A service contract is attached to a vehicle in your life, but the paperwork usually names you as the buyer. When you sell, trade, or give away the car, that gap decides who keeps the protection, who gets any refund, and who has to do the paperwork. Find the transfer language before anyone shakes hands.
The situations that change the answer
A private sale, a trade-in at a dealer, and a transfer to a family member can each lead to a different result. Some contracts allow a transfer to a new owner. Others end the contract when ownership changes. Some let the seller cancel and keep a partial refund. Some require notice inside a set window. Treat each situation as a separate question rather than assuming one rule covers all of them.
What to read in the transfer clause
Look for who must request the transfer, and whether the request has to come from the original buyer, the new owner, or both. Find the deadline, if there is one. Check whether the new owner must meet the same vehicle age or mileage conditions that applied at purchase, since a car that is older or higher in miles by the time it changes hands may no longer qualify for the same terms. Note whether a transfer creates a new document or simply updates the old one.
Questions to ask the provider
Is transfer allowed for this contract, and under what conditions? Who receives any refund if the contract is cancelled at the time of sale? Does the transfer require the new owner to accept the terms in writing? Is there an administrative step, such as a form or a confirmation, that must be completed? How will you know the transfer is finished? Get the answers in writing and keep them with the sale paperwork.
What to keep for your own records
Keep a copy of the signed contract, every notice you send, the date you sent it, and the written reply. If you cancel instead of transferring, keep the cancellation confirmation and proof of where any refund was sent. Your records protect you if the buyer later says the protection went with the car and the provider says it did not.
If the contract is unclear, the document itself governs. Ask the provider to confirm the answer in writing rather than relying on the seller's understanding or a verbal summary.