Any car that is on the road is eligible for repair and maintenance from the dealer for a fixed period of time. This service is called auto warranty. The dealer will take care of the repair and maintenance of the car, but is not responsible for replacement of expensive spare parts. Only those spare parts, which are covered under the warranty, are eligible for replacement. In auto warranty, there are two categories. The first category is the new car warranty, which is issued to bran new cars. The second category is the aftermarket auto warranty, issued to pre-owned cars or used cars.

According to the US law, all dealers have to necessarily issue aftermarket auto warranty to used cars. If this rule is not followed, used car owners call pull the dealer to the court of law. Aftermarket auto warranty takes care of the vehicle’s drive train, power train, engine, brake mechanism and steering system. This comes under the basic form of warranty. There is another form called bumper-to-bumper warranty, which takes care of the vehicle end-to-end. This is called a comprehensive warranty. Therefore select the aftermarket auto warranty carefully. Review at least five different forms from third party vendors before finalizing the warranty.