How to transfer a car warranty to a new owner (2021)


Have you decided to sell your vehicle but don’t know how to transfer an automobile warranty to a new owner? Fortunately, most auto warranties are transferable between sellers and buyers, and the process of transferring coverage is easier than you might think.

In this article, we’ll look at how to transfer a car warranty to a new owner and why you might want to do it – whether it’s a Factory, Aftermarket, or Certified Pre-Owned (CPO ). We’ve also reviewed the best extended warranty companies so you can compare vendors and buy a protection plan that could increase your vehicle’s resale value.

In this article:

How to transfer the warranty of a new car to a new owner

A new car comes with a manufacturer’s warranty – also known as a factory warranty – that lasts for a set number of years or kilometers. But let’s say you decide to sell the vehicle before this warranty expires. You may be wondering: is the factory warranty transferable?

Typically, any kilometers or time left on a used car’s factory warranty will pass to the next owner. This is because the manufacturer’s warranties are associated with the vehicle’s Vehicle Identification Number (VIN), and not with 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 two years old and has 28,000 miles, you still have coverage that may accompany the resale of the vehicle. car. Warranties such as a Toyota warranty and a Kia warranty offer similar transfer capabilities.

Buying a car with a manufacturer’s warranty has its advantages, but even the best new car warranties are limited and some car manufacturers don’t offer the option to transfer. Once you run out of miles or time, you are responsible for the full cost of repairs.

How to transfer a CPO car warranty to a new owner

A Certified Pre-Owned Vehicle (CPO) is a vehicle that has been inspected by the manufacturer and certified in perfect condition. These used vehicles tend to be newer, low mileage cars that the dealership has taken back for resale.

CPO cars often come with separate manufacturer warranties from dealerships, but work the same way. So if you put your CPO car up for sale, this type of warranty will usually carry over if it meets the odometer and time limits.

For example, you can transfer a Ford CPO warranty to future owners at no additional cost. However, not all manufacturer backed CPO vehicle warranties are transferable, so contact the automaker to be sure.

How to transfer a third party car warranty to a new owner

Your original car manufacturer’s warranty does not last forever. Having an aftermarket auto warranty through a third-party supplier is a good way to give you some peace of mind after your manufacturer’s coverage expires. This is certainly the case if you missed the window to add a dealer backed extended warranty plan.

It is especially wise to extend your coverage with a third party warranty if you plan to sell your car in the future. Placing a car on the market with third-party coverage usually increases its purchase price and helps publicize the vehicle. Overall, an extended warranty – whether from the manufacturer or a third-party vendor – is a great selling point if you can transfer the warranty.

For buyers, buying a car with a service contract included in the price is easier than having to find a warranty company on your own. Buying a vehicle with a used car warranty also provides the peace of mind that the car will be protected if something goes wrong with a key component. The major extended warranty companies offer additional benefits such as roadside assistance which are also included in the warranty transfer.

It is important to note that transferring the bumper-to-bumper or powertrain cover from an independent third-party supplier is different from a transfer from the manufacturer. Since the original owner most likely customized their third party coverage plan with a deductible and monthly payment options to meet their needs, what is included in the warranty may 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 notify the warranty provider of the sale of the car. the car. Usually this must be done within 30 days.

If you have decided to transfer your car warranty to a new owner, you should start the process by checking if you have factory coverage, extended factory coverage, or third party warranty coverage. independent always available. Call your dealership or warranty company and give them your car’s VIN to find out what’s left in your maintenance plan and to make sure you can transfer the plan.

The buyer is also involved in the transfer process, giving the warranty provider their basic contact details and sale information. Change of ownership documents such as receipts and records are required.

As you will see in Endurance warranty reviews and CARCHEX reviews, third party protection plans usually come with higher maximum term limits, so it may be easier for you to transfer a contract from an independent supplier.

The cost of transferring car warranties

It is common for a manufacturer or a third party company to charge a fee for transferring a vehicle maintenance contract to a new owner.

There is no standard transfer rate, but these fees can go up to $ 100. The best companies and dealers charge little to no transfer fees. Before starting the selling process, it is a good idea for the current owner and the potential buyer to confirm if a transfer fee is required.

Best Recommendations for Extended Transferable Car Warranties

We recommend that you get quotes from several companies and compare your car warranty options. Our review team looked at all of the industry’s leading extended auto warranty providers, looking at plan options, costs, customer reviews, and more. Based on this, we found Endurance and Olive to offer two of the best extended warranties in the aftermarket.

Both companies offer the option of transferring your service contract if you sell your car.

Endurance is our # 1 ranked extended warranty provider. The company offers direct-to-consumer plans, which means all complaints and services are handled in-house. Drivers may appreciate Endurance coverage for high mileage vehicles, making 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 breakdown. The latest Endurance plan, EnduranceAdvantage â„¢, includes an extended automobile warranty, as well as maintenance services such as oil changes and tire rotations.

Based on Olive’s auto warranty reviews, it seems that a 21-year vehicle service contract from this supplier is ideal for drivers who prefer subscription billing which gives them the option to cancel at all. moment. Olive has plans available in all 50 states, and there is no waiting period for coverage.

Olive offers a trio of protection plans and can cover vehicles up to 3 years / 185,000 miles. All plans include reimbursement for the rental car as well as reimbursement for towing for each breakdown. With Olive, you can transfer a car warranty to a new owner at no cost.

Frequently Asked Questions


In an effort to provide accurate and unbiased information to consumers, our team of experts collects data from dozens of extended auto warranty companies to formulate rankings of the best suppliers. Companies receive a rating in each of the following categories, as well as an overall weighted rating out of 5.0 stars.

  • Industry Ranking: Warranty providers with a history of solid business practices and expert approvals receive the highest scores in this category.
  • Blanket: This rating is based on the types of extended warranty plans available, the terms of coverage, and additional benefits such as roadside assistance.
  • Cost: Our research team examines sample quotes for a variety of plans and vehicles. Companies with lower prices per year of coverage receive higher scores.
  • Transparency: This score takes into account the transparency of the contract and the availability of a money-back guarantee.
  • Customer service: We comb through customer reviews and do our own buyer analysis to get a feel for how responsive and helpful each warranty company is.


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