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Can a business sell a warranty?

(That's also an important lesson for businesses that sell warranties: They aren't just financially lucrative; if you service them well you can make someone a customer for life even if their equipment breaks.) ... For businesses, the stakes are considerably higher.

What happens to warranties when a business is sold?

A warranty is a written statement provided to the purchaser to back up claims you have made about the business during the sales process. The buyer may not easily be able to verify your claims and statements when they sign the sale agreement, so a warranty provides them with some protection in this respect.

What happens to warranties when a business closes?

If a manufacturer goes out of business, the consumer may be able to rely on a retailer warranty. Many extended warranties and service plans are provided and administered by third parties and are typically not affected by a retailer or manufacturer closing its doors.

What is a vendor warranty?

Vendor warranties are promises provided by a vendor to the buyer as part of a business sale agreement. Essentially, the vendor will be promising to the buyer that a particular state of facts exists. Vendor warranties are important for the buyer, as they provide certainty that the buyer is getting what they pay for.

How do you find out if a business has gone out of business?

Finding Out if a Company Has Gone Out of Business. Contact the state where the business is registered. Companies must register with the State Secretary or Division of Corporations where they conduct business. This is public information that is usually searchable online.

What are the different types of warranties A company can offer?

The two main types are express and implied warranties. An express warranty is one that is clearly stated (or “expressed”) either verbally or in writing, while an implied warranty automatically covers most consumer goods valued over a certain amount, but only provides a base level of protection for consumers.

How do I sell my extended warranty?

If you want to actually sell the protection plan, be customer-focused and train your employees on the soft skills of communicating and problem-solving. Then make sure they match the compelling benefits of a protection plan with products that deserve them. Then you can increase your sales of extended warranties.

Can I sell back my extended warranty?

If you trade in or sell the car or the car is totaled in an accident before the extended warranty expires, you can get a pro-rated refund for the amount of unused warranty, assuming you purchased a refundable warranty.

How is extended warranty refund calculated?

The pro rata refund will be calculated by multiplying the service contract purchase price by the lesser percentage of the unused months or unused miles compared to the total months or total miles of your services contract, less an administrative fee of $50 or 10% of the refund amount, whichever is less.

Can you buy extended warranty after purchase?

Dealers often try to sell the convenience of rolling coverage into a new-car loan, but that means you may be paying up front for coverage that you already have with the factory warranty. You can purchase an extended warranty after buying the car, although you may find the cost increases as the vehicle ages.

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