Car Warranty Transfer | Factors to Consider

Are you planning on buying a car from someone or selling it to someone? If yes is your answer to either of these questions, then you must be interested in the subject of car warranty transfer

Generally, the warranty covering a particular vehicle can be transferred to the new owner of the same vehicle automatically. However, that’s not the case every time or there could be a few catches for the warranty to be transferred and you will learn all about it here. 

Car Warranty Transfer

Manufacturer Warranty

If the vehicle you are interested in buying or selling is still under the new car warranty, that would make the warranty transferring process very easy. In this scenario, very little would be required from both the buying as well as the selling party. This is because most of the leading car manufacturers preserve large-scale databases that link warranty details with the VIN number of every automobile.

What this means is that the manufacturer warranty is more concerned with the vehicle in question and less with who owns it.

Usually, the warranty on a new car (and parts) lasts up to 36,000 miles or three years. So, let’s say that you are interested in purchasing a car that your friend bought about a year ago, and its odometer reads 24,000 miles. Once the car gets transferred to you, so will the warranty (probably) and it will be valid for an additional 12,000 miles. However, it should be noted that the new car warranty differs from company to company. 

Nissan, Chevrolet, Toyota, and Ford offer a bumper-to-bumper coverage of 36,000 miles or 3 years. Hyundai, on the other hand, offers a 5-year (or 60,000 miles) bumper-to-bumper coverage. 

Additionally, it should also be clear that manufacturer warranty doesn’t cover occasional car maintenance, damage caused by accidents, natural disasters, or lack of car care, and cosmetic parts. 

Transferring Aftermarket Warranty 

For those of you unaware, an aftermarket auto warranty is purchased by people to protect their vehicles after the expiration of the manufacturer’s warranty. There are various companies that offer such warranties across the United States. But are those transferable or not is the question of interest here. 

Apparently, this factor is dependent on the terms and conditions stated in the warranty contract. While it may sound confusing at first, it’s completely possible for one company to have a warranty contract that can be transferred as well as one that cannot be transferred from one owner to the next. 

It is also common for various companies to add a “transfer warranty” option in their contracts to lure in new buyers. However, it should be kept in mind that a contract with a transferable warranty might be a bit more expensive than the contract that doesn’t have the option in question. 

However, unlike manufacturer warranty, an aftermarket warranty isn’t transferred automatically. Generally, the original owner of the car will have to reach out to the warranty company and complete a verification procedure in order to transfer the warranty to the new owner. Similarly, the new owner might have to contact the warranty company and request the contract to be updated with their details. 

In some cases, the entire warranty transfer process can be carried via phone. In other cases, you might have to pen down a letter and sign it for the transfer to take effect. In either case, it’s recommended that you reach out to the warranty company and confirm whether the warranty is transferable or not. 

Additional Costs 

The story doesn’t end with finding out whether a warranty is transferable or not because even if you find an aftermarket warranty that can be transferred, there might be additional costs that you will have to incur to finalize the transfer. 

In most cases, these costs generally include reasonable administrative fee. On average, the warranty transfer fees may lie between $100 and $200. This fee depends on two main factors i.e. the company and price of the original warranty service contract. 


When it comes to transferring a vehicle, it’s given that the new owner will be interested in getting the warranty transferred to them as well. As long as a vehicle is covered by the manufacturer’s warranty, the entire transfer procedure remains easy and automatic. 

Upon the expiration of the said warranty, the owner has the option to buy an aftermarket warranty. However, the aftermarket warranty isn’t as easily transferable as the manufacturer’s warranty and may require the seller and/or the buyer to reach out to the company, verify their identity, and pay additional charges before the transfer can be deemed completed. 

Muhammad Saad Khan

Experienced Finance Officer with a demonstrated history of working in the marketing and advertising industry. Skilled in Microsoft Word, Income Tax, PowerPivot, Management Reporter, and Microsoft Dynamics GP. Strong finance professional with a ICMA (Part Qualified) focused in Accounting and Finance from Institute of Cost and Management Accountants - ICMA. I write finance related article in my free time on TrendMut.

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