A warranty offers protection and peace-of-mind when driving a new or used vehicle. An extended warranty expands on that protection and helps make sure that drivers can continue using their vehicle for years to come. A major benefit of extended warranties is that they can often be transferred from one owner to another, which is a nice perk if you ever decide to sell off your car. Transferring a warranty can increase the value of the vehicle, and make finding a buyer easier as well. Therefore, understanding the transfer process can be a great help.
Transferring an Extended Warranty
Here are the simple steps involved in transferring a warranty from one owner to another.
Contact the warranty company - Inform the company managing the warranty of the upcoming sale.
Complete necessary paperwork - Fill out a warranty transfer form that details who the new owner is.
Vehicle history - Provide a history or service report that confirms proper maintenance.
Document the sale - Provide bill of sale or a copy of the title to confirm the transfer.
Get an inspection - Have the vehicle inspected to show that the warranty is still in effect.
Pay the fee - Submit any monies required to complete the transfer.
Most warranties can only be transferred for a limited time after a vehicle sale. Make sure to take care of the transfer as soon as possible avoid any problems with the transfer process.
A Non-Transferrable Warranty
Some warranties can’t be transferred. This possibility should be factored in before buying a warranty. Since the ability to transfer a warranty can increase resale value, it's a feature you want to have.
To protect the value of future resale, it is important to keep the warranty in effect. Below is a set of instances where warranties can be voided, rendering them non-transferable:
- Repairs made with non-factory, aftermarket parts
- Repairs completed by an unauthorized mechanic
- Regular maintenance tasks not completed properly or on time.
- Misuse of the vehicle
- Transfer attempted beyond the time limit
- Attempt by owner to transfer the warranty to another vehicle of his own
Options for Non-Transferable Warranties
When a current warranty is non-transferable, there are a few options available. If there are warranty issues at the time of sale, the seller can choose to cover the repair costs out of pocket. The second is to obtain a third-party extended warranty that is transferrable. Both options are more expensive than relying on the original non-transferable warranty, but they may result in a higher price for the sale, making the extra effort worth it.
Not every warranty is transferable, and it is important that those that can be transferred are not voided prior to resale. Know the terms of your warranty and follow its requirements carefully so that you can enjoy a better profit when it's time to sell.