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Understanding the Concept of a Car Warranty Transfer

Understanding the Concept of a Car Warranty Transfer  Image

While not every auto manufacturer offers the option, it is sometimes possible to use a used car as a trade in at an authorised dealer, and have the remainder of the Car Warranty transfer with the car itself.  What this means is that assuming the dealer arranges for an inspection to make sure the car is brought up to factory standards, any consumer who buys that trade-in from the dealer may be able to enjoy the remainder of that original warranty.  When offered, this arrangement can often provide significant benefits at a very reasonable cost.

For example, if a consumer trades in a vehicle after owning it for a couple of years, and that car carries a ten-year warranty, the dealer will work with the manufacturer to ensure the car can pass a rigorous inspection test.  If so, the manufacturer will honour the remaining eight years on that warranty plan when it is purchased as a used car.  The second owner will often have the same range of benefits as the original owner, while still paying an equitable cost for the plan.

Asking about this type of car warranty arrangement is often a good idea.  Typically, dealers who primarily sell new cars manufactured by a specific auto company will have this sort of warranty plan on any used makes and models that were also manufactured by the same automaker.  Depending on the car you have in mind, the coverage may be better than you could get from other forms of dealer warranties, and even be a little more cost-effective. 

published: 17/08/2011 11:00:01

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