Perhaps the greatest fear most people have when buying a used car is that something major will go wrong right after they buy it. Not long ago, used car buyers had few alternatives. Private sellers had nothing to offer and about the best any dealer would offer was a "50/50" warranty good for a very short period of time. That is, any repair costs were shared equally by the owner and the dealer and only then for 30 days or so.

These days many of the used cars dealers sell come with some form of extended warranty. This may be in part due to a federal regulation requiring dealers to post a warranty sticker on their cars, including a statement, if applicable, that the car comes "as is."

Used car buyers are also able to profit from the new car warranty "wars" of the past few years. Many late model used cars are available with the balance of the manufacturer's new car warranty. Some may charge a slight transfer fee, but it would be well worth it to protect against something going wrong.

In addition to continuing manufacturer's warranties and used car dealers self warranties, a new type has come into being during the past few years: independent service contracts. These are offered by dealers for a fee and offer protection for the engine and drivetrain, and sometimes even the accessories. These warranties are frequently transferable to subsequent owners, as well.

Some used car dealerships offer extended service contracts on their late-model used cars. These contracts are usually third-party types, meaning that the service provisions are handled by someone other than the dealer (you are the second party) They work much the same way as contracts for new cars, covering the drivetrain, and perhaps the accessories, subject to a deductible for each repair. The deductible can be any amount, but is usally about $25.00. Check this out carefully, because the higher the deductible, the more you pay. For example, if you have three separate items to be fixed--even if done at the same time--your cost would be $75.00 if the deductible is $25.00 per repair (or, $150.00 if it is $50.00).

Even if the party you buy the car from offers no warranty, you might still be able to buy one on your own. Many independent service contract companies have popped up around the country. Look in the yellow pages to see if any exist in your area. If not, you may be able to find the phone number of one at the reference desk of your library or at one of the Internet's search engines.