Purchasing and maintaining a vehicle is an expensive undertaking and even entry level vehicles in South Africa now retail for over a R100 000. When calculating the cost of ownership you shouldn’t just rely on the purchase price, but should also factor in running and maintenance costs.
Once you analyse the numbers you will realise just how costly it is to own a car. Many manufacturers bundle a service or motor plan with their new vehicles. Usually these are valid for a specified time period and mileage limit.
When should you consider an extended motor warranty:
- Cover expensive repair costs. As your car gets older, the likelihood of mechanical failure increases. The average cost of a car repair is over $1,000. A motor warranty can help cover the cost of these repairs, so you don’t have to come out of pocket.
- Budget for repairs. A motor warranty can help you budget for repairs by providing a fixed monthly or annual cost. This can be especially helpful if you’re on a tight budget.
- Protect your resale value. A motor warranty can increase the resale value of your car. Buyers are more likely to purchase a car with a motor warranty, knowing that they’re protected from costly repairs.
- Get peace of mind. A motor warranty can give you peace of mind knowing that you’re covered in case of a major repair. You won’t have to worry about coming up with the money to fix your car, and you can focus on enjoying your driving experience.
- Get additional benefits. Some motor warranties come with additional benefits, such as roadside assistance, trip interruption coverage, and rental car reimbursement. These benefits can be a valuable added bonus.
Before signing any contract you need to do your homework and get answers to the following questions,
- What is covered under the extended motor warranty plan
- What the motor warranty plan doesn’t cover
- What the monthly premiums are likely to be
Different plans have varying features and you need to study the various options available and select the extended motor warranty plan that meets your needs.
Common Motor Warranty FAQs
What does a motor warranty cover?
A motor warranty typically covers the cost of repairs to the major components of your car, such as the engine, transmission, and electrical system. Some warranties may also cover other components, such as the air conditioning system, brakes, and tires. The specific coverage will vary depending on the warranty provider and the type of warranty you purchase.
How long is a motor warranty?
The length of a motor warranty can vary from one provider to another. Some warranties are for a specific number of years, while others are for a specific number of miles. It’s important to read the fine print of the warranty to find out exactly what is covered and for how long.
How does a motor warranty work?
When your car needs a repair that is covered by the warranty, you will need to take it to a qualified repair shop. The repair shop will then contact the warranty provider to get authorization for the repair. Once the repair is authorized, the warranty provider will reimburse the repair shop for the cost of the repairs.
How to choose a motor warranty
When choosing a motor warranty, there are a few things you’ll need to consider:
- The type of coverage you need. Make sure the warranty covers the major components of your car that you want to be protected.
- The length of coverage. You’ll need to decide how long you want the warranty to last.
- The deductible. The deductible is the amount of money you’ll have to pay out of pocket before the warranty kicks in.
- The cost of the warranty. Motor warranties can range in price from a few hundred dollars to several thousand dollars.
It’s important to shop around and compare different motor warranties before you make a decision. You can get quotes from different providers online or by calling them directly.
A motor warranty can be a wise investment for many car owners. It can help you cover the cost of expensive repairs, protect your resale value, and give you peace of mind. If you’re considering buying a motor warranty, be sure to do your research and choose a reputable provider.
Here are some additional tips for choosing a motor warranty:
- Read the fine print. Make sure you understand all of the terms and conditions of the warranty before you buy it.
- Get multiple quotes. Get quotes from several different providers before you make a decision.
- Ask about discounts. Some providers offer discounts for military members, seniors, or members of certain organizations.
- Be prepared to negotiate. Don’t be afraid to negotiate the price of the warranty.
With a little research, you can find a motor warranty that’s right for you and your budget.
Brock Harrington is a distinguished figure in the world of finance, known for his exceptional expertise and deep insights into the complex landscape of financial markets and strategies. With a solid educational foundation and a career spanning decades, Brock has earned a well-deserved reputation as a finance guru in South Africa.
Brock’s journey into the realm of finance began with his relentless pursuit of knowledge. He earned his Bachelor of Commerce (BCom) degree, laying the groundwork for his illustrious career. His time as a student allowed him to develop a strong analytical mindset and a keen eye for spotting opportunities within the financial sector.
Building upon his early academic success, Brock Harrington went on to pursue a Master of Business Administration (MBA) degree. This advanced education not only broadened his horizons but also honed his skills in strategic financial planning, risk management, and investment analysis. Armed with these qualifications, he was well-prepared to navigate the intricacies of the financial world.
