Auto warranty is a program under which the vehicle manufacturer promises to repair and service the vehicle for up to three years from the date of its sale. This is to ensure that the vehicle owner gets value for the investment made on the vehicle. The auto warranty is serviced by the auto dealer on behalf of the vehicle manufacturer. During the warranty period, the cost of repairing and maintaining the vehicle will be borne by the manufacturer. Similarly, the cost of replacing the faulty spare parts will also be borne by the vehicle manufacturer. However, certain spare parts cannot be replaced under warranty. Similarly, the spare parts and accessories damaged in a road accident cannot be replaced under the warranty. The auto warranty is meant for automobiles, including cars.

The auto warranty takes care of the car’s engine, brake mechanism, drive train, power train and steering system. The warranty period will be in operation for a period of up to three years. When the warranty expires, car owners can extend the warranty by entering into an agreement with the auto dealer. The extended auto warranty can be costlier. However, the costs can be kept down by choosing minimum services. Conduct due diligence before purchasing an auto warranty.