Auto warranty is a service executed by the car manufacturer to repair and maintain the vehicle at minimum cost for a period of time from the date of its sale to the customer. The auto warranty takes care of the cost of the replacement of defective parts. However, it does not take care of the cost of certain parts. The auto warranty comes in various segments. They include the new car warranty and used car warranty. While purchasing the auto warranty, beware of fraudulent warranty in circulation in the market. 

While the circulation of fraudulent warranty in the new car warranty segment is minimal, it is extensive in the used car market, which is also known as aftermarket auto warranty market. Normally, there are plenty of customers in the used car market because of the low prices of vehicles. Keep away from attractive warranty that promises a plethora of services. All used car customers are protected under the law against fraudulent warranty. This law, also called lemon law, comes to the aid of customers, who have been given fraudulent warranty. Any auto dealer found issuing fraudulent warranty is liable to be questioned by a competent authority.