Car warranty refers to a particular kind of service, which encompasses the repair and maintenance of the car, from the date of sale for a period of time. The warranty is issued by the car dealer in association with a service vendor. There are two warranty categories. The first category is called genuine car warranty or new car warranty meant for brand new cars. The second category is called used car warranty, issued to aftermarket cars or pre-owned cars. 

As per US federal law, all used car dealers have to issue used car warranty while delivering the car. At least four different packages have to be offered to car buyer. There are possibilities of the dealer persuading the car owner to buy a particular kind of warranty. Check the credibility of such warranties since they could be fraudulent in nature. Any dealer offering fraudulent used car warranty is liable for punishment. Car buyers are protected under a law called lemon law. 

The used car warranty or aftermarket auto warranty is offered on twin basis, either on the distance covered by the car from the date of sale of the car or on the number of days. The package can vary between 3,000 kilometers to 30,000 kilometers. It can also vary between three months to three years.