How To Transfer A Car Warranty
Ready to sell but not sure what to do with your remaining car warranty coverage?
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Motor1 Reviews Team Take:
- Most new vehicle factory warranties transfer directly to subsequent vehicle owners, however some transfer with reduced coverage or may not be transferable.
- While many reputable companies charge little to no transfer fee, some companies may charge as much as $100 to transfer warranty coverage to a new vehicle owner.
- Reach out to your vehicle dealership or warranty provider to inform them of the vehicle sale or initiate the warranty transfer.
You may have already decided to sell your vehicle but don’t know how to transfer your car warranty to a new owner. Luckily, most car warranties are transferable between sellers and buyers, and the process of transferring coverage is easier than you might assume.
In this article, we’ll look at how to transfer a car warranty to a new owner and, whether it’s a factory, aftermarket, or certified pre-owned (CPO) protection plan, why you might want to. We’ve also reviewed the best extended warranty companies so you can compare providers and purchase a protection plan that could increase the resale value of your vehicle.
How To Transfer A New Car Warranty To A New Owner
The factory warranty from many automakers is transferable. This type of warranty is connected to the vehicle identification number (VIN), not the owner, and transfers with the sale of the car.
For this reason, there are no extra steps needed when transferring this type of coverage to a new vehicle owner. As a courtesy, you’ll want to provide relevant warranty documentation to the buyer during the sale and inform the servicing dealership of the transfer.
What To Expect When Transferring A New Vehicle Warranty
Typically, the remaining miles or time on a used car’s factory warranty will transfer to the next owner. This is because manufacturer warranties are associated with the car’s vehicle identification number (VIN), not the name of the original owner. For example, if your Honda factory warranty comes with a 3-year/36,000-mile warranty period and your Honda is 2 years old and has 28,000 miles on it, you still have coverage left that can accompany the resale of the car. Warranties such as a Toyota warranty and a Kia warranty offer similar transfer capabilities.
Some automakers do not offer the ability to transfer, so before you list your vehicle for sale with factory coverage as a selling point, be sure to consult your warranty service contract or speak with your issuing dealership.
If you’re shopping for a new-to-you vehicle, a vehicle with remaining factory warranty coverage may seem worth the price. However, while a car with a manufacturer’s warranty has its perks, even the best new car warranties are limited. Once you run out of miles or time, you’re responsible for the full cost of repairs, so don’t pay extra for a factory warranty that will expire soon.
How To Transfer A CPO Car Warranty To A New Owner
A certified pre-owned (CPO) vehicle is one that has been inspected by the manufacturer and certified to be in top condition. These used vehicles tend to be newer and lower-mileage cars that the dealer has taken back for resale.
Like new vehicle factory warranties, many CPO warranties are attached to the car’s VIN and will transfer automatically to a new owner. However, some manufacturers only allow part of the warranty coverage to transfer or none at all. Always consult your CPO warranty guide or reach out to your issuing dealership to ensure coverage and transfer eligibility.
What To Expect When Transferring A CPO Car Warranty
CPO cars often come with separate manufacturer warranties from dealerships but work the same. So if you’re putting your CPO car up for resale, this type of warranty will typically transfer if it is within odometer and duration limits.
However, many CPO bumper-to-bumper warranties are short-lived, lasting as little as three months from some providers. In many cases, CPO powertrain coverage will be what transfers to a new owner.
For example, you can transfer a Ford CPO warranty to future owners at no additional cost. If you sell your Ford after a year of ownership, only the 7-year/100,000-mile powertrain warranty will transfer, since the 12-month comprehensive limited coverage will have expired.
How To Transfer A Third-Party Car Warranty To A New Owner
Since third-party extended car warranties are serviced by different providers, the transfer process may vary. In some cases, a third-party car warranty may transfer with no fees, but other providers charge a fee between $50 to $75 for this service. Regardless, if you plan on transferring your third-party warranty to a buyer, you’ll need to contact your vehicle service provider first.
You may need to provide documentation proving maintenance services as well as a change of registration to complete the transfer.
What To Expect When Transferring A Third-Party Car Warranty
It’s important to note that transferring bumper-to-bumper or powertrain coverage from an independent third-party provider is different from a manufacturer transfer. Because the original owner most likely customized their third-party coverage plan with a deductible and monthly payment options to fit their needs, what’s included in the warranty will vary.
How Does The Car Warranty Transfer Process Work?
In most cases, to transfer a car warranty to a new owner, the current owner of the vehicle will contact the warranty company or dealership to initiate the transfer process or send a letter to let the warranty provider know about the sale of the car. This usually has to be done within 30 days.
If you’ve decided to transfer your car warranty to a new owner, you should begin the process by checking to see if you have factory coverage, extended manufacturer coverage, or independent third-party extended warranty coverage still available. Call your dealership or warranty company and give them the VIN of your car to learn what’s left in your service plan and to make sure you can transfer the plan.
The buyer is involved in the transfer process as well, giving the warranty provider their basic contact information and info about the sale. Change of ownership documentation such as receipts and records is required.
As you’ll see from Endurance and Carchex reviews, third-party protection plans typically come with higher maximum term limits, so you might find it easier to transfer a contract from an independent provider.
How Much Does It Cost To Transfer A Car Warranty?
It’s typical for a manufacturer or third-party company to charge a fee for transferring a vehicle service contract to a new owner.
There is no standard transfer rate, but this fee can be as much as $100. The best companies and dealers charge little to no transfer fee. Before initiating the selling process, it’s a good idea for the current owner and the prospective buyer to confirm whether a transfer fee is required.
Benefits Of Third-Party Warranties
Your car’s original warranty from the manufacturer doesn’t last forever. An aftermarket auto warranty through a third-party provider is a good way to give you some peace of mind after your manufacturer coverage expires. This is certainly the case if you missed the window for adding a dealer-backed extended warranty plan.
We recently surveyed 1,000 drivers with manufacturer extended warranty plans and found that 58 percent would consider purchasing from an independent warranty company next time, while 20 percent would absolutely stick with manufacturer coverage. Most others were not familiar with independent coverage at the time of the survey.
It’s especially wise to extend your coverage with a third-party warranty if you plan to sell your car in the future. Putting a car on the market with third-party coverage typically raises its purchasing price and helps advertise the vehicle. Overall, an extended warranty – whether from the manufacturer or a third-party provider – is a great selling point if you can transfer the warranty.
Benefits For The Buyer
For buyers, purchasing a car with a service contract included in the price is easier than having to find a warranty company on their own. Buying a vehicle with a used car warranty also provides peace of mind that the car will be protected in the event of an issue with a key component. Top extended warranty companies offer additional perks such as roadside assistance that are also included in the warranty transfer.
How To Transfer A Car Warranty: Bottom Line
Limited manufacturer warranty coverage is attached to a vehicle’s identification number, and transfers with ownership of the vehicle. Third-party warranties transfer similarly, but vehicle owners may need to reach out directly to the warranty company to inform them of the vehicle sale. Some new vehicle warranty coverages may not be transferable or may be reduced during transfer.
If you’re interested in finding transferable warranty coverage for your vehicle, our team likes Endurance and Olive.
Top Recommendations For Transferable Extended Car Warranties
We recommend getting quotes from multiple companies and comparing your car warranty options. Our reviews team examined every major extended auto warranty provider in the industry, taking a look at plan options, costs, customer reviews, and more. Based on this, we found Endurance and Olive to offer two of the better aftermarket extended warranties.
Both companies offer the option to transfer your service contract if you sell your car.
Endurance: Best Coverage
Endurance is our number one ranked extended warranty provider, scoring 4.6 out of a possible 5.0, well above the industry average score of 4.0. The company offers direct-to-consumer plans, meaning that all claims and services are handled in-house. Drivers may also appreciate Endurance’s coverage for high-mileage vehicles, which makes it easier to sell your car and transfer your contract.
Endurance offers six plans, five of which are extended warranties with varying levels of coverage to protect against mechanical breakdowns. Among these options is EnduranceAdvantage™, which includes an extended auto warranty, along with maintenance services such as oil changes and tire rotations. This wide range of coverage options and direct warranty services make Endurance our pick for Best Coverage overall.
Our team mystery shopped with Endurance across various car makes and models and found that coverage typically costs between $100 and $140 per month with a $100 deductible.
Olive: Best Value
We give Olive an overall score of 4.4 out of a possible 5.0, with high scores for plan costs, contract transparency, and industry reputation supporting our final rating. Based on our research into Olive car warranty, the company’s subscription-based warranty options, high-mileage coverage, and reimbursement perks make it our pick for Best Value.
Olive has plans available in all 50 states, and there’s no waiting period for coverage. The company offers a trio of protection plans and can cover vehicles for up to 3 years/185,000 miles. All plans include rental car reimbursement as well as towing reimbursement for each breakdown. With Olive, you can transfer a car warranty to a new owner for no charge.
Our team mystery shopped with Olive across various car makes and models and found that coverage typically costs between $30 and $80 per month with a $100 or $500 deductible.
How To Transfer A Car Warranty: FAQ
Here are some commonly asked questions about how to transfer a car warranty:
Can extended car warranties be transferred?
Generally, an extended car warranty can be transferred to a new owner. The ability for a contract to be transferred does depend on the provider, but the best companies include transferability as an additional perk because it makes a car more attractive for resale.
Do you get a refund if you cancel your car warranty?
In most cases, providers will provide a prorated or partial refund if you choose to cancel your warranty coverage before selling your vehicle. Note that some warranty providers may charge for cancellation or may offer reduced refunds after specific grace periods have ended, so contact your provider for details.
Are bumper-to-bumper warranties transferable?
Bumper-to-bumper warranties are usually transferable. This warranty is the most comprehensive coverage available, so it’s important to look at your contract’s fine print to ensure this plan can be transferred to a new owner. A powertrain warranty is also eligible for a transfer of ownership.
Methodology
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of extended auto warranty companies to formulate rankings of the best providers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Warranty providers with a history of strong business practices and endorsements from experts receive the highest scores in this category.
- Coverage: This rating is based on types of extended warranty plans available, coverage terms, and added benefits like roadside assistance.
- Cost: Our research team reviews sample quotes for a variety of plans and vehicles. Companies with lower prices per year of coverage receive the best scores.
- Transparency: This score takes into account contract transparency and the availability of a money-back guarantee.
- Customer Service: We comb through customer reviews and perform our own shopper analysis to get a sense of the responsiveness and helpfulness of each warranty company.
*Data accurate at time of publication.
