All consumer products, including automobiles, have to be sold with a warranty. The warranty ensures value for money for the customers. It also means that the product manufacturer has to repair and maintain the product for free for the customers. All companies are bounded under law to provide warranty. No product can be sold without a valid warranty. It amounts to unethical business practice. While purchasing an auto warranty, watch out for false promises featuring in the warranty.

It is advised that all vehicle owners learn some aspects of the law governing the auto warranty. There are two types of auto warranty. They are new car warranty, issued to brand new cars and used car warranty, issued to used cars or pre-owned cars. The used car warranty is also called as after-market auto warranty. There are separate laws governing both categories of warranties. There are a number of used car warranties, which come with plenty of false promises. There is a special law to protect the used car owners from such warranties. It is also called lemon law. Under lemon law, used car owners can drag the auto warranty agent before the authorities concerned if the services promised are not delivered.