CRA Vehicle Maintenance & Personal Finance Explored

Should you trade in your car before the warranty expires or you could also consider extending the warranty or taking out warranty cover on your car insurance plan, says Discovery Insure.

 

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Consider the standard warranty plan you get when you purchase a car from a dealership as a safety belt for your wallet.

Mechanical and electrical troubles happen from time to time, but more frequently the older a car gets. This warranty plan helps with the costs of repairing (usually unforeseen) breakages and failures without you having to be out of pocket.

Unfortunately though, standard warranties come with an expiration date.

If yours is due to expire, but you’d still like to safeguard yourself against unexpected pricey repairs, you have several options: you could trade in or sell your vehicle and purchase a new one, extend your existing warranty plan with your vehicle dealer, or take out warranty cover on your car insurance plan.

To help you make the best decision, let’s take a closer look at each option:

 

Trade in

Before trading in or selling your car, ask yourself the following questions:

  • Is your vehicle costing you more than you can afford?
  • What kinds of costs would be involved for different repairs? Could this amount to more than you can afford?
  • Is your vehicle prone to frequent breakdowns?
  • Is your car too expensive for you to run?
  • Does the manufacturer of your vehicle still produce parts, and are these still accessible if an import is required?
  • Can you afford to purchase a new car?

If after you’ve done so, it makes more sense to sell or trade in your car closer to the time of your warranty’s expiration date, then do so.

However, it’s worth noting that the AA has reported that up to 90% of South Africans are keeping their cars for longer — between five and 10 years — due to the tough economy.

If you’re one of them, you’ll need to make sure you can afford to replace or repair critical components if they break. So it may benefit you to look into extending the warranty or adding a warranty benefit to your car insurance plan.

 

 

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Warranty extension

You can purchase an extended warranty plan through a dealer. There are, however, Ts and Cs to be mindful about. Some plans will only cover a percentage of your repair cost needs. In other words, the cover may be capped.

Even if your finances are under strain, it isn’t in your best interest to allow your plan to expire and not purchase an extension — even if you do so for a short period of time until it becomes more affordable. The mechanical and electrical systems in your car will continue to deteriorate in the interim and this could end up “coming back to bite you” later when problems arise.

Skimping on vehicle services is also not a good idea. It could end up costing you more than you were able to save in the interim.

 

Warranty cover on your car insurance plan

If you’ve got a comprehensive car insurance plan, it may be possible to add warranty cover to it.

For instance, Discovery Insure offers a telematics-based Vehicle Warranty Benefit that provides comprehensive cover for 36 critical components of your car — more than many of its industry competitors.

Cover for mechanical breakdown and electrical failure is unlimited, and the premium structure is risk-related, which means you pay a premium for cover that’s reflective of your individual risk profile. Wear and tear cover for insured components is also included.

Essentially, it’s one simple product with a flat excess of your own choice under one comprehensive car insurance plan.

 

Main Image: Discovery Insure’s Vehicle Warranty Benefit provides comprehensive cover for 36 critical vehicle components. Image: Supplied/Discovery

 

 

Read Also: Latest Court Ruling Found AARTO Unconstitutional

 

Article Credit To TimesLIVE Motoring.

 

Have you looked at the alternative options available once your car’s warranty had expired? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.

 

Read Also: How To Check If You Have Outstanding Traffic Fines

 

 

Download your FREE “ICE Contact List and Accident Assist Checklist” here! to assist you when you are at your most vulnerable.

 

 

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