Warranty is a service rendered by the vehicle dealer in association with a local firm towards the maintenance of the car or any vehicle. Usually, a warranty is considered as the life insurance of a vehicle.

What the warranty basically does is takes care of the repair and maintenance costs of the vehicle for a particular period of time in case it suffers a breakdown. The warranty covers repairs relating to the drive train, power train, steering system, and engine However, it does not cover the cost relating to the replacement of defective spare parts.

Once the car is placed in the ‘used car market’, the warranty is no longer valuable after its original period expires. While purchasing a used car, make sure that the warranty has not expired. According to the rules, a dealer cannot sell a used car without issuing a fresh warranty.

There have been instances of fraudulent warranties being issued to owners of used cars. Such actions are liable for punishment. The Used car law is also known as the lemon law because of its flexibility. The used car law differs from state to state. However, one common feature to the used car law in all the states is the protection offered to the car buyers.

At the time of purchasing the used car, a customer can exercise his or her right to purchase a warranty of his or her choice.