Auto warranty refers to after sales service promised by the dealer at the time of delivering the vehicle to the owner. Warranty takes care of the repair and maintenance cost of the vehicle for a particular period of time from the date of its sale. However, the warranty does not cover the replacement of expensive spare parts. With an auto warranty, there are two categories, a new auto warranty and an aftermarket auto warranty.

A new warranty refers to an auto warranty issued to brand new cars released from the showroom. Aftermarket auto warranty refers to the auto warranty issued to used cars or pre-owned cars. As per US law, all dealers of used cars have to issue an aftermarket auto warranty to the car buyer. Violating this law could end in penalty. Therefore, always insist on an aftermarket warranty while purchasing a used car.

The aftermarket auto warranty offers come in two categories. One category is defined on the basis of the mileage of the car. For instance, the warranty can be offered up to 3,000 miles or 30,000 miles covered by the car. The second category depends on the time period of the car. From the date of the sale of the car, the warranty period can be up to three months or three years. It is up to the car owner to choose either of the two categories of aftermarket auto warranty.