A warranty is a guarantee made to a consumer by the seller for the product that is sold. When a warranty is for a vehicle, it is a contract that covers the repair and replacement of car parts for a certain amount of time.

New car warranties offer a variety of benefits. When the consumer purchases a car from a manufacturer, they are provided with a guarantee that if any defects or mechanical failures happen in the car, the cost for repair or replacement of the part in question will be covered. There are two types of new car warranties. The first warranty is the powertrain warranty, which covers the parts of the car that make it run. The second warranty is the bumper-to-bumper warranty, which covers all of the parts of the car from the front bumper to the back bumper.

New car warranties provide motorists with peace of mind when receiving bills from the repair shop.