A warranty is an assurance given by a product manufacturer to safeguard the product for a period of time from the date of its sale. It includes repair and maintenance of the product without passing on the financial burden to the consumer. It also involves replacement of faulty spare parts. However, the cost of replacement of certain parts is not covered under the warranty. Warranty is offered to a host of consumer products, including cars. The warranty issued to cars is called auto warranty. Any auto warranty is considered care for the car.

The auto warranty is issued by the auto dealer in association with the auto manufacturer. It covers the repair and maintenance of the car’s drive train, and engine. However, the repairs and maintenance will not be carried out for free if the warranty period, which normally is for two years, expires. Besides, the replacement of spare parts and accessories damaged in accidents cannot be claimed. The auto warranty comes in two formats. The first format is the used car warranty issued to pre-owned cars. It is also called as after-market auto warranty. The second format is the new car warranty, issued to new cars.