Used car warranty refers to an assurance given by vehicle manufacturers in association with dealers under which faulty spare parts are replaced within a specified period of time. The warranty period is decided by the car manufacturer for new car warranties. However, in the case of warranty for used cars, the period can be fixed by the vehicle owner. The period will be worked out by the agency in association with the vehicle owner.

The used car warranty, also called as after-market auto warranty, is priced higher when compared to new car warranty. This is so because the risks of servicing an aged car are greater when compared to a new car. As a consequence of this, a number of fraudulent warranties, with empty promises are in circulation. While purchasing a used car warranty, exert utmost care. Always opt for a genuine warranty. It is advisable to consult an expert before obtaining the warranty.

The US government has evolved a special law to protect car owners from falling prey to fraudulent used car warranties. This law is also called as lemon law. Review at least five different warranty offers from agencies before selecting one. Insist for various warranty offers with the dealer since it is your right.