Can car warranty be cancelled

By Lawrence Minnie

All car manufacturers offer a factory warranty with a new car. Some of these warranties offer unlimited distance coverage within a specific time period, while others will specify an upper limit to the distance and a maximum time period, whichever comes first.

Car warranties can indeed be cancelled by either party. The vehicle manufacturer will usually cancel the warranty if the vehicle changes hands privately, or if it changes hands without the manufacturer being informed of the transfer of ownership. The warranty will also be declared null and void if the vehicle owner modifies the car in such a way that it violates the warranty’s terms, or if there are clear signs of abuse or extraordinary usage, such as motorsport activities.

Almost all manufacturers will have a comprehensive list of items that the warranty will or will not cover, and the onus is on the buyer to familiarise themselves with this to avoid nasty surprises down the line.

A vehicle owner can cancel the warranty themselves, but this practically never happens.

There is another type of warranty available, and this one is often offered in the second-hand car market. Rather than a manufacturer warranty, it is basically a type of insurance provided by a third party, which offers a warranty that covers mechanical defects or failures for a specific period after the sale.

Generally, and speaking from personal experience, these warranties are often not very comprehensive on the lower end of the price scale, and whatever mishaps they do cover is usually only for a very small portion of mechanical costs involved.

There are different packages available however, and if the car in question is older than 8 years the finance house may require you take out such a policy, so be very careful when selecting your coverage.

As a consumer, you should have no reason to cancel a warranty offered to you. Rather be on the safe side, and honour the terms of that warranty on the off chance that something goes wrong. It is also advisable to make sure that you don’t perform any modifications to your car which may invalidate the warranty.