Auto warranty is an agreement executed by the car manufacturer to replace a part if found defective within a prescribed period of time from the date ot its sale. The auto warranty is just like any other product warranty aimed at protecting the interests of consumers. The warranty is an undertaking to repair and maintain the vehicle at no cost. However, the warranty does not take care of the cost of the replacement of expensive spare parts. Even repairs of some crucial parts of the vehicle will come at a cost. Auto warranty is issued to all kinds of cars.

There are two kinds of auto warranty. They are new car warranty and used car warranty. New car warranty is given to owners of new car while used car warranty is given to owners of used car. The used car warranty is also called as aftermarket auto warranty and pre-owned car warranty. Since the risks of insuring an aged car are more, the price of used car warranty is higher when compared to new car warranty. The auto warranty is issued by the auto dealer on behalf of the car manufacturer. Check with your local auto dealer for more information on packages available.