Once the purchase or sale transaction has been completed, the documents pertaining to the car – such as registration, insurance and the auto warranty must be handed over to the new buyer. The person who is making the purchase should make sure to take the warranty details, and also check with the dealer or manufacturer if they have an extended warranty option. This is when the seller would give an extended period warranty for an additional charge. The coverage for repairs could be anywhere from 6months to couple of years varying with car models and year of manufacture. This ensures that any mechanical or operational problem that occurs will be taken care of free of charge

The Auto warranty also entitles the buyer to touch base with the manufacturer in case of any fault he comes upon in the vehicle after the purchase. This takes care of failure due to wear and tear; accidents that damage the exteriors and interiors and any engine related failures. Also covers some of the other issues that could happen over the years. This warranty is almost similar to an agreement entered between the parties in writing that certain repairs will be taken care of.