An Auto warranty is an agreement between a car owner and dealer executed by the auto dealer. Under auto warranty, the auto dealer is responsible for repairing and maintaining the vehicle for a period of time as specified in the agreement. The repair and maintenance cost will be borne by the auto dealer. If there are any genuine manufacturing defects, the spare parts concerned will be replaced. However, the auto warranty does not take care of the cost of the replacement of expensive spare parts. Similarly, accessories and spare parts damaged in accidents cannot be replaced under the warranty. 
An auto warranty period normally lasts for up to two years. During this period, the car owner need not pay any fee for repairs or maintenance. The concept of auto warranty was evolved to protect the interests of customers and to give value to their investment in the product. Warranty is offered to all categories of vehicles. Auto warranty is available for both new cars and used cars. The warranty given to new cars is called new car warranty. The warranty given to used cars is called used car warranty. The warranty given to pre-owned cars is also called as aftermarket auto warranty.