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Companies that specialize in Extended Service Plans tend to offer the most complete, reliable, and competitively priced coverage when compared to most policies sold by car dealers. Yes, you may be covered under the manufacturer's warranty today but if you are planning to keep your vehicle beyond the manufacturer's warranty coverage you can save money in the long term: the sooner you extend your coverage, the newer your vehicle, the lower your rates will be. Extended service plans also offers additional coverage and benefits beyond what's offered on your manufacturer's warranty. Qualifying for credit is based upon the purchase price, your income, down payment/trade-in, and credit score - not your Extended Service Plan purchase. Be weary of the dealer that tells you otherwise. "Mechanical breakdowns" are often considered defective parts or workmanship whereas "wear and tear" includes parts that are known to wear out and need replacing over time. The best coverage offers wear and tear; this is especially needed for older vehicles. Cheaper is not better when it comes to most extended warranties. Extended service plans come in all shapes and sizes and not all might be a match for your vehicle and needs. No service plan exempts you from performing the routine maintenance and repairs necessary to keep your vehicle in good working condition. Regular oil/fluid changes, brakes, tires, and minor components all require regular service as outlined in the Owner's Manual or other parts and components will wear and break before their time. Failure to properly maintain/service your vehicle may void coverage.