A warranty is a service under which the repair and maintenance of a vehicle will be carried out by the auto dealer in association with the car manufacturer for a period of time from the date of its sale. Any spare part if found defective during this warranty period has to be replaced without charging any fee by the auto dealer. But the warranty does not take care of the cost of the replacement of certain parts. Auto warranty is issued to both new cars and used cars.
The warranty given for used cars is called aftermarket auto warranty or used car warranty. The warranty given for new cars is called new car warranty. The used car warranty is expensive when compared to new car warranty considering the age of the car and the risks involved in insuring it. Consequently, there are a number of fraudulent warranties in the used car segment. Beware of a fraudulent warranty whenever you are purchasing a used car. Fraudulent warranty normally has plenty of features that are often not delivered. The service provider will levy a high fee, but may fail to render the features mentioned in it. Such a warranty is called fraudulent warranty.