A brand new car that is bought from the dealer is covered by the factory warranty. This factory warranty covers the damages or small repairs that are needed by your vehicle within the warranty period. The factory warranty covers your vehicle for a limited time or a predetermined amount of months or years or within a designated amount of mileage. The warranty expires if any one of these conditions is fulfilled. Once this factory warranty expires, you can purchase an extended warranty. This warranty will cover the repair cost of your car for a limited amount of time or a predetermined mileage, whichever comes first. After the original factory warranty expires, you may choose to purchase an extended warranty.

After market auto warranties are warranty programs that are not provided by the factory from which you have purchased the vehicle. You must select a dealer to get these warranties as they can provide you with extended service. Before actually going for any program, do a market research and once you have all your facts, approach the best dealer that will provide you that service. Once you get an after market warranty, then your vehicle is under the recovery plan of the dealer and he will be liable to all the expenses in case of repairs.