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.

There is a growing popularity of the aftermarket auto warranty for many reasons. The question of the customers comfort, cost or accidental discomforts due to the defects in the car can be guaranteed by this market warranty. Extended service warranties can benefit the car owners at the time of severe damages and in the case when the vehicles warranty guaranteed by the original manufacturer has expired.

It is a fact that the warranty never causes any financial loss to the auto-dealers. Instead they make extra profit out of it. The auto-manufactures generally sell the warranties at a profit-making margin to maintain the market demands.  Before determing the actual cost of repairs for old and new vehicles, the companies usually perform in-depth analysis to determine the rate of the warranty.
In case of an aftermarket auto warranty, the manufacturing factory never determines the warranty. Instead the dealer is directly involved with this. One may not get the initial value of his invested money in after market warranties, but it over a long period of time it will pay out.