Auto warranty is an assurance given by the vehicle manufacturer to repair and maintain the car for a specified period of time. Under the auto warranty, replacement of spare parts and repairs of the car will be met by the car manufacturer. Normally, replacement of inexpensive spare parts is carried out by the vehicle manufacturer without levying any fee on the customer. This is a strong business practice that has gained ground in all developing countries. Any product that does not come with a warranty is not considered to be customer friendly. There are several types of auto warranty. The major among them are short term warranty, long term warranty and lifetime warranty. 

Short term auto warranty refers to warranty issued for shorter periods such as six months to one year. Long term auto warranty refers to longer periods like three years to four years. Lifetime warranty refers to warranty issued for the entire life of the car, for up to 10 years. The warranty will exists till the life of the car exists. Normally, the lifetime warranty is expensive since the premium paid every year is higher. The lifetime warranty is usually issued to only luxury and high end cars whose customers are of great value to the car manufacturers.