There are many situations in which having a transferable auto warranty will be important for motorists.
This is especially true since many auto warranty packages are non-transferable and end when a new person becomes owner of the car. If the new person is a friend or someone in the family, this loss is unfortunate since it’s so useful. There are a few different types of car warranties and a few different situations to consider when dealing with them. Take a look at BestReviewsHub as they compare the top auto warranty companies: http://www.bestreviewshub.com/extended-auto-warranty/.
Manufacturer Warranty Transfers
There are some warranties that qualify for transfer and some that don’t. Even those that do qualify will often require both buyer and seller to go through some paperwork in order to make it all work out. In the beginning, with manufacturer warranties on new cars, this is a lot less complicated. This is especially the case if the buyer is purchasing a car that still has a bit of the manufacturer’s new car warranty left on it. Transferring this warranty to the ownership of the new buyer along with the car is a straightforward process. In many cases, the seller can use the fact that the car is still under new manufacturer warranty as an excuse to mark up the cost of the vehicle. They can also often use it as a way to highlight just how new the car is.
Car manufacturers have databases on the national level that have a complete listing of warranties associated with each individual car as listed by the car’s VIN number. The warranty in the database is connected to the vehicle and the VIN, and not the owner. The warranty just ticks down for each car. Whoever owns the car will generally own the warranty as long as it doesn’t automatically expire due to a transfer in ownership. Sometimes this will follow time, but it might also follow miles. If the warranty is for 30,000 miles, and the previous owner used 10,000, then the new owner will get the remainder or 20,000 miles which is the remainder of the warranty.
Aftermarket warranty transfers refer to those that companies besides the original car manufacturer sell. So, they can add warranties after the car has been initially sold. Obviously, not all of these warranties are transferable, but there are plenty that are. It’s important to look in the warranty contract to determine whether this is the case or not. Most of the time, an aftermarket vehicle warranty with a transfer option is added in order to make it more likely that people will buy the extended warranty. After all, you probably won’t be interested in buying warranties that last for a considerable amount of time if they only apply to you and go away as soon as you transfer ownership of a car. These auto warranties will always cost a little bit more than those that can’t be transferred.
Overall, it’s a good idea to check car warranty reviews for specific aftermarket companies before relying on their warranty so you have a better sense of what they offer and what the loopholes and drawbacks are. This will help you make a more informed decision.