All products, irrespective of the manufacturer, are liable for replacement if found defective with a specified period of time from the date of its sale. The product may be replaced in full or in part depending on the nature of the defect. This practice is called warranty is a recognized business process. Any business process without the involvement of warranty is generally considered to be poor. Warranty is offered to a whole range of consumer-oriented products, including cars. The warranty issued to cars is called auto warranty. It is also known as vehicle warranty. 
There are two types of auto warranty and they are new car warranty and aftermarket auto warranty. New car warranty is issued to brand new cars while aftermarket auto warranty is issued to used cars and pre-owned cars. The aftermarket auto warranty is costlier when compared to brand new cars considering the age of the car and the risks involved in extending warranty to such vehicles. 
Auto warranty is issued by the car dealer in association with the car manufacturer and a third party agent. The warranty also takes care of the cost of the replacement of the defective spare parts. However, it does not take care of the cost of the replacement of spare parts and accessories damaged on account of road accidents.