There are thousands of people who just today, as you read this nonetheless, will be signing a lengthy auto loan document and buying a new car dealer invoice price. In most cases they are not in the know, to say the least, about the do's and the don'ts of a new car extended warranty. However, I am here to enlighten you on this prospect. One that many people fail to realize can actually save them thousands upon thousands of dollars at a later point during the life of their new vehicle—that they just shelled out thousands for on a new car dealer invoice price—sometimes even overpaying when they could have saved money, but that is for another blog entry.

So to get the ball rolling, just what is a new car extended warranty, and why should you spend the extra money buying one when you just paid a bundle for new car dealer invoice price? Even if you haggled the price down, most people are usually left feeling a little bit strapped and a might-bit worried when they leave that auto dealership—even though they are driving the new ride of their choice.

A new car extended warranty is another method of added protection that you can purchase at the time that you are buying your car. One that offers a few extra years on the standard manufacturer warranty that already comes with the vehicle. Here are some things to consider.

• The average car begins to show signs of serious wear-and-tear at about 70,000 miles on the odometer
• Typical high-cost items that start to fail are usually associated with the drive train and the transmission
• How many times have you heard horror stories from your friends about how they had to spend $1500 or more just to repair their transmission, when their car is not even five years old

When you buy a new car, always ask about the new car extended warranty. Pretty much, your car already comes with what is called a bumper-to-bumper warranty that last X amount of time (usually 5 years and 60,000 miles, which ever comes first). When you buy a new car extended warranty it "extends" this coverage to typically 10 years or a 100,000 miles, whichever comes first. So after five years has run out, or you have reached the 60,000 mile breaking point, you are out of luck unless you thought ahead and bought a new car extended warranty first. Basically this means you are covered on almost every moving part, the interior included, and you will not have to pay high repair costs when you least expect to. This usually also includes a roadside assistance program. So, should your car breakdown on the side of the road, you get it towed to the shop for free and fixed at no cost to you!