The world of auto warranty companies is a fiercely competitive one. There are a limited number of cars on the road – granted, there are millions of them, and every one of them, at one point or still, has or had a warranty – but with the large number of companies fighting for the business of those drivers, it means that every car owner is the target of some very hungry sales reps.

This can be quite a daunting position to be in for a car owner. Whether you are buying a new car from a dealership, or purchasing a used car, there will be people trying to sell you their warranty services.

In the dealership, you might run into a pushy sales person who will try everything they can to get you to sign on for an extended warranty when you make your initial purchase. There are benefits to buying at that time, including having the costs of the warranty rolled up into the financing for the car, and knowing that your dealership will continue to be the place to have any repairs or replacements done. But these comforts might end up costing you hundreds or thousands of dollars in the long run. Sales people make very large commissions on warranties, so they’re eager to get you to sign up for one. But the price that is rolled into the financing will likely be a lot higher than it would if you sought out your own quotes from third-party extended warranty providers. Granted, you will have to pay more up-front with those third-party companies, instead of adding a small number to your monthly car payment bills. But it could very well save you money.

But just as not every car sales person is out to rip you off, not all third-party providers are good guys, either. There are some risky ventures out there, so a wise shopper will compare not only the prices offered by these vendors, but the terms and conditions of the warranties they offer. If a company won’t let you review the warranty before you buy, don’t waste your time or money – it’s likely a scam, or just a really bad set of terms that will tie you to some big costs further down the road. Auto warranty companies will fight to gain you as a client, so use that to your advantage. Compare prices, look at all of the terms of the warranties offered, and tell the companies you speak with “hey, make me the best offer.” If they can’t, someone else will.