A warranty is a repair and maintenance service rendered to a car by a dealer in association with the car manufacturer and a third party vendor. The warranty is issued at the time of delivering a brand new car or a used car from the showroom. The warranty takes care of the cost of the replacement of minor spare parts. The warranty does not take care of the cost of the replacement of expensive spare parts. There are two categories of warranties. The new car warranty is issued to brand new cars while the used car warranty is issued to pre owned cars or vehicles sold in the aftermarket.
While purchasing a used car warranty, watch out for fraudulent warranties, which are in circulation in the market. The US government has created a special law to protect car owners against fraudulent warranties. It is called the lemon law. If the dealers sell fraudulent warranties, which promise undelivered features, they are liable to be punished under the law.

A used car warranty is expensive when compared to a new car warranty since the risks involved are several. Therefore, be careful while purchasing a used car warranty. Review at least five different warranty offers before purchasing the warranty. Consult an auto dealer before purchasing the used car warranty.