Top Benefits of Car Warranty Transfer

By January 8, 2021 No Comments

Do you own a car but want to sell it? Well, potential buyers will have some questions for you in this case, with an important one being linked to the warranty. Most new cars sold by credible automakers come with reasonable coverage, but what happens if you are selling a used car to someone. Is the car warranty transfer achievable in this case?

You might have a similar question if you are buying a used car from someone. In short, having the assurance that your car is being covered by a warranty can make your life more peaceful. And in this article, we will be discussing some important topics pertaining to the transfer of a car warranty.

What you should know about a car warranty? 

There are numerous types of car warranties. The most common one is the new car warranty or the manufacturer’s warranty. This type of warranty covers certain repairs and parts for a specific number of years or until a certain number of miles has been driven. A new car warranty comprises:

Bumper-to-Bumper Coverage: It covers most parts of the car except for those that wear out over time such as brake pads and tires.

Powertrain Coverage: Tasked with taking care of repairs pertaining to the parts that get the car moving such as the engine, transmission, etc.

It’s important to note that different automakers offer different types of warranties and that means a new car warranty from automaker A might not cover some parts that are included in the warranty offered by automaker B and vice versa. Therefore, make sure to read the warranty contract carefully.

Since the new car warranty has a shelf life, many car owners resort to getting a used car or extended warranty. Such coverage can be purchased via your vehicle’s automaker or a third-party provider. An extended warranty is different from the factory warranty and might not provide coverage for certain parts. In order to buy such coverage, you might also be required to pay a deductible in order to activate your warranty.

Is it possible to transfer a car warranty? 

Yes, it is possible to transfer the car warranty to the new owner but there are certain things that should be accounted for.

For starters, whether a car warranty is transferable or not depends strictly on the contract that you have signed with the dealership or the third-party warranty provider.

When it comes to the manufacturer’s or the new car warranty, it can be transferred from owner to owner without many obstacles.

So, consider, for example, your new car came with a three-year/36,000 miles’ bumper-to-bumper warranty and you have had the vehicle for roughly a year with 27,000 miles left on your warranty. In many cases, the new owner of your car will be qualified to avail of the full remaining coverage. So, when putting up your car for sale, make sure to mention that it comes with a lucrative warranty.

So, a new car warranty is fairly easy to transfer. In many cases, documentation (linked to car warranty transfer) isn’t even required.

When it comes to transferring extended auto warranties, you will need to do a bit more work. From surplus charges to extensive documentation and critical deadlines, transferring an extended warranty can prove to be a chore. It should also be noted that certain third-party warranties can’t be transferred at all and expire right as the vehicle gets transferred from one owner to the next.

Benefits of transferring a car warranty

If you are planning on selling your vehicle and it is covered by either the manufacturer’s warranty or an extended auto warranty, there are tons of benefits for both the buyer and seller. Some of these benefits are listed below:

  • As per AAA, owning a car covered by a reasonable warranty can boost the resale value of your vehicle. In such cases, you don’t need to worry about finding potential buyers because a warranty on a used car is an attractive feature that makes your car hard to pass. So, not only can you find a buyer for your vehicle sooner, but you can also price it pretty reasonably.
  • As for the buyer, the main perk of getting the warranty transferred is that they can drive peacefully, knowing that many crucial parts of the car, as well as, certain repairs will not empty their pockets.
  • In many cases, transferring a new car warranty is as easy as a walk in the park. Since the warranty is linked with the unique VIN number assigned to the car, the coverage remains unaffected no matter how many times a car gets transferred, as long as the warranty’s coverage quota remains unfulfilled.


It’s not unusual for one to switch cars every few years. But when you put up your vehicle for sale, the interested buyers will have some concerns since they would be considering buying a used vehicle. In such cases, mentioning that the car comes with an attractive warranty might serve as a deal-making factor.

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