If you've ever bought a car at a car dealership, then you've most likely been through the extended warranty sales pitch in the finance department. When you sit down to sign your loan contract, the pitch is usually always made to sell you a service contract. It's kind of ironic that the salesman that told you how dependable that used car is going to be for you, turns you over to a finance manager that puts doubt in your mind in the hopes that you'll spend more money on a warranty. While a used car extended warranty is very good to have, they're very overpriced at car dealerships.

So how do you get the best deal on an extended service contract?

You can try to haggle your way into a better deal on one at the car lot, or possibly request that one be included in the price that you've already agreed upon for the vehicle. While this can save you money, it's impossible to tell if you're getting a fair price or not, because there aren't any "retail" stickers for extended warranties to compare prices for. This can leave you in the dark, so to speak, about what you should be paying.

The best option is to compare quotes online. This may or may not surprise you to learn, but extended warranties for used cars are much less expensive if you purchase them directly from the warranty companies. An extended warranty that sells for $2,000.00 through a car lot may only cost you a few hundred dollars if you buy direct.