Does the Warranty Transfer to the New Owner If I Sell My Car?

What is a Warranty?

Warranty is a contract that provides coverage for repairs to your vehicle due to defects, as determined by the manufacturer or extended warranty company. It does not cover damage caused by accidents or normal wear and tear. Warranties come in many varieties and can cover the bare minimum to most expensive parts of the car. They typically last for a few years, and can be transferred between owners as long as proof of title change is provided. Having a warranty helps provide peace of mind to both the original owner and subsequent owners, as they know they are covered should something go wrong.

What are the Different Types of Warranties for Cars?

1. Manufacturer’s warranty

A manufacturer’s warranty is a contract provided by the car’s manufacturer that will cover certain repairs within a certain period of time or mileage count. Typically, these warranties are “bumper to bumper” and have very few exclusions. Manufacturer warranties are typically active immediately after the purchase of the car and cover repairs for a specified period of time or mileage. The coverage period is usually 3 years/36,000-miles, 4 years/50,000-miles, 5 years/60,000-miles, or 10 years/100,000-miles. In some cases, the manufacturer may provide an option to expand the original contract, usually in the form of an extended warranty. When buying a certified pre-owned (CPO) vehicle, the CPO car may come with the original coverage plan or the dealer may even extend the coverage or create a new contract. Car warranties cover problems the manufacturer considers defects and kick in when a component doesn’t live up to reasonable expectations.

2. Warranty provided by aftermarket companies

An aftermarket auto warranty, also referred to as an extended warranty, is a service contract that provides additional coverage beyond the manufacturer’s original warranty. This type of warranty is provided by a third-party provider and can be purchased before or after the original manufacturer’s warranty expires. Aftermarket warranties can help give car owners peace of mind and can also be a great selling point, as they typically raise the resale value of the vehicle.

When looking for an aftermarket warranty, car owners should compare quotes from multiple companies and get an understanding of the various plan options, costs and customer reviews. Most aftermarket warranties are customizable and come with different coverage plans that can be tailored to the vehicle and budget. Additionally, many companies offer the option to transfer the service contract when the car is sold. However, there may be various fees, paperwork and time-sensitive deadlines associated with this process.

3. Car manufacturer’s powertrain warranty

A powertrain warranty is a type of car warranty that protects the mechanical parts that move the car and is offered by car manufacturers when purchasing a brand new car. It typically lasts longer than the bumper-to-bumper warranty and is often provided in one of the following categories: 3 years/36,000-miles, 4 years/50,000-miles, 5 years/60,000-miles, 10 years/100,000-miles.

The coverage period and what the warranty covers ultimately depend on the contract itself. Powertrain warranties protect buyers from unexpected breakdowns or factory defects, including components such as the engine, transmission, drive axle, and transfer case.

Generally, powertrain warranties are transferable, so they are often included as an additional perk when reselling a used car. Companies like Endurance also offer third-party powertrain warranties that cover all basic maintenance parameters like oil changes, engine checks, and brake pad replacements, along with additional services like roadside assistance, towing, and rental car reimbursement. These plans may cover cars up to 20 years old and offer different levels of protection such as Preferred, Plus, and Prime.

4. Car manufacturer’s component warranty

A car manufacturer’s component warranty is a contract that covers parts and components of a vehicle that suffer from unexpected breakdowns or factory defects. This warranty typically covers bumper-to-bumper and/or powertrain protection, and the coverage period is specified by the number of years and miles. Generally, the coverage period falls under one of the following categories: 3 years/36,000-miles, 4 years/50,000-miles, 5 years/60,000-miles, or 10 years/100,000-miles.

In addition, car owners may also purchase an extended warranty, which activates once the factory warranty expires or on the day of purchase. This extended contract may come with stricter terms and conditions than a policy through a third-party provider. For instance, having an outside auto repair shop work on your vehicle could invalidate the warranty.

Finally, certified pre-owned (CPO) vehicles usually come with the original coverage plan. However, it is important to note that each CPO program is different, so it is best to check with the specific car manufacturer for more details.

5. Seatbelt warranty

A seatbelt warranty is a specific type of car warranty that covers damage to a car’s seatbelts and airbags. This type of warranty varies from one manufacturer to the other; for example, a new Toyota C-HR comes with a 5-year/60,000-mile warranty on its restraints, while a new Subaru model comes with a lifetime warranty on its seatbelts. The seatbelt warranty typically covers any unforeseen breakdowns within the warranty window, and it is often active immediately after the sale of the car and will hold its coverage through a certain period of time or mileage count, whichever comes first. In addition, many manufacturers will also allow the warranty to be transferred when the ownership of the car is transferred, which makes it an attractive option for prospective buyers. Besides a seatbelt warranty, other types of car warranties include comprehensive or bumper-to-bumper, powertrain, corrosion, emissions, hybrid component, and electric vehicle component warranties.

6. Vehicle emissions warranty

An emissions warranty for vehicles is a type of warranty issued by manufacturers to protect a vehicle’s emissions system against certain performance standards. It covers the components that limit a vehicle’s emissions, such as the catalytic converter. In some states, such as California, emissions warranties will be longer than other states, as they have more stringent requirements.

Generally, emissions warranties cover the emissions system for two years or 24,000 miles, with some components such as the catalytic converter being guaranteed for 8 years or 80,000 miles. They can also vary from state to state and manufacturer to manufacturer.

Other types of coverage may include a comprehensive or bumper-to-bumper warranty, powertrain warranty, restraint system, corrosion, hybrid component, and electric vehicle component warranties. Most manufacturer warranties are “bumper to bumper”, meaning they have very few exclusions.

In some cases, the manufacturer warranty may transfer over to a new owner, as long as the vehicle still has coverage left. For example, if the vehicle has three years or twenty five thousand miles left on the warranty, the new owner may be aware of the remaining coverage and be able to take advantage of it should any issues arise.

In addition to manufacturer warranties, extended warranties are also available. These are like an extension of a factory warranty and help protect a vehicle from unexpected breakdowns or repairs caused by general wear and tear. These warranties typically last between 3 years/36,000-miles or 5 years/60,000-miles.

7. Warranty on hybrid components

Hybrid components like electric motors and batteries, which are found in electric or hybrid cars, are covered separately under hybrid component and electric vehicle warranties. For example, a 2022 Toyota Prius Prime plug-in hybrid vehicle offers an 8-year/100,000-mile warranty on its hybrid components, while its battery is covered by a 10-year/150,000-mile warranty. By comparison, our hypothetical 2022 Toyota C-HR offers no hybrid-specific components, but its comprehensive, or bumper-to-bumper, warranty is 3-year/36,000-mile, while its powertrain warranty is 5-year/60,000-mile. In addition, the emissions system of the C-HR is guaranteed for 2 years or 24,000 miles in most states, and 3 years or 50,000 miles in California, with certain critical components such as the catalytic converter being covered for 8 years or 80,000 miles in every state.

8. Warranty on tires

Tire warranties vary depending on the manufacturer, but typically cover any defect in workmanship or material for the life of the tire. This means that if a tire becomes worn down due to a manufacturing defect, the tire will be replaced at no cost to the consumer. The warranty may also cover damage caused by road hazards, such as a nail puncturing the tire, or a tire becoming flat due to a manufacturing defect. However, most tire warranties do not cover wear and tear from regular use, so if a tire is worn down due to normal use, it will not be replaced. If a tire becomes damaged due to improper installation or misuse, it will also not be covered by the warranty. Additionally, some warranties may require regular maintenance and inspection of the tires to remain valid. It is important to check with the manufacturer of the tire to understand the specifics of the warranty.

9. Battery warranty

The battery warranty for cars is a type of coverage that protects the battery, electric motor, and other unique components found in electric or hybrid vehicles. This warranty covers repairs or replacement of these components should they become damaged due to wear and tear or a manufacturing defect. For example, the 2022 Toyota Prius Prime plug-in hybrid vehicle has an 8-year/100,000-mile warranty on its hybrid components and a separate 10-year/150,000-mile warranty on its battery. The coverage can also extend to other vehicle components, such as the restraint system, corrosion, emissions, and hybrid/electric vehicle components. In some cases, an extended warranty will take over for the manufacturer’s warranty after it expires for additional peace of mind.

10. Warranty on audio systems

Audio systems are a crucial component of any car, providing the entertainment and connectivity options that drivers need. While audio systems may come with some protection from the manufacturer, it is important to understand what type of warranties come with a car’s audio system and what is covered.

Most audio systems are covered by the car’s comprehensive or bumper-to-bumper warranty, which covers the majority of parts and labor costs related to manufacturing defects. This type of coverage typically lasts for 3 years or 36,000 miles, whichever comes first. It is important to note that this warranty does not cover any malfunction caused by improper use or installation.

In addition to the comprehensive warranty, some audio systems may also be covered by an extended warranty. This type of warranty is an additional form of protection that covers certain items beyond the scope of the comprehensive warranty. It is important to read the extended warranty agreement carefully to determine what is covered.

Finally, audio systems may also be covered by the manufacturer’s maintenance plan. This type of plan typically includes scheduled maintenance items such as checking and replacing fluids, as well as other routine checks. Maintenance plans are usually offered at an additional cost and should be discussed with the car dealership prior to purchasing the vehicle.

Overall, audio systems come with varying levels of protection from the manufacturer and understanding what type of coverage is included is important when choosing a car.

What to Consider When Selling a Car With Warranty

1. Warranty

When selling a car with a warranty, there are several important factors to consider. First, it is essential to know the coverage of the warranty and the period of time or mileage count that the warranty is active for. It is also important to know if the warranty is attached to the specific VIN number of the vehicle or to the title holder. Additionally, it is important to know if the warranty will transfer to the new owner of the vehicle and, if so, what documents or proof may be required for the transfer.

Before selling the vehicle, it is also important to determine if the warranty is a manufacturer’s warranty or an extended warranty from a third party. Manufacturer warranties tend to be “bumper to bumper” and cover most unforeseen breakdowns within the warranty window. Extended warranties, on the other hand, are typically more limited and may only cover specific components of the car.

Finally, it is important to determine how the warranty will affect the overall value of the vehicle. Many buyers and sellers include the warranty in the overall value of the vehicle, so it is important to understand the terms of the warranty in order to accurately reflect its value in the sale.

2. Car Warranty

The impact of a car warranty on the sale of a car is immense. Car warranties provide a sense of security to car buyers, as they can be assured that any defects and breakdowns that occur within the warranty period will be covered. Furthermore, some manufacturers and aftermarket companies offer extended warranty packages with the purchase of a new car. These extended warranties provide extra coverage beyond the manufacturer’s standard warranty, as they may cover routine maintenance and other unforeseen breakdowns. Additionally, the transferability of these warranties when the car is sold is a major incentive for buyers. This means that the secondary buyer can take advantage of the remaining duration of the warranty, providing them with peace of mind that the car is covered should any issues arise. All these factors make a car warranty an attractive addition to the sale of a car.

3. Vehicle Warranty

When selling a car, it is important to be aware of the warranty associated with it. A vehicle warranty is a form of protection that can help cover repair costs associated with unforeseen breakdowns and other issues caused by general wear and tear damage. It is an important factor to consider when transferring ownership of a car, as it can add value to the sale and provide peace of mind to the new owner.

Manufacturer warranties typically come with the purchase of a new car and are active as soon as the vehicle is sold. These warranties often remain active even after the transfer of ownership, meaning the new owner can still take advantage of the coverage. Transferring a manufacturer warranty is a relatively simple process and often does not require any additional documentation.

Extended warranties can also provide additional protection for the current owner and subsequent buyers. These warranties are typically purchased after or just before the initial warranty coverage ends and can help cover unexpected breakdowns and other repairs caused by general wear and tear damage. It is important to be aware of the coverage associated with an extended warranty and how the cost may be divided between the parties involved.

Overall, vehicle warranties are an important part of car ownership and should be taken into account when selling a car. Not only can it add value to the sale and provide peace of mind to the new owner, but it can also help protect the current owner from any unexpected repair costs.

4. Warranty Transferability

Warranty transferability is the ability for a warranty contract to be transferred from one owner to another when selling a car. Transferability of a warranty depends on the provider and type of warranty purchased. Bumper-to-bumper and powertrain warranties are usually transferable, but it is important to look at your contract’s fine print to ensure that this plan can be transferred. Transferability can make a car more attractive for resale. Generally, warranties are never transferable from vehicle to vehicle as the coverage and price of the policy was designed for one specific car. Dealer/manufacturer warranties and extended warranties have different processes for transfer. To transfer a warranty, it is important to know what type of warranty was purchased and the provider of the policy.

5. Car Warranty Coverages

Car warranties typically include a comprehensive or bumper-to-bumper warranty, as well as a powertrain warranty. Other common coverages include restraint system, corrosion, emissions, hybrid component, and electric vehicle component warranties. An extended warranty can also be purchased after the initial factory warranty expires and will help to protect the car from unexpected breakdowns and other repairs caused by general wear and tear damage or other factory defects. This coverage may also include roadside assistance, depending on the provider.

6. Manufacturer Warranty

When selling a car, a manufacturer warranty plays an important role. It provides peace of mind to the buyer, knowing that any unforeseen breakdowns will be covered by the warranty. Transferring a warranty is typically a simple process, with minimal documentation required. Most manufacturer warranties are “bumper to bumper,” meaning they have very few exclusions.

In many cases, the warranty is still active even when the car is resold or the ownership transferred. Selling a car with an inclusive warranty adds value and can be an attractive selling point for the buyer. It allows them to purchase with the assurance that their investment is protected, in case the car breaks down immediately.

An extended warranty can also provide additional benefits beyond the manufacturer’s warranty. For example, in some cases the dealership may extend the coverage or create a new contract. Certified pre-owned vehicles may also come with the original coverage plan.

Which is why it is important to understand the manufacturer’s warranty when selling a car. It can make all the difference in the buyer’s decision to purchase, as well as how much they are willing to pay for it.

7. Warranty Coverage Options

When selling a car with a warranty, there are several different options available for coverage. The comprehensive or bumper-to-bumper warranty and the powertrain warranty are the most common. Additionally, there may be restraint system, corrosion, emissions, hybrid component, and electric vehicle component warranties. Third-party providers offer a wider range of plans, including comprehensive coverage similar to a factory warranty, or more basic policies like only powertrain coverage.

Endurance is one of the biggest names in the third-part warranty space and provides several plans to meet customer needs. The Endurance Advantage™ plan includes mechanical breakdowns and maintenance, roadside assistance, towing, rental car reimbursement, and other benefits such as coverage for cars up to 20 years old and joining & saving $300 on a protection plan.

GAP Insurance is another option for those looking for further protection. It covers the difference between what you still owe on your car loan, and what your vehicle is worth if it is totaled or stolen.

When picking the right coverage for your vehicle, it is important to compare the different types of warranties and their benefits. Take time to explore providers and request a free quote. Their trained specialists can help answer your questions and direct you to a coverage plan that works for you.

8. Car Warranty Cost

The cost of an extended car warranty depends on the vehicle, the type of coverage, and the provider. Generally speaking, warranties can cost anywhere from a few hundred to a few thousand dollars per year. 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. Moreover, some providers offer additional perks such as roadside assistance that are also included in the warranty transfer. Shopping around and comparing pricing is important when looking for a car warranty. For instance, some extended warranty companies offer monthly payments as low as $99, while others may offer discounts of up to $400 for signing up. Ultimately, the decision to purchase an extended car warranty is a strategic financial decision, and owners must weigh the costs and benefits before making a decision.

9. Warranty Provider Offering

When comparing and contrasting warranty providers offering for a car sale, it is important to consider their industry standing, the coverage offered, cost, transparency, and customer service. It is also important to research the different extended warranty providers and their offerings to find the best one that meets your needs and budget. Some providers offer the option to transfer ownership, and this is a great selling point when it comes time to sell your car. Therefore, it is important to ensure the provider you choose offers transferable coverage. Make sure to get free quotes from multiple companies and compare the available plans, coverage terms, added benefits such as roadside assistance, and the cost per year of coverage to find the best deal. Additionally, it is important to check customer reviews to ensure the provider is responsive and helpful. Finally, look for providers that offer money-back guarantees and increased contract transparency.

10. Warranty Coverage Plan

A warranty coverage plan is an insurance policy offered by a third-party provider that covers a car in the case of mechanical breakdowns or other issues once the original manufacturer warranty expires. This type of plan is important to consider when selling a car with warranty, as it offers protection against costly repairs and other associated expenses.

Having a warranty coverage plan in place can protect the buyer from paying for expensive repairs due to unexpected mechanical breakdowns, as well as other costs such as towing, rental car reimbursement, and roadside assistance. In addition, these plans often include additional perks such as all-inclusive membership and discounts on protection plans.

When searching for a warranty coverage plan, it is important to research providers and request free quotes to find the best plan to meet your needs and budget. Additionally, for buyers, it is easier to purchase a car with a service contract already included in the price. Transferring a warranty from a third-party provider is different from a manufacturer transfer, as the original owner may have customized their coverage plan with a deductible and monthly payment options to fit their needs.

Overall, having a warranty coverage plan in place when selling a car with a warranty is important, as it offers protection and peace of mind that the car will be protected in the event of an issue with a key component.

11. Warranty Window

The warranty window for selling a car with a warranty varies depending on the type of warranty and the specific details of the contract. Generally, when selling a car with a manufacturer warranty, the warranty is attached to the specific Vehicle Identification Number (VIN) and will remain in effect until a certain period of time or mileage count has been reached, whichever comes first. Meanwhile, an aftermarket extended warranty through a third-party provider will typically last until the manufacturer warranty expires if the transfer of ownership is approved. Certain warranties, such as the powertrain warranty, will usually last for several years or several years’ worth of driving, longer than the bumper-to-bumper warranty. It is important to carefully review the terms and conditions of the original warranty contract prior to selling the car to ensure that the warranty remains in effect and is transferrable.

12. Warranty Repairs

When selling a car with a warranty, it is important to consider all the repairs that the warranty covers. These repairs can include defects in the manufacturing, electrical and mechanical components, and problems that are not covered by the car manufacturer’s warranty. Additionally, the extended warranty may cover routine maintenance, such as oil changes, tire rotations, and brake pad replacements. The warranty may also cover damage from accidents or using the car in unintended ways. Furthermore, the warranty does not cover normal wear and tear, or modifications that interfere with the damages outlined in the warranty. Finally, buyers should make sure the warranty is transferable so that it can add to the resale value of the car.

13. Warranty Coverage Period

The warranty coverage period for selling a car with warranty depends on the type of warranty the car has. Most auto warranties cover repairs for a set period of time or a set distance in miles, typically 3 years/36,000 miles. This means that the warranty would cover any needed repairs in the first 3 years after purchase or for the first 36,000 miles driven, whichever comes first. In some cases, the warranty may be extended beyond the initial coverage period by a third-party provider, such as Endurance, which offers a variety of plans to cover mechanical breakdowns and maintenance. Certified Pre-Owned cars may also be eligible for the remainder of the original factory warranty.

14. Ownership Transfer Documentation

When selling a car with a warranty, it is important to transfer the warranty to the new owner. Transferring a car warranty requires the current owner to contact the warranty company or dealership to initiate the transfer process. This usually needs to be done within 30 days of the sale. Ownership transfer documentation such as titles and registrations are required to prove that the new owner is the rightful owner of the vehicle. This is to ensure that the warranty is transferred to the new owner and that the new owner is eligible for the full benefits of the warranty. Additionally, the more extended the contract, the higher level of confidence when transferring ownership to the new owner. Transferring the warranty is a simple process, but it is important to follow all the steps properly in order to ensure that the new owner will be able to take advantage of the warranty.

15. Odometer Reading Statement

The odometer reading statement is of paramount importance when selling a car with warranty, as it determines whether the car is still covered by it. The odometer reading can be found on the car’s dashboard and is used to measure the distance the car has travelled. It is important to check the odometer reading before selling a car with a warranty to ensure it has not exceeded the warranty limit. If it has, the car is no longer covered by it. Additionally, if the previous owner is not the first owner of the car, it is important to ask whether the warranty was transferred to you when you bought the car. Some manufacturers and models have different warranty terms when it comes to used vehicles. Furthermore, if you are selling a car on which you have purchased an extended or aftermarket warranty, you can be entitled to a prorated refund based on the date and mileage at the time of the sale. Therefore, it is important to understand the importance of an odometer reading statement when selling a car with warranty.

16. Powertrain Warranty

The powertrain warranty is a type of car warranty that covers the mechanical parts that move the car, such as the engine, transmission, and drivetrain. This warranty typically lasts for several years or a number of years’ worth of driving mileage, longer than the bumper-to-bumper warranty that covers cosmetic issues such as paint and upholstery. For example, the C-HR from our example comes with a 5-year/60,000-mile powertrain warranty, which means that should the transmission fail within this period, the repair costs are free. Transferring a warranty may change its terms, and some car manufacturers, such as Hyundai and Kia, offer one of the industry’s longest warranties on new cars, which is a 10-year/100,000-mile powertrain warranty. When buying a used car, the duration of the warranty period depends on when the car first sold. In addition, when buying a certified pre-owned (CPO) car, the remainder of the factory warranty will usually be transferred to the new owner. Third-party providers such as Endurance offer additional breakdown coverage plans, and customers can choose from a range of options such as powertrain coverage or basic maintenance services.

17. Engine Warranty

When evaluating an engine warranty for a car to be sold, it is important to consider the coverage, duration, transferability, and additional benefits provided by the warranty. Generally, a manufacturer’s warranty will provide bumper-to-bumper and/or powertrain protection; however, coverage, duration, and transferability may vary depending on the specific warranty and car make/model. For instance, while some car manufacturers may offer a 10-year/100,000-mile powertrain warranty, if the vehicle is sold, only a 5-year/60,000-mile powertrain warranty may transfer to the new owner. Additionally, some warranties may include extra perks such as roadside assistance, towing, rental car reimbursement, and all-inclusive membership benefits.

When comparing and contrasting engine warranties, car shoppers should look for extended coverage or auto protection plans (like Endurance Advantage) that may help to extend the life of a vehicle. These plans can provide up to $3,500 worth of regular maintenance coverage, including essential services like oil changes, engine checks, and brake pad replacements. Furthermore, by purchasing a protection plan, car owners may receive additional benefits like up to two tire repairs or replacements per year, 24/7 roadside assistance, up to $1,000 in total loss protection, key fob replacement, and more.

18. Airbag Warranty

The airbag warranty is a type of car warranty that covers damage done to a car’s seat belts and airbags. It is typically included in the comprehensive or bumper-to-bumper warranty of a vehicle, and can vary from manufacturer to manufacturer. For example, a new Toyota C-HR comes with a 5-year/60,000-mile warranty on its restraints, while a new Subaru model comes with a seat belt warranty that covers the entire life of the car. The airbag warranty pays to replace defective parts with new or reconditioned parts at the company’s discretion and also covers labor. It is important to note that airbag warranties do not cover routine maintenance, and failing to keep up with the manufacturer’s recommended maintenance schedule can void the warranty.

19. Brake Pad Warranty

A brake pad warranty is a part of a car warranty that covers the cost of replacing the brake pads in the event that they wear out prematurely. Generally, the cost of replacing brake pads is not covered by car warranties due to the fact that it is a regular wear and tear item that is expected to be replaced after a certain amount of miles. However, if the brake pads wear out before that mileage threshold, car warranties may cover the cost of the replacement brake pads. Additionally, car warranties may also cover the cost of figuring out what part of the brake system is malfunctioning and fixing that as well.

20. Warranty Companies

When it comes to buying a car with a warranty, there are a number of different companies providing extended warranties. The two main providers are Endurance and Olive, both of which offer the option to transfer ownership. Endurance offers six plans, five of which are extended warranties with varying levels of coverage to protect against mechanical breakdowns. The last Endurance plan, EnduranceAdvantage™, includes an extended auto warranty, along with maintenance services such as oil changes and tire rotations. Olive also offers six plans, ranging from basic to advanced coverage, as well as roadside assistance and other services.

When comparing the two, Endurance offers better coverage with a higher price tag, while Olive offers lower prices but less coverage. Additionally, Endurance gives discounts if you ask for one while Olive does not. It is important to get quotes from multiple companies and compare your car warranty options to find the best deal for you.