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Average Cost to Transfer a Car Warranty
If you are looking to buy or sell a used vehicle, then you may have wondered how much it costs to transfer a car warranty. Most vehicle manufacturers offer low or no-cost limited warranties with the purchase of a new car. Car makers may also have additional service contracts available for purchase. Several auto dealers and independent companies also sell various levels of service contracts at different prices. Both buyers and sellers of used vehicles may benefit from knowing the average cost to transfer a car warranty before starting the purchase process.
Average Cost to Transfer Original Manufacturer WarrantyA growing number of car makers are making it easier and more affordable to transfer auto warranties. General Motors offers automatic, no-cost transfers on the 5-Year/100,000 Powertrain Warranty for its 2009/2010 vehicles. The warranty transfer does not require any application process and applies to Buick, Cadillac, Chevrolet and GMC brand cars. Chrysler also offers free automatic transfers of its 5-year/100,000-Mile Powertrain Limited Warranty. This applies to any of its 2010 Chrysler, Dodge and Jeep brand cars. The original limited warranties on Toyota and Scion cars are also automatically transferable at no-cost. Car makers that also offer free automatic transfers of their basic (or bumper-to-bumper) original warranties include:
- BMW
- Nissan
- Hyundai
- Mitsubishi
Transfer Costs for Manufacturer and Dealer Extended Warranties
Extended warranties are typically available to help supplement an original service plan, or as coverage for cars with expired basic warranties. Most car makers and many auto dealers sell some form of extended service contracts. In many cases, there is a fee to transfer these kind of warranties. For example, GM requires a $50 charge to transfer its extended protection plans. Chrysler also charges $50 to transfer its Added Care Plus Coverage. Dealers may also have a fee to transfer extended service plans. Curry Honda, a dealership in Massachusetts, has a $50 fee to transfer Honda Care plans from one owner to another. Average Cost to Transfer Independent Extended WarrantiesNumerous independent companies also sell extended plans that cover things like mechanical breakdowns, parts repair and roadside assistance. Like dealers and manufacturers these businesses often charge a certain amount to transfer an extended plan. Warranty Direct, an established company based in New York, states that their warranties may be transferred for a fee of about $50 or less. Other car warranty sellers, like EasyCare, state that warranty transfer charges may vary depending on state regulations.Car warranties may help increase the resale value of used cars and provide a sense of increased security to potential buyers. Before beginning the resale process, the current and prospective new owner may want to confirm what, if any, fees are required to transfer the vehicle service contract. An increasing number of auto makers are introducing original basic warranties that transfer automatically, at no charge, regardless of ownership. However, when it comes to transferring extended warranties, drivers may have to pay manufacturers or dealers fees of around $50.
Independent companies that specialize in selling vehicle service contracts may also charge transfer fees starting at about $50.
