Aftermarket automotive warranty companies are 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 older the car, and the more mileage the car has, the less coverage you will get, and the more money it will cost. Buying sooner rather then later will get you the best bang for your buck.

     For the sake of this article, I will define "older" cars as cars that are out of their manufacturer warranty period and have over 100,000 miles. Many companies will not sell coverage for these cars and this is because they deal only with "newer" cars. There are many companies that will sell coverage on a older car. The key to getting good coverage on an older car is finding a good warranty company. Some sell what I call "junk contracts" which are worth less then the paper they are written on. These contracts will cover a very limited amount of components, have low limitations of liability, and will be priced very high. There are things to look for when shopping for coverage on an aged car.

     Before you even think about purchasing coverage for a car that is out of warranty, find out how much your car is worth. In today's economy, you may be surprised at how depreciated your car has become. If you drive a lot, you may be out of warranty based on mileage, rather then time, and an extended warranty may be a good deal because your car is still worth good money. If your car is old (10+ model years), but has low mileage, it may also be worth good money, therefore you should invest in an extended warranty contract. Once you decide that you will benefit from extended coverage, you need to find a good warranty company. There are a lot of companies that will try to sell you coverage, so you need to know what to look for.

     Older cars with higher mileage are obviously more prone to breakdown then newer cars with lower mileage. Since you did not purchase your warranty earlier, be ready to pay up for an extended warranty contract. You really get what you pay for, and compared to purchasing an extended warranty for a newer car, even if this contract is more expensive, you will benefit just the same.

     Make sure that the contract is comprehensive and covers labor and parts. As cars age, the components most prone to failure are electrical ones, not mechanical ones. There is no point in purchasing a warranty that only covers your power train, you would be better off saving your money. I have personally encountered companies that will sell contracts that are good for up to four years with unlimited mileage on cars with well over 100,000 miles. I have also seen these companies pay out twice the amount of the contract cost. There are good deals to be found. Research, research, research.