A warranty is a legal binding on part of a product manufacturer to repair or replace the product if found to be defective in manufacturing. Warranty is considered an ethical business practice since it assures customer the value for the product they purchased. If the warranty period expires, the product manufacturer is not obligated to provide free repair and maintenance service of the product. A warranty is offered to all classes of products, including automobiles. The warranty issued to automobiles is called auto warranty. It will ensure proper care for the car. 

The auto warranty is issued to any car, irrespective of its age. However, to secure a warranty, the car should be in a usable condition, as certified by the authority concerned. In general, there are two types of warranty. They are used car warranty and new car warranty. The used car warranty, also called as aftermarket warranty, is issued to used cars or pre-owned cars. The new car warranty is issued only to brand new cars. The used car warranty premium is costly when compared to a new car warranty. Whenever you purchase a car, be it brand new car or used car, insist for a warranty from the dealer. Under US law, all auto dealers have to provide a warranty to the cars.