When choosing to re-establish or simply establish credit with an auto loan it is important to protect both yourself and the vehicle for the time of the loan. This is why extended warranties are recommended. Extended warranties give you the ability to drive your new vehicle, do your regular maintenance and not worry about repairs.
Payments on extended warranties will be made on a bi-weekly or monthly basis. Un-like an unexpected break-down, these payments can easily be planned for.
There are many different types of extended warranties, with different parts and components covered, but the intention behind having them on your new vehicle is to allow you to make the scheduled payments for your vehicle, the ones you can plan for, and relieve the stress of having to make your scheduled payments in addition to finding the money for the unplanned repairs.