Miles and years set the stage, but the exit is written in the contract. Before you sign, find out what happens if you sell the car, trade it in, or simply want out. Those answers often sit in a few short clauses that are easy to skip.
Transfer: does the contract travel with the car?
Some contracts can move to a later owner when the vehicle is sold. Others are tied to the original buyer and end at the sale. Ask the seller whether transfer is allowed, what form it takes, who signs, and whether a fee applies. Get the answer in writing. If the contract says transfer is possible but names no steps, ask for the steps before you buy the car.
Cancellation: how you get out, and what comes back
Cancellation terms usually cover three things: who may cancel, how the request must be sent, and how any unused part of the price is calculated and returned. Read which party must start the request, whether it must be in writing, and what counts the time or mileage used in the calculation. Ask whether a claim already paid during the term reduces the return.
Read the exit against the odometer
Mileage matters at exit too. A contract may end at whichever comes first of a mileage limit or a date. If the car has passed a printed limit, the exit may differ from what the buyer expected. Check how the contract records mileage at cancellation, and whether the odometer reading, a service record, or an inspection is used. For how printed limits change at higher mileage, see the page on printed limits at higher mileage.
Questions to ask before you pay
Ask whether the contract can transfer to a later owner. Ask who starts a cancellation and how it is sent. Ask what formula returns any unused part of the price, and whether a paid claim lowers that return. Ask whether the exit route stays the same after a transfer. Get each answer in writing, then compare it against the contract text, not the sales talk.
What this page does not say
This is a general explainer. It does not describe any company's transfer or cancellation terms, and it does not say which contract is better. Published figures for named companies appear in the site's tables, which list what each company prints. Read the printed terms rather than a summary, and keep a copy of what you sign. The published scoring rubric explains how the tables are built.