A car warranty refers to an assurance given by a company to either replace a faulty part of the product or the entire product if there is any manufacturing defect. This assurance is given to the customer in written format and will be valid for a specified period of time from the date of its sale. Sometimes, the warranty period ranges between two to three years from the date of the sale. The same rule applies to car manufacturers also. There are two types of warranties for vehicles. They are new car warranty and after-market auto warranty.
New car warranty is issued to all brand new cars released from the showroom. After-market auto warranty refers to warranty issued to pre-owned cars or used cars. The after-market auto warranty is priced higher when compared to new car warranty since the risk involved is greater. There have been plenty of instances of car owners being issued fraudulent after-market auto warranty. The fraudulent warranty has a number of features, which are not delivered.

In order to protect car owners from fraudulent warranties, the US government has evolved a special law, which is also called as lemon law. All used car owners have lemon law protection in the US states