What is an Extended Auto Warranty? Once your vehicle’s factory or dealership warranty expires, you are left to pick up the costs associated with breakdowns. Sometimes, it’s only a few hundred dollars. Other times it can put you thousands of dollars behind. This is where extended warranties can come in handy. By paying a little each month, it saves you from having to shell out one lump sum when something goes wrong. You have a lot of options, which can get overwhelming. Don’t worry, we are here to help you decide which is best for you.