An extended warranty refers to a service contract that covers a range of repairs after the manufacturer’s warranty is over. The coverage of an extended warranty program usually begins after the expiry of the manufacturer’s factory warranty program. A typical Extended Warranty program covers repair and replacement costs of electrical and mechanical components, which in some cases include problem areas not covered by the manufacturer. A warranty program can last anywhere from one to eight years and most manufacturers offer in-house extended warranty programs while you purchase your vehicle.

More - https://www.topspeed.com/cars/what-to-do-if-a-dealer-refuses-to-cancel-an-extended-warranty-ar194460.html