Monday, March 25, 2019

How to Transfer Auto Warranties

How to Transfer Auto Warranties

When it comes time to purchase a new car or sell an old one, check into the car warranty. It may be possible to transfer an existing warranty to your new car or to the owner of your old car. Along with this, you must decipher whether there is sufficient warranty coverage for your car when you purchase it. If needed, a car warranty transfer could be completed.

Typically, manufacturer warranties on new cars will remain with the car, since they are linked by the Vehicle Identification Number rather than the name of the owner. A national database kept by the car manufacturer updates these warranties. Therefore, this type of warranty will automatically transfer with the car. A portion of manufacturer and dealership warranties will not be able to be transferred. This means that any remaining mileage or time will not be able to be utilized by the new owner of the car, if it is sold during the period outlined in the warranty. For this reason, it is wise to determine if a warranty is transferrable. If not, you might consider purchasing an aftermarket auto warranty through a car warranty broker.

A number of car warranties are non-transferrable. This makes them invalid once a car is sold. Ultimately, the selling price of a car can be lowered because of this. Therefore, read the fine print carefully in a warranty contract to conclude whether it can be transferred. Generally, extended car warranties purchased through third party brokers, in terms of mileage or time, will be transferrable.

In order to transfer a warranty to the new car owner, a letter must be sent to the auto warranty company. In the letter, simply state the sale of the car and provide the name of the new owner. Some things need to be given to the warranty company. Provide the warranty contract, transfer fee and the documentation (records or receipts) of warranty maintenance requirements. Also, supply the car's mileage as it was on the date of ownership change. If you have additional information pertaining to the change in ownership, include it. Any documentation sent to the manufacturer of the vehicle should be photocopied and provided.

Note that an extended warranty could only be transferred to a new owner and not to a new car. An examination of the car by the warranty company may be required prior to transferring of the warranty. Warranties on leased cars are only transferrable to the original lessee of the car. Transfers need to occur within thirty days of the change in ownership. It is a good idea to check with the owner of the vehicle to be certain the transfer has taken place.

Also be sure to talk to your warranty provider about transferring. Your provider may have specific rules or conditions about transferring car warranties that you will need to abide by.


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