Car warranty refers to repair and maintenance service offered by the vehicle dealers in association with a third party vendor. The car warranty covers repair and maintenance of engine, power train, drive train, brakes and steering system.

The car warranty is issued by the dealer at the time of delivering a car from a showroom. The car warranty has to be finalized by the car owner in association with the dealer. At least five different packages of warranties have to be offered to the car owner for a review. Normally, dealers have a tendency to push for the third party vendor of their preferred choice. Avoid such offers since they could include hidden costs.

If the dealer does not provide multiple offers, insist on them. If the dealer expresses inability to offer multiple packages, insist on buying one from an open market. It becomes obligatory for the dealer to suggest to you a warranty from the open market. Any dealer, who delivers the car from the showroom without warranty, is punishable under US law.

The car warranty is offered either for a particular time schedule or for the mileage covered by the car. There are flexible options in both categories. Choose the best, which suits your preference. Having a car warranty is like another insurance.