Car Warranty Transferability - New and Used Car Buying Tip

  This is a great car buying tip whether you are buying a new car or if you are looking at buying a pre-owned it is especially important.
  There are some pretty fantastic warranties on new vehicles out there these days. 10 year/100k mile terms are a great example. Many of the domestic companies have even stepped it up as well and are offering "better" warranties than a lot of your strong import models. I emphasize the word better because to me it is in the eyes of the beholder. Along with these warranties however I noticed in many cases they are not fully transferable to any additional owners should you sell or trade the vehicle. This is not necessarily a bad thing it is just something you should consider. Second owners or any after that buying these vehicles will likely receive only a portion of that remaining warranty. The term of the new car warranty is likely to be reduced for any owners after the original. Some aspects such as corrosion or bumper-to-bumper may be removed altogether.

  These massive warranties are an incentive to attract the new car buyer. The car manufacturers get pad when a new car initially sells and not when it is resold. Cutting back on that warranty for a second owner increases the probability of you needing parts and service in the future. The whole thing in the long run is designed for one thing, profit. In most cases where a consumer drives their vehicles until the wheels fall off though, they come out a winner. As a consumer I just want you to understand the terms and transferability of a warranty when buying your new car and consider ways that transferability could possibly affect you in the future. Consider the possibility of early trade in or resale and how that limited transfer warranty may affect the possible number of prospects may be interested. When I sold cars I definitely would point out limited transferability if any when justifying trade values. The fact is, it does at times have a serious impact on how well that vehicle may resell. Especially if it is a later model (1-5 years old) where people like to see they are getting some warranty, used or not. You see, when people are spending tens of thousands on a vehicle they like to see some substantial peace of mind coming with that purchase. They are making a serious investment.

  Be a smart consumer and understand your warranty terms. It not only affects you as the initial buyer but can have a different impact to any owners after you. What makes this such a valid car buying tip for both used and new prostpects is that those warranties hold a "cash" value. As the owner of the car bearing that warranty it finacially protects you against malfunction. As someone looking to buy that car, whether it still holds a warranty or not could make or break their feelings on it or open the table for further negotiations. People can quickly devalue a used car in their mind lacking any warranty especially if it is a late model vehicle they are looking at buying. I just wanted you to understand how a warranty carries on to someone after you, could possibly affect you. Whether you are trading it in or selling it outright.

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