Is a car warranty transferable?

By Roger Houghton

Generally, nowadays, a new vehicle warranty from a vehicle manufacturer is transferable, but this may not be the case if the warranty or extended warranty has been issued by an independent, third party service provider or if the car is pre-owned.

Do not just accept the word of the seller as to transferability, but ask to see the warranty document and read it before it is too late, and you have signed up to buy the car.

The best avenue to follow is to contact a dealer of this brand so you get the correct information from a reputable source.

There are usually conditions under which the warranty may be transferred. The main one will be the requirement of having had the car serviced by a franchised dealer according to the schedule.

Another question that may well be asked is if the car has been involved in a serious collision and suffered damage. The warranty could be nullified if the car has been repaired by a non-approved panel beater or if non-genuine replacement parts have been fitted.

Having a valid warranty can be a financial lifesaver if your car suffers a major mechanical failure such as an engine blow-up or malfunctioning gearbox, so take time to study the document before you buy a car – particularly if it has been transferred from the original buyer as there may be some exclusions in the fine print.

There are also a growing number of independent companies, including many insurers, offering motor vehicle warranties. Beware, some of them may be fly-by-nights, so rather get a manufacturer approved policy from the selling dealer or buy a policy from a reputable insurance company or financial institution.

Remember is will be too late for tears if you find out when you have a major problem that there is a loophole in your warranty and the manufacturer or dealer refuses to repair the damage.