A fraudulent car warranty refers to a warranty that comes with a large amount of features and is prices so well it seems too good to be true. However, the seller who is claiming to provide this warranty will not actually provide the services mentioned in the car warranty. In the used car market, fraudulent car warranties come up frequently. This is why it is essential for consumers who are looking to purchase used car warranties to go through the process with caution.

As a result of fraudulent car warranties, the US administration has created a law to protect consumers called the used car warranty law. This law is commonly referred to as the lemon law.