Are you thinking about buying a used car? Or perhaps you’ve already bought one and are feeling a bit unsure about its mechanical or electrical state. Did you know that you can extend the motor warranty of any used vehicle by buying an extended car warranty?
Most used car dealers will offer a short motor warranty – SA warranties are usually 30 days or 2,000 kilometers (whichever comes first). Really cheap vehicles are sold cash as they stand (voetstoots), and will come with no motor warranty.
An extended car warranty is an insurance product that’s developed to protect your car against mechanical or electrical failure, after the manufacturer’s warranty has expired.
In South Africa, you’re able to select an extended car warranty provider that can offer you a number of product options. These options have different levels of warranty at different prices – giving you greater cover when you need to claim.
How much does an extended car warranty cost?
Let’s consider, for example, you’re interested in buying a used Toyota Corolla 1.6. The vehicle is 2 to 4 years old, with between 40,000 and 80,000 kilometers on the clock. It also has a full service history.
For a used vehicle with this profile, you can expect to pay between R126 and R277 per month for an extended motor warranty from a reputable insurance company.
Some of the important components that should be covered are:
|Component||Value of cover|
|Engine||R12 500 to R20 000|
|Gearbox||R8 000 to R12 500|
|Clutch||R1 000 to R4 000|
|Electrical||R3 000 to R4 000|
|Differential||R8 000 to R12 500|
Most insurance companies should also include handy benefits like:
|Benefit||Value of cover|
|Vehicle hire – usually a 2-day rental in the event of mechanical repair or service of your vehicle||R500 to R1 000|
|Hotel accommodation – usually covered if your breakdown occurs in excess of 300 km from your place of residence||R500 to R1 000|
|Vehicle towing – usually covered in the event of a valid claim||R500 to R1 000|
Your level of cover increases as you pay more for the motor warranty. It can also decrease a potential shortfall if you discover that it will cost more to repair or replace an item. Many SA warranties also offer additional benefits like medical evacuation from an accident or road side assistance.
What are the benefits of an extended car warranty?
- Peace of mind: Your vehicle can be protected against unforeseen mechanical malfunctions (e.g. engine or gearbox failure) that are not covered by a general service or maintenance plan
- Saving money: An extended car warranty is like financing potential repairs at below cost
- Backing and support: You’ll receive assistance from the company that backs your extended car warranty. Many of us are at the mercy of professional mechanics. It’s not a problem if they are honest and trustworthy, but unfortunately, this is not always the case
- Your warranty can inform the repairs company that you are not alone and that you have immediate assistance if you need it
- Maximum resale value: A motor warranty is transferable to the next owner of the car, so it can increase your resale value.