An auto warranty can take the form of a manufacturer’s warranty, a used car warranty, or an aftermarket auto warranty. A manufacturer’s warranty comes with the purchase of a new car and is included within the vehicle’s purchase price. In other words, you pay no additional costs for a manufacturer’s warranty or a new car warranty. Used cars on the other hand, may or may not carry used car warranties .

In some states it is the law to provide a used car warranty with all used cars sold. The law can vary from state to state however, so you need to check to see if you are entitled to the used-car warranty coverage with the purchase of your used car. Another type of auto warranty coverage thatr is optional is the  extended warranty or the aftermarket warranty. This warranty is one that can be used in conjunction with a new car warranty or a used car warranty to extend the time frame or total coverage of your vehicle.

An aftermarket warranty however is more of a service contract than a warranty agreement, meaning that you have to pay additionally for this coverage feature. A point of interest to remember though is that all cars are covered by an implied warranty unless specifically stated otherwise in a contractual auto warranty agreement that most dealers would provide in writing.