What does transferable warranty mean?

However, having a transferable warranty means that the current homeowner can transfer the warranty to the next owner. While a non-transferable guarantee can increase the value and attractiveness of the home for prospective buyers, it is not usually a decisive factor and should not affect you directly. A transfer guarantee can also be granted to any remote transferee through the guarantee of an instrument. Volkswagen offers a six-year, 72,000-mile contract that is transferred directly to the new owner when the original owner exchanges the car for a newer model.

Automakers' warranties offer premium plans that exempt you from even routine vehicle maintenance and repairs. While federal law in the United States states that the warranty is associated with the car and is transferred to subsequent owners until the expiration date of the warranty, your car warranty is your individual contract negotiated with the dealer that sold it. Honda offers an eight-year transferable unlimited mileage warranty on all of its high-voltage electric batteries. 71 percent of BMW owners, 60% of Mercedes-Benz owners, 65% of Chrysler owners and 63% of Dodge owners needed to extend their warranties.

Used car warranties can act as additional insurance for your vehicle, including ensuring that your loan balance is paid in the event of an accident, theft, sudden death, or disability. General Motors offers extended warranties for five years or 60,000 miles on Chevrolets, GMCs and GMC trucks. While Hyundai's 10-year 100,000 mile warranty sounds great, it only applies to the powertrain; only Hyundai's five- or 60,000 mile warranty is transferred to the vehicle's second owner. Warranties offer protection for 200,000 or 250,000 miles and the free use of a rental car while the car is being repaired.

Title I of the Magnuson Moss Warranty Act empowers the Federal Trade Commission to regulate new car warranties, enforce implied warranties, and demand compensation for the manufacturer's breach of a warranty contract. Savvy buyers of used cars should carefully review the warranties that are available for purchase at any time when the manufacturer's warranty expires. Extended dealer warranties allow you to return to the dealer even for routine maintenance of your vehicle. Hyundai and Kia offer five-year or 60,000-mile warranties for new cars with a 10-year or 100,000 mile warranty for their powertrain.

Savvy buyers should carefully read warranties and extended service contracts before signing the contract for the sale of a car or truck. Powertrain warranties are six years or 70,000 miles (without deductibles) for parts, materials and manufacturing of the engine, transmission or transmission system.