In most instances, manufacturers will transfer a car’s warranty on re-sale to the new owner. The dealer will be able to provide you with all the details. A condition that applies here is that the service record is complete, which is based on a certain period or car mileage.
It is vital to check what is the outstanding warranty period is when you’re buying a used car. You can do this by contacting the dealer for the brand and supplying the VIN (vehicle identification number).
Extended warranties are available on many vehicles and can be bought for cars that are not more than 15 years’ old, with the added condition that the vehicle has not overrun the 250 000km limit. It may also be possible to transfer in certain conditions extended warranties to a new owner.
Ensure warranty transferable
So, before you purchase an extended warranty on a new or used vehicle, ensure that the warranty is transferable. If it can be transferred, you will have to inform the administrator of the contract and fill out a warranty transfer form, which normally requires details of the seller and buyer.
You will have to produce the service history (hence the importance to always keep your service record updated) as proof of regular maintenance is necessary. All documentation of proof of the private sale will also have to be provided.
An inspection report provided by a registered mechanic is also needed. Each warranty could have different vehicle inspection needs as proof that the warranty has not expired. You will have to mail all the papers (you will need the email of the administrator) plus proof of the EFT of the transfer fee.
Reasons for exclusion
The reasons extended warranties may not be possible could include the following:
- You cannot transfer a warranty from one vehicle to a different vehicle.
- Modifications in which recognised parts were not used.
- Repairs conducted by an unauthorized person.
- Regular maintenance was not conducted, requiring oil changes, routine engine maintenance, brake inspections and damages to the car which went unreported, reckless driving and the transfer of a warranty between owners outside of the allotted time period.
So, knowing that a car warranty is transferable, yet an extended warranty is not, take it upon yourself to inform the new owner of all the details outlined in this blog. In the case of the warranty not being transferable owing to the details provided above, the new owner can probably purchase a service plan provided that the vehicle meets certain criteria.
Impress on the new owner the importance of having cover for the vehicle as the chances of breakdowns are great, and the costs of paying for breakdowns are even greater.
Explain the differences between a manufacturer’s warranty and dealer’s warranty. The first is something that is honoured by the manufacturer and the warranty is recognised at all participating dealers. The dealer’s warranty may only be valid at the individual shop and may not include all that is covered by the manufacturer’s warranty.