Often you see new cars being privately sold with a year or two still on their warranty. Can that warranty be used by the new owner? Does it always stay with the car no matter who owns it? Or do some conclude once the vehicle is sold?
This is a very good question, because it is often assumed the warranty always goes with whoever owns the car. But this is not so – it entirely depends on the warranty. There are various types – the car manufacturer’s warranty, the dealer’s warranty, or other independent warranties. Most car manufacturer’s warranties stay with the car. That means, if you buy the vehicle with some time remaining on a manufacturer’s warranty, then you get the benefit until it runs out. However, these tend to apply only to failed car parts. But this doesn’t apply to all car manufacturers. You are even less likely to benefit from dealer’s or independent warranties, many of which end the moment that a car changes ownership. If you are buying a vehicle advertised with a year or so left on the warranty, it is imperative that you check with the issuer as to whether it’s transferable.
If you are selling a vehicle, you should not state that the car has time left on its warranty, unless you are sure that it is transferable to a new owner.
