Warranty is an assurance given by a product manufacturer to repair and maintain it for a period of time from the date of its sale. The warranty is executed by the product dealer on behalf of the manufacturer. When the warranty is in operation, the cost of repairing and maintaining the product is the responsibility of the product dealer. Under US law, all consumer products have to be sold with the warranty. The warranty is also issued to automobiles and it is known as auto warranty. There are two types of auto warranty. They are new car warranty and used car warranty.

The new car warranty is given to brand new cars and has a number of features. Under the new car warranty, the repairs and maintenance of the drive train, engine, break mechanism, power train and the steering system is the responsibility of the auto dealer. The second category of car warranty, the used car warranty, is also known as aftermarket auto warranty. The used car warranty is generally issued to pre-owned cars. The price of a used car warranty is higher when compared to a new car warranty in view of the wear and tear the car has faced.