There are are many people out there telling you to extend your car warranty.

What does that mean? 

Well, first of all there is no such thing as extendeding your car warranty.

Technically, a warranty is what comes with the vehicle and is backed by the manufacturer.  An extended warranty is really a vehicle service contract. 

A vehicle service contract is a contract between a third party administrator and a customer, whereby the administrator promises to pay for covered repairs when that vehicle breaks down.  Even an extended car warranty that the manufacturer backs or has their name on is typically administered by a different entity other than the manufacturer.  In addition, the company that "backs" the extended warranty is an insurance company and not the manufacturer.

So, when it comes time to extend your car warranty you will be dealing with another party other than the manufacturer even if it has their name on it. 

So when you do extend your car warranty, the question you really want to ask is "Who is, and how large is the insurance company that backs the car warranty?"