A car warranty is a service, which ensures repair and maintenance of the vehicle for a period of time from the date of its release from the showroom. The car warranty takes care of the repair and maintenance cost. However, it does not cover the replacement of expensive spare parts. There are two types of car warranties. They are a new car warranty issued to brand new cars and a used car warranty issued to pre-owned cars.

As per US federal law, all dealers have to necessarily issue a warranty for used cars. Any violation of this rule will draw penalty. However, at the same time, there are chances of car owners being issued fraudulent warranties. Beware of such warranties. Review at least five warranty offers from different providers. To protect car owners from being cheated, the government has created a law, which is also called a lemon law.

It is better if you to opt for a bumper-to-bumper package since it takes complete care of the car like power train, drive train, engine, steering system and brake mechanism. Opt for a flexible package as you enjoy the freedom to change it if the service is dissatisfactory.