When buying a used car, it's important to think about all costs -- the price of the vehicle, insurance, repairs, etc. Minor and major repairs can be a real headache, as well as a wallet buster.

By buying an extended warranty on your car to cover repairs, you can eliminate the headache and save a lot of money in the long run.

An extended warranty is sometimes called a "vehicle service agreement." It is an agreement made for a specific period of time that gives the car's owner protection against having to pay for certain repairs made to the car once the manufacturer's warranty has expired.

Purchasing an extended warranty can provide you peace of mind and limit how much you pay for repairs in the end. For example, if you know the average repairs for your car will be around $1,000 over the next five years, you might want to consider purchasing an extended warranty -- even though it might cost $1,200 to $1,300 -- because you won't want to risk higher repair bills if your vehicle needs an above-average amount of repair over time.

What many people do not realize is that they can purchase an extended warranty for a car right before the manufacturer's original warranty has run out -- unless the car has a salvage or junk title. By getting a vehicle history report on your car, you can find out if it has ever held a salvage or junk title. You can get a Carfax Vehicle History Report at Carfax.com.

Compare prices of warranties by shopping around. When looking for good warranty cover, consider if it's transferable. This is a good selling point, should you ever decide to sell your vehicle. It is an added bonus for the buyer. One of the best ways to check out extended warranty companies is through one of the Better Business Bureau's Web site.

When purchasing a used car, it is a good idea to check and see if there is a warranty already in place and find out all the details. This can also be a good negotiation tool when trying to meet a dealer at a good price. To find out what warranties are available when specific makes and models of vehicles are new, you also can go to Carfax.com.

If you purchase an Unlimited History Reports account, you can get free Carfax Safety and Reliability Reports, which outline warranty information such as basic coverage, drivetrain, emissions, corrosion, transferable, roadside assistance, and safety belt and inflatable restraint in addition to specific notes on that make and model. Then, you will be empowered to take this information to the seller and compare notes on what warranty originally came with the car versus what is left on the warranty.

Information is power for the consumer, and it is best to think beyond the price of the car when making a purchase. Deciding whether or not you need an extended warranty at the time you buy a used car can help ensure you've bought a car that will get you where you need to go at minimal cost.

This content sponsored and provided by Carfax.com.