Warranty is an assurance given by a product manufacturer to replace it in full or just faulty parts if the product is found to be defective for a particular period of time from the date of its sale. Warranty is applicable to all products, including cars and other vehicles. The auto warranty service is normally delivered by the vehicle dealer in association with the manufacturer.
The auto warranty is extended based on the time and distance covered by the vehicle. For instance, the warranty will be in existence from the date of sale of the car up to two years. If the car buyer notices any defect in the car, the faulty spare part will be replaced under the warranty cover. However, the warranty is restricted to certain products only. Sometimes, costly spare parts are not covered under the warranty. There have been instances of the entire vehicle being replaced for faulty spare parts. It is therefore considered life insurance for vehicles.

The auto warranty covers various aspects of the vehicle such as the power train, drive train, brake mechanism, engine and others. Any breach of warranty is liable for punishment under US law. All dealers are entitled to provide warranty to cars sold by them.