The time has come to sell an older vehicle from your fleet. During this process, you will probably be thinking about its warranty — among other tricky things. That is to say, whether you can transfer the factory warranty to the new owner, or not.
Of course, you may also be wondering if you can, somehow, sell it faster, and at a better price. The good news is, if you have a warranty in effect, you can bargain on its transferable warranty merits.
This may seem like a small detail, at first. However, the question can you transfer the factory warranty remains; and answering it can make a world of difference.
But, first things first! Before we get down to the hot question, we should probably answer what a factory warranty is.
So, what is a factory warranty?
A factory warranty is actually a vehicle insurance policy, provided at purchase, by the manufacturing company. Typically, a vehicle comes with a ‘basic’, or else a ‘bumper to bumper’, warranty. With this type of warranty, the manufacturer promises to cover certain repairs to the vehicle — and for certain parts.
Usually, a basic warranty is valid for a limited number of years, or miles — depending on which comes first. However, vehicle factory warranties vary from one manufacturer to the next. With this in mind, you have to pay attention to the fine print; this way, you will avoid possible warranty issues.
The warranty is attached to the vehicle, not the owner
Generally speaking, the factory warranty is transferable; all in all, it depends on the manufacturer, and, of course, the vehicle. If you purchased the vehicle you mean to sell recently, its factory warranty will probably still be valid. In other words, the warranty is in place until either the prespecified time or mileage runs out. As a result, the vehicle is covered for the portion of the warranty that remains, for the new owner; as it would be for you, the original owner.
Consequently, when a vehicle is sold to someone, the factory warranty is attached to the vehicle, not the owner. Now, for most vehicles, the factory warranty is valid for 3 years or 36,000 mileage. However, some manufacturers will cover for more years/miles.
In some cases, a manufacturer does not allow you to transfer the factory warranty. This means that any time/mileage left in the warranty, you cannot transfer to the new owner. Then again, some warranties require a small transfer fee from the buyer. And in other cases, only a part of the warranty is transferable; in effect, the new owner will get an abridged version of it.
All things considered, it’s in your best interest to confirm your vehicle’s warranty is valid and transferable. And how do you do that? You are about to find out!
Finding out if you can transfer the factory warranty
In most cases, factory warranties are verified based on the vehicle identification number, not the owner’s name. Therefore, the first thing you need to do is find the vehicle identification number (VIN). It should not be difficult to spot; here are a few places to look for it.
Alternatively, you can call the dealership and ask to look up the purchase (or the in-service) date for you. And, while at it, ask the dealer to verify if the warranty is still valid. Double-checking never hurt anybody 😉!
Use some Fleet Management Software to increase the vehicle’s resale value
Tapping into your fleet vehicle telematics data will help you get important information on the vehicle you intend to transfer. Needless to say, it is critical to have a detailed events log for it. Try to include everything: from oil or filter changes and A/C recharges to transmission fluid change, brake repair, and tune-ups. Everything.
By doing so, your fleet business can benefit in the long haul, and on many levels. Most importantly, since we’re talking about transferring, it can increase your vehicle’s resale value.
- Has the vehicle been maintained regularly and properly under your ownership?
- Have you done any repairs on it?
- If so, what kind of repairs?
- Did you make them proactively or after a breakdown?
- What is the vehicle’s mileage?
Answer these questions, and you will have a clear picture of what deal you can strike with a possible buyer.
Leverage your fleet’s warranty management process
OK, you might be thinking right now that answering these questions is a lot of work; and you’re right, it is! You know all too well, that fleet managers have to deal with a ton of fleet information, daily. Fortunately, vehicle management software, like Veturilo, will help you keep close track of any problem. In addition, you can stay on top of maintenance, and leverage your fleet’s warranty management process.
So, not only do you get an automated and streamlined approach to maintenance and repairs; but also make the most of the vehicle’s warranty. By doing so, you can save a lot of money. Not to mention, when you choose to sell a fleet vehicle, you get to negotiate a good price. Your financial department will thank you!
TL;DR — Summing things up
So, your fleet business is evolving, and new needs are slowly forming on the horizon. Sooner or later, you’ll have to give a boost to your fleet with a new fleet vehicle addition. This means that you will probably be replacing an older vehicle. If this vehicle has a valid warranty, you’ll do well to ‘advertise’ this warranty as an added extra. However, there are a couple of things to consider before putting it out in the market.
First, make sure that you’ve checked on the warranty’s transferability. You can easily do so, by checking its VIN and contacting the dealership to get valuable information. The odds are that the vehicle’s warranty is transferable.
Second, investigate the overall health of the vehicle, via detailed maintenance and repair reports. Yet, this may be painstaking and time-consuming. By automating and optimizing this process with a vehicle management system, you gain the upper hand. Meanwhile, you can make the most of the warranty to manage the repair costs and drive the vehicle’s performance. With the above things in check, you can attract more potential buyers; which means, you can sell the car at a better price. The bottom line is, vehicles that are taken care of, last longer and run more efficiently, and have a higher resale value. If you don’t have a vehicle management software up and running, do find the means to invest in one. It will be a game-changer. By all means, check out Veturilo and register today, to start reaping the benefits it offers, as soon as tomorrow.