Selling your car can feel like a juggling act, from the cleaning and paperwork to choosing the right platform and advertising. Of course, let’s not forget about scheduling viewings and negotiating with prospective buyers. If your vehicle still has an existing warranty in place, is that just one more important thing to consider? Or is it the secret sauce that earns you a quicker sale at the best price? 

Here’s what you need to know about selling your vehicle with an existing warranty in place, if there is an opportunity to get a refund, and what would happen to remaining warranty period when you do sell your car. 

Can You Transfer Your Warranty? 

In many cases, yes, you can have your warranty transferred. Most extended warranties in South Africa – especially those from reputable providers or dealerships – can be transferred to the new owner.  

To be sure, you will need to check the following: 

• Check whether your warranty provider allows transfers. 

• Confirm if there’s a transfer fee or any conditions (like a full service history). 

• Find out if your warranty needs to be registered in the new owner’s name within a certain period. 

Is There A Warranty Refund? 

If you’ve have an existing warranty and have decided that it isn’t in your best interests to transfer it with the vehicle to the buyer, you could quite possibly be eligible for a partial refund. This will depend on how long you’ve had the warranty and how much time is left on it. 

How this would usually work is that if you paid for the warranty upfront and want to cancel it before it expires, your provider might refund the unused portion. The refund amount in question, will depend on the number of months or kilometres remaining, minus any admin fees. 

That said, some warranties are non-refundable. This is easy enough to confirm, because these kinds of details are noted in your warranty terms and conditions. Failing that, you can always speak to your warranty provider directly. 

The Takeaway For Sellers 

Selling a vehicle with an existing warranty can actually work in your favour. This is largely because a warranty adds value to the vehicle, and peace of mind for the buyer. There’s safety in buying a vehicle with a warranty, because it tells buyers that the seller has had the means to look after any issues that could be tucked out of sight. 

Here is a snapshot what you need to know if your car is still under warranty… 

• Use this information to decide whether it makes more sense for your circumstances to transfer the warranty to the buyer or cancel it and claim a refund. 

• Factor the existing warranty into your asking price if it is transferable, as this usually sweetens the deal. 

• Be transparent with the buyer about the status of the warranty and provide all the necessary documents. 

• Speak directly to your warranty provider for the most accurate advice. 

Feeling Informed? 

We trust that this information will help you make an informed decision that best benefits you. All it takes is a bit of time on your weekend to check, and it will be time well spent.  

Don’t forget that in addition to useful tips and advice, you can also explore AA Inform and use our Free Vehicle Valuation Report tool. This report can tell you what the value of your vehicle is at trade and at retail value and includes all the relevant information on your vehicle that you may not know, such as make, model, transmission type, engine size, and more. Very handy data for those who want to accurately advertise their vehicles.