Does car warranty transfer to new owner? Learn the process

In this article, we will provide detailed information about the possibility of the transference of a factory warranty of the car to a new owner. We will also answer the question: Are extended warranties transferred too? In this article, we will let you know what you will have to do to get warranty transferred.

Does car warranty transfer to new Owner

Let’s check out this scenario. The first owner bought the car that comes with accessories and a warranty. Now, if the owner has a transferable warranty, and he want to transfer it to a new owner, then he must follow a certain procedure. The procedure will be presented in detail in proceeding paragraphs.

The manufacturer’s factory warranty: Its Benefits

Any individual who owns a car with a valid warranty, knows it is easier to sell. The owner can get a higher price for the car with a valid warranty.

The warranty might not be valid for a long time, depending when it is getting sold. Many people tend to sell their cars before the warranties expire.

When a car still has a valid warranty, it proves the car is still in good shape. A buyer will want to know can the car warranty be transferred to new owner?

The powertrain should still be in good shape, if something goes wrong – during the warranty transfer process – the new owner will be spared the expenses of any repair job. Moreover, the new owner can see which parts of the car are still covered under the warranty.

Dealing with a used car dealer

People can easily sell their cars to a used-car dealer. In this case, the dealer would want to know does the car warranty transfers to the new owner or not. If there is no issue, and every thing is clear, the dealer can help you get good money for selling a car. The whole process regarding the selling of used car should be completed in compliance with the Federal Trade Commission (FTC) Used Car Rules. According to these rules the dealers are instructed how to display the buyer’s guide on the used car.

Interested buyers tend to buy a used car, if the buyer’s guide is displayed properly on the car. The buyer’s guide will have details of the warranties for the car; whether they are still valid or not. So, those individuals who want to sell their cars with valid warranties, don’t have to worry about getting a good price for their cars.

The obligations of the manufacturer

If the warranty is still valid, the manufacturer must honor the terms of the warranty, to ascertain does the warranty transfer to new owner apply or not. Whether you sell your car to a new owner, or to a dealer, you must transfer the warranty first.

Extended warranties

When the original factory warranty expires, people tend to go for an extended warranty to safeguard themselves from unexpected expenses and inconveniences. Auto manufacturers do provide extended car warranty to their customers. The terms of extended warranty solely depend on the company’s policies. Warranties can be both transferable and non-transferable.

The transferring procedure

Usually auto makers and extended warranty companies provide transferable warranties to attract customers. Most of the car buyers do ask does the car warranty transfer to the new owner.

If you have a transferable car warranty, and you want to transfer that warranty to a new car owner, you must follow the following steps:

  • The factory warranty is connected to the car’s identification number. This connection will be recorded and updated in the national database of the car maker. And your car’s warranty will be automatically transferred to the new car owner. You don’t have to pay any fee
  • If there is any problem with the car, and the manufacturer has to get the car repaired, the new owner might have to make it clear to the manufacturer that he/she had bought the car from the original owner, and the car is now registered under his/her name
  • In case, the new owner is faced with an extended warranty issue, the original owner must send a letter to the auto extended warranty company, with all the warranty details. The owner must clearly state the name of the new owner and details of the transfer of the ownership of the car.
  • The original warranty must be presented. All the details about the maintenance work, in accordance with the warranty terms, must be included, and all the receipts must be attached
  • The mileage of the car on the date of sales and hand-over, should also be provided
  • Transfer of warranty must be done in a 30-day window.
  • The owner must pay the fee in full to confirm that the warranty transfer is legal. He must keep the receipts for the fee, and provide their photocopies to the new owner


First time car buyers must check the validity of the warranties to be on the safe side. Nowadays extended car warranty businesses are in the practice of making their warranties easily transferable.

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