All vehicles, brand new or used, are entitled to a warranty, an assurance to replace faulty spare parts. The warranty is a joint assurance given by the vehicle manufacturer or dealer. In case the vehicle develops a defect during the warranty period, it has to be rectified by the dealer at no cost. The auto warranty period normally exists for a period of two-three years from the date of the sale.

The auto warranty period is also extended on the basis of the distance covered by the vehicle from the date of the sale, such as 30,000 miles or 50,000 miles, whichever is first in the two year period. There are two types of auto warranty. They are new car warranty and aftermarket auto warranty. New car warranty is meant for brand new cars while aftermarket auto warranty is meant for used cars.
Aftermarket auto warranty is priced higher considering the age of the vehicle. While purchasing an aftermarket auto warranty, beware of fraudulent warranty. Such warranties promise plenty of features, but fail to deliver. Review at least five aftermarket auto warranties before settling for one. All car owners are protected against fraudulent auto warranty. Take care to ensure that you have a genuine warranty for the car.