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Not trying to say the obvious, but I have done tax consulting for several major manufacturers over the years regarding extended warranties (Toyota, Honda, Nissan). If you read the contract it will tell you the absolute obligations of the warranter (which may be the Motor Company, or more likely is an insurance co owned or controlled by the Motor Co).

Its probably a little more complex, however, since extended warranties are dealer issued and the dealer pockets a high % of the$1400 premium up front (probably 50-60%). Accordingly, the transferability may be something not specified (and therefore not guaranteed) in the contract, but still honored by a specific dealer (would make good business sense in many cases).

greg
 
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