An auto warranty refers to certain services that are provided by a dealer for the owner of the vehicle for a specific period of time after the date of purchasing the vehicle.

The dealer issues the warranty at the time of the sale of the vehicle. Any dealer who does not issue a warranty at the time of the purchase is liable to be prosecuted under US federal law. This is why it is important to ensure that you get a warranty at the time of the vehicle purchase.

The warranty period usually is available for periods of time that range from 3 months to 3 years or the depending on the mileage on the vehicle. The consumer decides what type of warranty coverage they want for their vehicle.

The cost of a warranty is dependent upon the type of warranty the consumer wants for their vehicle. Usually, the warranty that is recommended is a “bumper-to-bumper” warranty. However this type of warranty is generally more costly than other types of auto warranties that are available.