What Happens To The Aftermarket Extended Warranty When I Sell My Car?

Sell Your Car

Let me ask you a question.

What’s better than free money? I’ll wait…

That’s right. There is nothing better than free money.

And that’s exactly what you could get when you sell a car on which you have purchased an extended or aftermarket warranty.


First, before you get all excited, let’s be clear about what kind of warranties we’re talking about.

If you purchased your vehicle brand new, it included a warranty from the manufacturer something along the lines of a 5 year / 60,000-mile bumper-to-bumper, 10 year / 100,000-mile factory powertrain warranty. If you decide to sell your new car before either the year or mileage limitations expire, any coverage that remains stays with the vehicle and should transfer to the new owners. 

No free money there.

But if you purchased an extended warranty to increase either the time or mileage that your vehicle was covered, or you purchased an aftermarket warranty to provide coverage on a used vehicle. You may have some money coming back to you.

Whether it’s an extended or an aftermarket warranty, every warranty includes limitations base on the length of time passed or the mileage driven from the day you purchased the coverage.

If you sell your vehicle before the time and mileage are up, you are generally entitled to a prorated refund based on the date and mileage at the time of the sale.

As purchasing and financing a new or used vehicle has increased in complexity over the years, thousands of new financial products have been developed to offer options to car buyers.

When you bought your car, whether it was new or used, you were probably taken to a small office to take care of the paperwork, where you were offered multiple different protection and maintenance products.

Wheel & Rim Insurance, Prepaid Maintenance Plans, Lifetime Warranties, GAP Insurance.

The list goes on, and since they all include the same limitations based on time and mileage, you could have money coming your way from all of them

When you sell your car to one of Vehicle Hero’s dealer partners, we’ll work with you to make sure you collect every cent that’s coming to you.

Vehicle Hero will help you verify any warranty coverages that you have on the vehicle that you are selling.

It would be helpful if you still have the original purchase contract for the warranty. You’ll need to verify the limitations and specifications for each plan to see if you qualify for a refund and if those funds can be delivered to you or straight to the bank or other lender that financed the purchase.

Then we’ll get you the certified odometer reading statement with your actual mileage listed and the notarized bill of sale that confirms the date of your transaction. The warranty company will use that documentation to calculate the pro-rated amount of any return you have due.

Enter your VIN here to sell your car faster for a higher price with less hassle and maybe just maybe a get a little free money in the process.

Benjamin Dykstra, VehicleHero.com

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