How Does an Extended Warranty Work on a Used Car? Is It Worth It?

When buying a brand new car, buyers enjoy the peace of mind that comes with the manufacturer's warranty because it can help the owner save money on the costs of potential repairs down the road. But if you're buying a used car, the manufacturer warranty could be (or is almost) expired. Fortunately, it's easy to extend the warranty coverage on a vehicle. But what exactly is covered with an extended warranty?