Used Car Buying Guide: The Best Transferable Factory Warranties

Nov 12, 2010 Candice Gillingwater

The Best New Car Warranties Are Transferable - Sammmm

After spending your hard-earned money on a used car, you don't want it to require major repairs soon after your purchase. Buying a reliable used car is a trickier process, however, than purchasing a reliable new car. In many cases, you know little or nothing about the previous owners and how the car was cared for. In this case, a transferable factory warranty serves as a safety net for both your wallet and your psyche.

Transferring a Factory Warranty From a Used Car

The good news about transferring your used car’s factory warranty if you buy from a dealership is that you usually don’t have to contact the manufacturer, fill out extensive paperwork or pay a transfer fee. Most car dealerships will take care of the necessary paperwork for your used car warranty transfer. Some manufacturers don’t even require a formal notification of the title transfer.

If you purchase a used vehicle from a private owner that still carries its factory warranty, make sure to verify that the warranty is fully transferable with the manufacturer before you purchase it. The used car’s manufacturer can provide you with any paperwork necessary to validate the transfer of the car’s warranty into your name.

Some Vehicle Warranties Are Only Partially Transferable

While most car companies offer extensive warranty protection that makes a full transfer from one buyer to the next, a few, such as Kia and Isuzu, reduce the warranty protection offered every time the vehicle changes hands. This offsets the amount of risk to the company.

When a used car is sold, it may travel across the country before it reaches the new buyer. This places the car in a different climate under new driving conditions. In addition, each individual has a different driving style and adheres to varying maintenance routines. All of these factors contribute to make repairs more common the more owners a vehicle has.

A partially transferable warranty doesn’t reduce the amount of protection you receive under the factory warranty. Rather, it reduces the years or mileage that the manufacturer will cover. For example, a vehicle manufacturer that offers 10 year/100,000 mile coverage on a car to the first owner may reduce that coverage to 5 years and 50,000 miles when the used car changes hands.

New Car Factory Warranty Terms By Manufacturer

The following warranty terms are offered on new vehicles by their manufacturers. With the exception of Pontiac, which was discontinued in 2008 but whose warranties are still valid, these warranties apply to 2010 and 2011 vehicles only. Because most new car warranties transfer in full to the second owner, this list should help you decide which cars carry the best factory warranties and are worth buying used and which you should pass over in favor of more comprehensive warranty protection.

• Acura: Basic – 4 yr./50,000 miles Powertrain – 6 yr./70,000 miles
• Audi: Basic and Powertrain – 4 yr./50,000 miles
• BMW: Basic and Powertrain – 4 yr./50,000 miles
• Buick: Basic – 4 yr./50,000 miles Powertrain – 5yr./100,000 miles
• Cadillac: Basic and Powertrain – 5yr./100,000 miles
• Chevrolet: Basic – 3 yr./36,000 miles Powertrain – 5 yr./100,000 miles
• Chrysler: Basic – 3 yr./36,000 miles Powertrain – Unlimited (2011 model only)
• Daewoo: Basic – 3 yr./36,000 miles Powertrain – 5 yr./60,000 miles
• Dodge: Basic – 4 yr./50,000 miles Powertrain – 5yr./100,000 miles
• Ford: Basic – 3 yr./36,000 miles Powertrain – 5 yr./60,000 miles
• Honda: Basic – 3 yr./36,000 miles Powertrain – 5 yr./60,000 miles
• Hyundai: Basic – 5 yr./60,000 miles Powertrain – 10 yr./100,000 miles
• Infiniti: Basic – 4 yr./60,000 miles Powertrain – 6 yr./70,000
• Isuzu: Basic – 3 yr./50,000 miles Powertrain – 7 yr./75,000 miles
• Kia: Basic – 5 yr./50,000 miles Powertrain – 10 yr./100,000 miles
• Lexus: Basic – 4 yr./50,000 miles Powertrain – 6 yr./70,000 miles
• Lincoln: Basic – 4 yr./50,000 miles Powertrain – 6 yr./70,000 miles
• Mazda: Basic – 3 yr./36,000 miles Powertrain – 5 yr./60,000 miles
• Mercedes: Basic and Powertrain – 4 yr./50,000 miles
• Mitsubishi: Basic and Powertrain – 5yr./60,000 miles
• Nissan: Basic – 3 yr./36,000 miles Powertrain – 5 yr./60,000 miles
• Pontiac: Basic – 3 yr./36,000 miles Powertrain – 10 yr./100,000
• Saab: Basic and Powertrain – 4 yr./50,000 miles
• Subaru: Basic – 3 yr./36,000 miles Powertrain – 5 yr./60,000 miles
• Suzuki: Basic – 3 yr./36,000 miles Powertrain – 7 yr./100,000 miles
• Toyota: Basic – 3 yr./36,000 miles Powertrain – 5 yr./60,000 miles
• Volkswagen: Basic – 3 yr./36,000 miles Powertrain – 5 yr./60,000 miles
• Volvo: Basic and Powertrain – 4 yr./50,000 miles

The Downside of Factory Warranties

A factory warranty covers a vehicle’s parts if they fail under “normal” use. If the dealership has reason to believe that you may have placed additional strain on the vehicle, such as putting it through frequent street races, the manufacturer can refuse to cover the replacement of certain parts. Different manufacturers and dealerships are more forgiving than others on what constitutes normal wear and tear.

Extended Warranty Protection for Used Car Buyers

When you buy a car that still carries factory warranty protection, you have the comfort of knowing that you’re protected from the high cost of repairing parts that are faulty due to a manufacturer’s defect. If the car carries an extended warranty, however, you may not enjoy such thorough coverage.

Extended warranties don’t always transfer from buyer to buyer. Of those that do, your failure to submit the proper paperwork upon purchasing the vehicle could prevent you from being able to take advantage of the savings an extended warranty offers should your vehicle require repairs. When an individual or dealership uses a vehicle’s extended warranty as a selling point, always double check that the warranty will transfer before agreeing to purchase the car.

Regardless of the type of used car you purchase, a factory warranty is the best type of warranty to have. Try to purchase a car with as few miles as possible. and ensure that the vehicle’s factory warranty is still in place before signing on the dotted line.

Related Articles:

The Best and Most Reliable Used Cars: Buying Guide

Used Car Lemon Laws and Lawsuits

Car Valuation Tips: Estimate Used Car Values

Sources:

Consumer Reports: Pros and Cons of Buying a Used Car

Edmunds.com: Warranty and Roadside Assistance Coverage

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  The Best New Car Warranties Are Transferable - Sammmm

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  Does the Factory Warranty Transfer? - mikecco

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  Mileage Helps Determine Warranty Duration - bjearwicke

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  Extended Warranties Help Offset Repair Costs - TALUDA

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