Extended warranty transfers?

[tls]

We've got a Ford EV (one of our Mach Es, but we carry the ford extended warranty on all of them) that we're going to let our kid take to college this year. We're in New York. College is in Massachusetts.

I've just discovered that between a rats' nest of registration and insurance rules, waivers, etc. the most economical way to ensure the kid has liability coverage if anything happens is going to be to put the car in their name. Even though the title transfer will incur some tax (or use up some gift exemption - same net effect, I worked it through).

I've searched the forums, and I know this has come up before, but I can't quite find the answer. Is it possible to transfer the vehicle while leaving the extended warranty in place?

I know they will give a pro-rated refund, but that is not what I want, really - I don't want the hassle of re-purchasing the extended warranty and anyway the vehicle now has more miles on it and I'd have to work through the implications of what that would mean cost wise.

We bought the warranties for all 3 of our Ford EVs through @Granger Ford and it was a good purchasing experience. Have not had to use any of them yet, though I expect to at my next service visit for the Lightning.

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[Zed]

From the Ford Protect EV contract Terms and Conditions:
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11A. TRANSFERABILITY: You may transfer this Agreement, subject to a $75 transfer fee. You or the transferee of this Agreement must initiate the transfer process by providing the following items to any Ford or Lincoln dealership or to Us at P.O. Box 6045, Dearborn, Michigan 48121 within 180 days of the vehicle sale:
(i) a letter, signed by You, transferring this Agreement to the transferee; (ii) a statement of the mileage on the Vehicle at the time of transfer; and (iii) the name and address of the transferee.

You may not transfer coverage if the Vehicle becomes a Branded Vehicle or is repossessed. Transferred Agreements may not be cancelled.
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I bought mine through Granger as well. You could probably call them and ask about transferring.

 

[RickLightning]

We've got a Ford EV (one of our Mach Es, but we carry the ford extended warranty on all of them) that we're going to let our kid take to college this year. We're in New York. College is in Massachusetts.

I've just discovered that between a rats' nest of registration and insurance rules, waivers, etc. the most economical way to ensure the kid has liability coverage if anything happens is going to be to put the car in their name. Even though the title transfer will incur some tax (or use up some gift exemption - same net effect, I worked it through).

I've searched the forums, and I know this has come up before, but I can't quite find the answer. Is it possible to transfer the vehicle while leaving the extended warranty in place?

I know they will give a pro-rated refund, but that is not what I want, really - I don't want the hassle of re-purchasing the extended warranty and anyway the vehicle now has more miles on it and I'd have to work through the implications of what that would mean cost wise.

We bought the warranties for all 3 of our Ford EVs through @Granger Ford and it was a good purchasing experience. Have not had to use any of them yet, though I expect to at my next service visit for the Lightning.

Not a lawyer, nor an insurance expert.

But, if a child is a dependent, then the liability rests with you. Putting a car in their name, with insurance in their name, when they live at home while not in college, absolves you of nothing.

Transferring title to a family member in most places incurs no tax. It's a simple title change. As for gift exemption, yes would need to file a form with your taxes that you gave of gift of that value. It would simply lower your lifetime exemption.

Extended warranty remains with the vehicle, as noted. Again, if you're simply giving your child the vehicle, I wouldn't bother with the $75 fee, it's never going to come up that it was "transferred" when the child lives in your house. Check with Granger to verify.

 

[tls]

I understand the liability issues. There is a bad interaction of NY insurance regs, MA vehicle registration requirements, and our insurer's internal pricing systems which appears to make it about a thousand bucks cheaper per year if we retitle the vehicle in the kid's name. Honestly if it were a couple hundred bucks I might just deal with it to avoid the hassle, but, a thousand bucks is definitely enough for me to care.

 

[TaxmanHog]

Definitely pursue the ESP transfer for $75 route, I don't think Granger will sell your child a fresh ESP for 2022 Lightning at this point based on recent discussion on other threads.

IRS Form-709

Talk to your accountant about the implications of gifting a multi tens of thousand dollar asset to your child, and the implications against your present/future assets and the lifetime estate tax exemption.

It might be a moot issue for most folks, but a select few could have substantial impact, BTW you nor the kid pay the tax, it's just an adjustment to your lifetime exemption ... unless you're multi--million/billionaire with a large taxable estate already, that situation is a little different.

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