Auto warranty refers to the maintenance and service of the vehicle by the dealer in association with a third party vendor for a stipulated period of time from the date of sale of the vehicle. All brand new and used car vehicles have to ply on the road with an authorized warranty. Any dealer, found to have not issued a warranty, is liable for prosecution under the US federal law. At the same time, it is the duty of the car owner to insist for a warranty at the time of taking the car delivery.
The auto warranty covers repairs and maintenance of the vehicle relating to its power train, drive train, engine, steering system and brake mechanism. However, the warranty does not include the cost of replacing faulty spare parts of the car. It has to be borne by the vehicle owner.

In warranty, there are two types. The first type of warranty is the original warranty meant for brand new vehicles. The second type of warranty is the aftermarket warranty, meant for the used vehicles.

The warranty is offered for a period of time, ranging from three months to three years from the date of sale of the vehicle. It is also offered on the basis of mileage covered by the car. It ranges from 3000 kilometers to 30,000 kilometers.