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"I'm glad we could make a deal," the salesman says, shaking your hand.

But just as you've breathed a sigh of relief, you realize that you are walking into the Finance and Insurance (F&I) office to finalize the contract. Once inside that room, the F&I manager will likely offer you things like paint protection, prepaid maintenance plans, theft-recovery systems and a road-hazard warranty for your tires. But the biggest product he'll probably push will be the extended warranty for the car itself. Extended warranties, also known as "service contracts," can provide peace of mind to some car buyers. Car dealerships like them because they are an additional profit center for the business. As with any decision in a car purchase, it is important for you to research and weigh the benefits of the product. 

If you recently bought a used or new vehicle that you suspect has flood damage, all is not lost. State and federal lemon laws are in place to protect consumers. But you’ll want to be diligent about getting to the bottom of this. 

That’s because water damage to a vehicle is serious business. In fact, you could be saddled with the following problems:

With all of the options for extended warranty plans out there, it can be tricky to find the right warranty to cover your automobile. Not all extended car warranties provide the same coverage or options, and you will want to choose carefully. The following are the main criteria we used to evaluate the best extended car warranty services. 

Many cars' auto manufacturer warranties expire around 60,000 to 100,000 miles. The need for repairs sometimes kicks in right around the time that the manufacturer’s warranty runs out. An extended car warranty can potentially save you hundreds, even thousands of dollars on repair costs, giving you peace of mind.