The term ‘after market’ is related to the replacement of the parts of the vehicle. It is known fact that the USA alone has the aftermarket business of $255.2 billion.

The growing popularity of the aftermarket auto warranty is linked to many reasons. The question of the customer’s comfort, safety to their pocket money or accidental discomforts due to the defects in the car can be guaranteed by this market mechanism. Extended service warranties can benefit the car owners in the time of severe damages and in the cases when the vehicle is out of the warranty guaranteed by the original manufacturer.

It is a true fact that the warranty never caused any financial lose to the auto-dealers. Instead they take out extra profit out of it. The auto-manufactures generally sell the warranties at a profit-making margin maintaining the market demands.  Before fixing up the actual cost of repairs for old and new vehicles, the company usually does in-depth analysis on that and on that basis generally announces the rate of warranty.
In case of an aftermarket auto warranty, the manufacturing factory never determines the warranty. Instead, it is the dealer, which directly gets involve. One may not get the value of his invested money in after market warranties, but it does support in long terms.