When you want to upgrade your car and sell the previous one brought with an extended warranty, one question comes to your mind is whether you can transfer your car warranty to the new owner. What will happen to the car warranty when it changes hands?
Extended car warranties are attractive due to the various benefits they offer, so most people choose to buy them. However, several questions arise while upgrading a car. This guide will cover all your queries related to transferring a car warranty in the UK, so let’s start with the car warranty first.
Table of contents
What Is a Car Warranty in the UK?
A contract between the car owner and warranty provider to cover unexpected cost repairs for a certain period by the warranty provider. In turn, the car owner has to pay a set fee upfront every month or according to the contract deals. Extended car warranty covers mechanical and electrical failures but it does not include daily wear and tear repairs of the car.
Can You Transfer an Extended Warranty to Another Car?
Extended car warranties are not transferable to the other vehicle because they are tied to the specific vehicle for which they were purchased. The specific car’s model, age, and mileage make extended warranties non-transferable to other cars. So, if you purchase or sell a car, the extended warranty will remain tied to the specific car.
However, there are some extended warranty providers who offer the option to cancel the existing warranty and provide a pro-rata refund based on the remaining term. This option provides convenience if you want to upgrade your car. You can easily use the refunded amount to purchase an extended warranty for your new vehicle.
Are Car Warranties Transferable in the UK?
Most warranties in the UK are transferable to the new owner. There is a guideline of how the warranty will be transferred to the new owner. The warranty provider is notified beforehand.
- Manufacturer’s Warranty
If the car’s manufacturer or factory warranty is still remaining the warranty will be automatically transferred to the new owner and he/ she will benefit from the factory warranty till the remaining period of warranty.
- Extended Car Warranty UK
However, the extended car warranty UK is not automatically transferable to the new owner. It involves a process to file out a transfer form of ownership along with a small administrative fee. You should totally understand the warranty transfer process beforehand and get to know the associated costs as well to prevent any mishaps.
6 Steps to Transfer Your Car Warranty
Here are manageable steps to let you understand how you can transfer your car warranty to the new owner smoothly.
- Check the Terms and Conditions
Understand the terms and conditions of the car warranty UK to see how it can be transferred. Arrange any associated fees to prevent hussle in the meantime.
- Contact the Warranty Provider
This step is important to transfer your car warranty and inform him about the new owner and sale of your car. Tell him about the intentions of transferring the warranty, and he will guide you through the prerequisite steps for a smooth transfer.
- Complete the Transfer Form
The warranty provider will provide you with a warranty transfer form, fill it out with the details of the car and the new owner’s details. It might ask details about you i.e the current owner.
- Pay the Transfer Fee
There is a small administrative fee associated with the transfer process. Some warranty providers are courteous enough to not charge any fee to complete the transfer process.
- Provide Documentation
Submit all the documents to the warranty provider, such as proof of sale and the new owner’s ID which is required to verify the whole process.
- Confirm the Transfer
After completing the above steps, the warranty provider will confirm the transfer and the new owner will be notified about the successful transfer of the extended warranty. The new owner will be outlined with the remaining period of warranty and terms of it.
Benefits of Transferring a Car Warranty
There are various benefits of transferring a car warranty to the new owner. Some of these are:
Increased Resale Value
If your car has remaining extended warranty, it will attract potential buyers at the better price of resale. It will gives you a protection from unexpected costs.
Smooth Transition
The new owner will enjoy the extended car warranty and associated benefits without any interruption. The smooth transition of extended warranty ownership is appealing to the new owner.
Peace of Mind
A hassle-free car warranty transfer gives peace of mind to both the owner and the buyer while reducing unexpected repair costs as well.
Conclusion
The transfer of extended warranties in the UK is a smooth and straightforward process to provide reassurance to the new owner. However, keep in mind the extended warranties are transferable to the new owner not to the new cars because every extended warranty works according to the car’s model and age. You can follow the above steps to transfer extended warranty to the new owner while ensuring your peace of mind.
