Transferrable Extended Car Warranties


Extended Warranties are amazing during the resale process of the car. Even a few months to half a year of warranty remaining gives the buyer signifcantly more comfort in purchasing your used vehicle. Since the used car market is extremely saturated, if you have extended car warranty on your vehicle that is transferable, you will be able to sell your car much easier.

Transferrability of extended warranty is negotiated and stated on your contract. Some extended warranties are transferrable and it is completely up to the corporate policy and terms of your contract.

If you are unsure of how long you will be keeping the vehicle for and considering a longer covergae term, definitely discuss for transferrability to be added to you contract. Ideally you want to aim for no cost increase. You could potentially say something along the lines of, giving the car as a gift to your son in 2–3 years, and you want to make sure he can claim any issues should they arise.

Transferrable Extended Warranties Voided

Typically extended warranties that were once transferrable and are no longer falls under certain exclusions in the contract.

Manufacturer Warranties

Most manufacturer warranties are transferrable and much easy to move over to the new car buyer. However, there are clauses in the warranty that may be modified when a second owner takes over. For instance, Hyundai and Kia have has the coverage term and coverage kms decreased when the car has been sold to someone else.

It is important to look into how the manufacturer warranty may change when you purchase a vehicle, especially if your decision hinged on the warranty carrying over.

You may be unable to transfer the vehicle if:
1. Unapproved aftermarket modifications to the car were made

This is to protect the integrity of the vehicle, if you had the vehicle lowered or installed aftermarket shocks, tires and rims. They can no longer gaurantee the reliability of the vehicle under their extended warranty arrangement and your contract may be void or untransferrable.

2. Transferring to a Different Vehicle

Different vehicles have different extended warranty contracts. Transferrability of an extended warranty doesn’t mean that you can transfer it to another car, it means that it can be transferred to the next car owner. Attempts to transfer it to a different vehicle than what was initally in the contract is not possible.

3. Failure to conduct proper mainteance as stipulated in the contract

Proper maintenace is required to ensure that the vehicle has a good chance to maintain it’s reliability. Failing to do proper maintanance puts the fault in the owners hands and can constitute a cancellation of your contract or the denial for the warranty to be transferred.

4. Improper use of the vehicle

Typically using a vehicle improperly can cause structural damage to a vehicle and impacts the reliability such that an extended warranty company won’t stand behind it anymore. Use such as towing above load, stunt driving or street racing can void the contract or make the warrant untransferrable.

5. Lack of timely repairs and maintenance

When there are issues with the vehicle and you do not immediately act on it, you may void the contract because you are letting an issue persist. This smaller issue can lead to bigger problems, and if it can be proven that you did not repair the vehicle in a timely manner leading to more problems, it can put your contract and transferrability at risk of being voided.

6. Attempts to transfer the warranty outside the allowable period.

Occasionally extended car warranty contracts have an allowable period where you are able to transfer it. Outside this window there is no transferability of your contract.


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