What happens to a warranty when you sell the car the warranty is protecting
For many people, the process of buying a car is a lot more exciting than driving the car itself. Looking round showrooms, surfing the web and checking out the famous new car smell all come with a sense of excitement and it’s not surprising given how big a purchase (to you) a new car is.
Selling a car, too, is often quite exciting because of the change it represents.
But as exciting as the buying/selling process is, it’s often the more boring aspects that are the most important. When buying, insurance is a hugely important consideration, and when selling, it’s important to consider what happens to the warranty.
New Car Warranties
When you buy a car brand new, it comes with a warranty 99% of the time, usually lasting a few years or so. In some cases, brands (such as Vauxhall) might offer a ‘lifetime’ warranty, but this is dependant on a number of conditions, such as mileage and the car staying with the first owner.
Typically though, selling a ‘new’ car that still has some warranty remaining, will see the warranty automatically transferred to the new owner.
However, it’s often more complicated when selling a used car. Some warranty providers – such as GO Car Warranty – will allow for the warranty to be transferred to the new owner for a small fee, which covers the administration costs. But many providers will look to take advantage…
Don’t get caught out!
The reality is that car warranty companies make money out of selling new warranties: that’s their business. As a result of this, they will often try very hard to sell a new warranty, even if there is one on the vehicle that could be transferred. It’s important for consumers to stand their ground and hold firm – often the salesman will give in (eventually) and assist with the transfer.
Of course, every case is different and the debate about whether buyers should purchase a warranty for their car, or pay for repairs as and when they’re needed, is bound to go on and on. It is of course up to the buyer in each individual case to decide whether they think their car will need repairs frequently or not and the scales need to be balanced before a decision is made.
As with any important purchase, consumers should compare a range of different warranties should they decide to go ahead with one. With so many providers on the market, some companies offer different things as part of their core package. Ask yourself: what is it you want from your warranty – and are you willing to pay for it?
For sellers, if you’ve bought a car warranty on one car and are now switching vehicles, there’s no reason why you shouldn’t look to switch the warranty between the vehicles, rather than pay out for another warranty. The exception is when the vehicle you’re selling and the vehicle you’re buying differ hugely. Take the time to look at your original warranty, and ask yourself whether there is anything else on your new vehicle that isn’t going to be covered. If in doubt, get advice.
published: 01/10/2013 17:00:00