My wife and I both paid our cars off about six months ago.  We thought about trading them in for new models but decided against it.  We wanted to save money for a down payment on a house.  Being without two car payments for awhile would really help us reach our goal quickly.  I did some research on auto extended warranties and found a company that had a great reputation.  I am so glad we purchased this warranty protection.  My wife just got her car out of the shop yesterday.  The transmission needed to be replaced and the bill on that repair would have seriously damaged our savings account.