At the Dealership, Everything's NegotiableIt's Murphy's Law: Your car will probably need a major repair as soon as the factory warranty runs out. If you plan to keep your car past that point, buying an extended warranty (also called extended service contract) could be a worthwhile investment. Like nearly anything a car dealer sells, though, it's a high-profit product whose price can be aggressively negotiated.
Advantages of a Factory Warranty

Extended vehicle warranties fall into two classes: manufacturer (a.k.a. factory) warranties and third-party warranties. Even though manufacturer warranties are generally more expensive, Edmunds recommends them over third-party warranties for several reasons:
Factory-trained technicians using manufacturer-authorized parts repair your car.
Repairs aren't delayed while authorization for repairs is obtained.
You don't have to lay out the money up front or file claims for reimbursement.
If you sell the vehicle, factory extended warranties are often transferrable to another owner.

To learn specifics about what the factory extended warranty covers, go to the manufacturer's extended warranty page, linked here: Acura, Audi, BMW, Buick/Cadillac/Chevrolet/GMC/Hummer/Pontiac/Saturn/Saab, Dodge/Chrysler/Jeep, Ford/Lincoln/Mercury, Honda, Isuzu, Jaguar, Land Rover, Lexus, Mazda, Mercedes-Benz, Mini, Nissan, Subaru, Toyota, Volkswagen, Volvo (For brands not listed above, see your dealer for details. Dealers may use third-party programs and offerings may vary.)

Dealers are able to sell both factory and third-party warranties, but will strongly promote whichever brings them the most profit, so don't necessarily believe it if the dealer says he "doesn't offer" the manufacturer's warranty. Most plans are purchased through your dealership, but some brands also sell extended warranties over the phone.
Timing Your Purchase

Buying an extended warranty when you purchase your vehicle lets you fold the cost of the warranty into the vehicle's financing. This can mean a small bump in your monthly car payment, instead of laying out a lot of cash in one lump sum. But you don't have to buy an extended warranty when your car is new. You can add this financial insurance to your ride any time before the standard factory warranty runs out, without paying a penalty. You might also be able to add the coverage even after the standard factory coverage expires, though this can be far more expensive.