Aftermarket automotive warranty companies usually either deal with "newer" cars, or "older" cars. The coverage's, prices, profits, and many other variables change depending on what kind of car they are covering, and more specifically, the age of the vehicle. The newer the car, and the less mileage the car has, the more coverage you will get, and the less money it will cost. Buying sooner rather then later will get you the best bang for your buck.

     The warranty companies that are in the business of providing coverage's for the "newer" cars will offer you the best prices if you purchase while your car is still young, and has low mileage. You would essentially be purchasing the coverage BEFORE your factory warranty expired, but it would take effect AFTER your factory warranty expires. Obviously, you never want to purchase coverage for your car while you still have a factory bumper to bumper warranty unless it begins AFTER your warranty period ends. In other words, you do not want to deal with a company that tries to "double cover" your vehicle. If you are shopping for a warranty while you still have a manufacturer's bumper to bumper coverage, make sure it will begin AFTER your warranty expires.

     The reason you get more for less the earlier you buy is simple finance. As long as you are covered by the manufacturer's bumper to bumper warranty, each and every necessary repair will be covered. For the period of time between your third party warranty purchase, and when your factory warranty expires, the third party company will not have to pay out any claims, and can therefore invest your money. Once your car comes into their coverage period, they have already grown your initial investment, and on a large scale, they have all the funds necessary to pay out on claims. Companies that operate this way are very financially secure. Another benefit of this type of business practice is knowing that your vehicle is probably in fairly good operating condition. Since the third party company's coverage will take effect directly after the factory coverage expires, the third party company knows your car has been factory repaired and serviced for its entire life prior to them placing coverage on it.

     As with most things in life, and definitely most insurance coverage's, the sooner you act the better off you will be. If you purchase a new car and plan to keep it for a long time, you should purchase your extend warranty early. Sometimes you can purchase an extended warranty at the same time you purchase a new car. You can use the extended warranty as a bargaining tool when negotiating the terms of your new purchase. Remember to make sure about transferability or refund/cancellation policies at the time of purchase if you are buying while you are still in warranty. You want to be able to transfer or cancel your coverage in the event you sell your car prior to the warranty period ending, or if it is wrecked.