What is an extended warranty?
The Bankrate.com financial term of the day is: "extended warranty," also known as a "service contract."
When you buy a vehicle, you expect that the manufacturer's warranty -- or the dealer's warranty, if it's a used car -- will take care of any repairs or problems that crop up during the initial months or years. An extended warranty, or service contract, is a product that covers issues that arise with your car for an additional period of time after the automaker's or dealer's warranty expires. With a new vehicle, you typically have a time limit for deciding whether to buy the extended warranty.
An extended warranty or service contract can provide some extra peace of mind if you're worried about potentially facing big vehicle repair bills.
For all you need to get yourself rolling in a new set of wheels, visit the Auto section at Bankrate.com.