Transferring an Extended Warranty
So, your car has been a solid performer over the years and still runs well, but you decide it’s time for a splashy, new car. Meanwhile, your neighbor thinks your car would be ideal for his teenage daughter.
The car still has 14 months left on its extended warranty. If you sell the car to your neighbor, will the warranty coverage go with it?
The answer? Maybe.
Unfortunately, with warranties ―especially extended warranties―there are too many variables and exceptions to give a conclusive answer. After all, you can purchase an extended warranty from a dealer or a third-party provider, and each has its own rules.
Of course, having a transferable warranty is an excellent selling point. Think how relieved your neighbor would feel about buying your car if he knew he wouldn’t be facing major repair bills in the near future. That’s why you should inquire about this before you agree to pay for the extended warranty, perhaps using it as a deciding factor in determining which warranty to purchase.
The good news is that many extended warranties can be assigned. Just check with the provider to be sure. In some cases, you may have to authorize the transfer in writing, or perhaps pay a small transfer processing fee.
If you’re buying a car that comes with a transferable warranty, don’t just trust the owner’s word. Warranties can be confusing, and the owner may have misunderstood the policy. So, verify the information with the warranty provider before you buy the car, and promptly take care of any required paperwork.