A warranty is an insurance provided by the company to replace the faulty element of the item or the complete item if there are any kinds of manufacturing defects. This assurance usually provided to the purchasers in a written format as well as it is valid only for a particular time period from its date of sale. Sometimes, the period of warranty ranges between 2-3 years from its date of sale. The same regulations and rules apply to the manufacturers of the car also. For vehicles there are mainly two sorts of warranties. They are after-market auto warranty and new car warranty.
For all new brand and latest model cars that are purchased from the superstore, new car warranty is issued and after-market auto warranty is issued for those cars that are used or pre-owned. In comparison to new car warranty, after-market auto warranty is of heavy cost because the danger involved in used and pre-owned cars are greater. There are number of examples of car holder being issued fake after-market auto warranty. The fake warranty consists many features, but they are not delivered.

A special law known as Lemon law is evolved by the US government to protect the car holders from fraudulent warranties.