I have covered this before, but extended auto warranty contracts are not for everyone. You need to evaluate your unique situation and decide for yourself if a service contract will be beneficial to you. Do not ask the warranty companies, they want to make the sale and will never tell you to save your money for a rainy day. Figure out how many miles per year you drive, how long you plan on keeping your car, and do some research on the type of car you have.

     Find out if your car is more prone to repair then other cars in it's class. Check to see if a large aftermarket exists for your vehicle. If so, you may be able to access all the necessary resources to repair your car yourself if something was to go wrong. There are not many alternate solutions to an extended auto warranty. You need to calculate how much the policy will cost you per year, research the average cost of your car's repairs per year, factor in your variables, and solve the equation for yourself.

     If you are thinking of purchasing a contract for two to three thousand dollars or more, sometimes you would most definitely be better off setting up a rainy day fund in case of an unforeseen repair. You could even invest some of this money into routine and up to date maintenance of your vehicle to cut down on the risk of a premature failure. If you are at all handy, you would be surprised at how easy it is to work on your own car. Although I advocate the purchase of a solid third party warranty, I am also an avid Do-It-Yourselfer and try to do everything I can in house. With the plentiful resources that are available on the internet, you should have no problem finding procedures for most common repairs for every major car make and model. Check out the car clubs and organizations specific to your vehicle manufacturer. You can find repair shops and retailers offering discounts and specials to members. Become a member and you can benefit greatly from the shared knowledge.

     There is nothing that can be done about auto repair expense. As cars become more technologically advanced, part prices and labor expense will continue to rise in the United States and Canada. Now more then ever it is important to plan for these expenses ahead of time. If not by purchasing an extended auto warranty, you should plan for these expenses by keeping an auto repair savings fund, learning to work on your car yourself, and joining the automotive networks available to you.

     Cut down on the possibility of costly auto repairs by maintaining your vehicle to manufacturer specifications. The car will only last as long as you take care of it. If you are concerned about the cost of maintenance, research as much as possible about the car you are thinking of buying. There is readily available information about the average cost of repair as well as the common problems for virtually every make and model car available in the United States and Canada.