As per US law, any product has to be replaced if it is found defective within a specified period of time from the date of its sale. The entire product or parts of it are also replaced if they are found to be defective. This service is called warranty is a generally acceptable term in the business circles. All consumer oriented products come with a warranty. Similarly, warranty is also offered to a whole range of vehicles, including cars. There are two categories of auto warranties. They are new car warranty and aftermarket auto warranty.

New car warranty is issued to brand new cars released from the showrooms. Aftermarket car warranty is issued to used cars or pre-owned cars. The price of aftermarket auto warranty is higher when compared to a new car warranty considering the age factor of the vehicle. Watch out for fraudulent warranty, which is in circulation for used cars. These fraudulent warranties offer a plethora of features, none that are fulfilled.

Aftermarket auto warranty is issued on the basis of two factors. The warranty comes for a period of up to two years from the date of sale. The warranty is also applicable for upto 30,000 miles covered by the vehicle.