Whether you’re still loving your current car and not quite ready to trade-in and trade up, or looking at a vehicle that is out of its warranty, we have a few options you can consider. We often find that many of us assume that once our service plans or warranties have expired, we just have to swallow and accept the extremely high expenses that might occur with car ownership. However, an extended warranty could be just the thing for you.
Many manufacturers are now offering extended-plans, and your sales executives can give you all your options. The costs differ from product to product – some are bought up-front and valid for a certain time period, while others can be purchased monthly.
WP Motors Advice:
Pay your warranty upfront and not as part of your finance agreement, that way you don’t pay interest on the product.
Extended warranties are definitely applicable to pre-owned cars, and while some requirements need to be met, like the vehicle is under 12-years old, having less than 250 000km with a full service history and more, they can extend the life of your pre-owned vehicle.
Some extended warranties include benefits like roadside assistance or rental cars.
These plans generally cover mechanical failures like your gearbox, engine, electronics and braking systems. Make sure you read your paperwork carefully so you know exactly what your extended warranty is covering as parts like batteries, brake pads, car diagnostics, poor labour, fan belts, and aircon units as these are classified as wear and tear.
Be careful not to void your extended warranty by trying to save a few Rands and do your own oil service. It’s easy to do, but not worth giving up your extended warranty for.
Some questions you can ask when looking at extended warranties:
- Is there a decrease in benefits over the years?
- Do you have a limited set amount of claims each year or for the total life of the plan?
- Do you have a limited value to your claims?
- Do you have a waiting period before you can claim?