The manufacturer of a product provides warranty which is a promise to bear the costs of the product’s defective parts, replacements of the spare parts, and the maintenance and repair costs under the warranty time period from the time of purchase of the car. This is called warranty period. Within the warranty period, the car dealer provides repair as well as service without any charge. This is all done to satisfy the customers and make them understand that their money is well spent. Their aim is to safeguard the customer’s interest. For automobiles, the warranty is issued on all type of products and it is known as auto warranty.

There are mainly three types of auto warranty. They are long-term warranty, short-term warranty, as well as lifetime warranty. The short-term warranty is issued for only three months where as long-term warranty is given till the vehicle is dragged for scrap. Lifetime auto warranty is very expensive because the repair costs are calculated till the vehicle can no longer be used. Lifetime warranty is normally offered to specific cars such in the luxury category because these cars need extra care. This warranty is not for mid sized cars and low end cars.