Auto warranty is an agreement executed by the auto dealer on behalf of the vehicle manufacturer to repair and maintain a car for a specified period of time. During this period, the auto dealer will repair and replace the faulty spare parts without levying any fee on the car owner. Under the US law, all consumer products have to be sold with a warranty. The same applies to the automobile industry also. Any genuine manufacturing has to be rectified by the auto dealer during the warranty period. However, some expensive spare parts cannot be replaced under the warranty. Similarly, accessories and spare parts damaged in accidents cannot be replaced under the auto warranty.

There are two categories of auto warranty. The first category is the new car warranty, issued to all brand new cars. The second category is the used car warranty, issued to pre-owned cars or used cars. The used car warranty is also called aftermarket auto warranty. When compared to new car warranty, the aftermarket auto warranty is costly considering the age of the car. The auto warranty is offered by the auto dealer and a detailed plan is offered at the time of delivering the car. Check with the dealer for more information.