by 
The Curious Bag
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<h4 class="dechead">On One Hand: Put Your Money in Savings
If you buy a used car that has no warranty or one that will expire soon, and if you put money aside in a savings account each month in anticipation of car repair costs, you will probably fare better than if you purchased an extended warranty, according to a BankRate.com report from John Nielsen, director of AAA's Approved Auto Repair Network.
On the Other: Provides Peace of Mind
If you do not trust that you will put away enough money to pay for car repairs if needed, which will leave you without the ability to pay for car repairs, then you may want to purchase an extended service contract.
Bottom Line
Buying an extended warranty is like betting, according to BankrRate.com. If you suspect that something major is going to happen to your car, then you will want to buy an extended warranty. Keep in mind, however, that in most cases, the average repair claim against a $1,000 extended warrant contract comes to only $150, according to Edmunds.com.
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