Selling a car with a service contract still running is not the same as selling it without one. The contract may allow the buyer to take over the remaining term, it may allow the transfer only with a fee or a form, or it may not allow a transfer at all. Find out which of those applies before you write the listing.
Read the transfer clause first
Look for the section that describes transfer, assignment, or change of owner. Note whether a transfer is allowed, what the provider requires to process it, who must sign, whether the new owner must be told in writing, and whether any charge applies. If the clause is missing, ask the provider for the rule in writing before you advertise the car as coming with coverage.
Confirm the record matches the car
Before the sale, make sure the provider's record shows the correct vehicle and the correct current owner. A mismatch can stall the transfer at the exact moment a buyer is waiting on paperwork. Ask the provider what identifying details it uses so you can check them against the car.
Ask what happens to the unused term
Ask whether the coverage stays with the car and the new owner, or whether it ends with your ownership and any unused money-back or refund route belongs to you. Get the answer in writing. A verbal answer from a phone call is useful for planning but will not help you if the buyer later disputes it.
Ask about claims in progress
If a repair is open or a claim is pending on the day of the sale, ask who handles it and whether the new owner inherits it. Write down the claim number and the date you notified the provider. Do not assume the buyer will know the status of a claim you started.
Hand over the paper, and keep proof
At the hand-off, give the buyer the contract, the transfer form if one is required, and any receipts that show past service. Keep a copy of everything you handed over. Ask for a written confirmation from the provider that the transfer is complete, and keep it with your sale records.
If the contract does not transfer
When a contract cannot be transferred, read the cancellation section before you talk to the buyer. Find out whether a cancellation refund is available, how it is calculated, who receives it, and how long it takes. Send any cancellation notice the way the contract requires, and keep proof that it arrived.