When you buy a vehicle, the auto dealer becomes responsible for its repair and maintenance for free of cost for a definite time period on behalf of the manufacturer. This service is known as Auto Warranty. The auto warranty allows you to get rid of the repair and maintenance cost of the vehicle’s power train, engine, drive train, steering system and break mechanism. The maintenance and repair will be done without any cost during the warranty period, which can be a period of 2 to 3 years depending on the manufacturer.  
Auto warranties are of two categories. One for the used cars and another is for new cars. The used car warranty is also known as aftermarket auto warranty, which is provided to use cars. Brand new cars hold new car warranty by the auto dealer. There is another kind of warranty, which is called bumper-to-bumper warranty. Your vehicle can have a whole life warranty through this warranty. The warranty for new cars is cheaper in comparison with others because the attributes are less. Moreover the car is brand new. The used car warranty is costly because insuring an old car is very risky. Luxury cars get the bumper-to-bumper warranty.