Car warranty refers to repair and maintenance of the vehicle, for a period of time from the date of sale, undertaken by the auto dealer in association with a third party vendor. It basically covers the cost of repair and maintenance of the car. However, it does not cover the replacement of expensive spare parts of the vehicle. There are two types of car warranties. They are new car warranty and used car warranty. 

New car warranty is used by dealers for brand new cars released from the showroom. The warranty covers most of the important parts of the car like power train, brake mechanism, steering system, drive train and engine. The new car warranty comes in various packages. It is offered either on the basis of the mileage of the car or for a specified period of time. The packages come between 3,000 kilometers and 30,000 kilometers or between three months and three years. The package can be customized according to the specifications of the customers. 

There is another type of new car warranty called bumper-to-bumper warranty. It completely takes care of the entire car’s maintenance for its total life. However, it is better to opt for a flexible package since it offers the freedom of changing the warranty in case the service provided is deficient.