Warranty is an assurance given by a product manufacturer to repair and service it for a prescribed period of time from the date of its sale. During this period, the cost of repairing the product and replacing the faulty spare parts will be the responsibility of the product manufacturer. The warranty is serviced by the product dealer on behalf of the manufacturer. If there are any genuine manufacturing defects affecting the performance of the product, the manufacturer is bound to replace the entire product. The warranty has been evolved under the US law to protect the interests of consumers apart from providing them with value for money. Warranty is issued to all products, including automobiles. The warranty issued to automobiles is called auto warranty and it ensures care for the car.

The auto warranty is of two categories. The first category is called new car warranty and it is issued to brand new cars. The second category is called after-market warranty or used car warranty and it is issued to used cars or preowned cars. The used car warranty is costlier when compared to the new car warranty considering the wear and tear a used car has undergone. Never forget to purchase a warranty for the car.