TO MINIMIZE RISK WITHOUT BUYING AN EXTENDED WARRANTY …

Use our reliability Ratings to find a reliable vehicle that is less likely to give you trouble. That way you shouldn't need an extended warranty. If you do get a vehicle that has below-average reliability, use our chart on the facing page to investigate further how the car make compares in extended warranty usage.

Put the $1,500 to $2,300 you might spend on an extended service contract into a money market bank account or mutual fund instead, to insure against unlikely significant repair costs due to parts failure.

Faithfully perform all scheduled maintenance recommended by your manufacturer to reduce known causes of failure.


IF YOU WANT TO BUY AN EXTENDED WARRANTY …

Shop for a plan six months before your factory warranty runs out, not when you purchase the vehicle. Look for a manufacturer's plan, which should be financially more secure.

Demand sample contracts of the automaker's basic, midlevel, and most comprehensive plans before you buy, and ask your mechanic to review the coverage, limits, and exclusions and to recommend the best value.

Bargain very hard to knock down as much of the sales commission as possible. Industry experts say they've seen commissions range from zero to 50 percent. Negotiate for the most comprehensive plan with a $100 deductible for a price at 1 to 2 percent of the vehicle cost per extra year of coverage. Of the survey respondents who negotiated, 75 percent won a discount.

If you buy when you purchase the car, it's best not to fold the price into the auto financing. That makes it easier to change your mind if you want to cancel.

Keep copies of maintenance receipts and your extended service contract in the vehicle so that you have the materials on hand for the shop if you need a repair.