guidance. Also be certain your existing manufacturer's warranty does not cover such repairs and upkeep, as a number of newer models come with extremely comprehensive warranty coverage.
Peace of Mind
Outside of the practical benefit of an extended warranty lies the emotional reason most drivers opt for an extended warranty. The early signs of a problem with your car not covered by manufacturer’s warranty will cause less stress and anxiety if you know there’s an extended warranty in place to protect you from a possibly budget-busting repair bill. Even if you intellectually realize the chances of needing your extended warranty are slim to none over the life of your car, spending the money upfront in order to avoid paying later can give you peace of mind. Think about whether or not you are willing to take on an additional expense for emotional reasons, and the price tag you put on that peace of mind.
The average driver has little to no practical need for an extended warranty. However, in cases where a high maintenance car is the vehicle being covered or a driver is particularly nervous about continual repair bills, the benefits to having extended coverage in place outweigh the additional one-time expense.
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