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If your car warranty is due to expire, you have several options – you could trade in your vehicle, extend your existing warranty plan with your vehicle dealer or take out warranty cover on your insurance plan.
South Africa’s retail car market has seen some interesting shifts in pricing trends through 2020 and 2021. New car sales struggled through much of the pandemic; while those of used cars more than doubled as consumer demand and global supply shortage challenges influenced the market (according to the TransUnion SA Vehicle Pricing Index).
Affordability along with the reduced vehicle imports and non-availability of parts, especially semiconductors and microchips had a significant impact on the market.
Many consumers have shifted towards purchasing used vehicles as a result. The AA has reported that up to 90% of South Africans are keeping their cars for longer - between five and ten years. Car owners, however, do have the option of selling or trading in.
Questions to ask yourself before deciding to trade in your car?
- Is the 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 it makes more sense to sell closer to the time of your warranty expiration date, then do so. You also have the option of protecting your car and your pocket with the purchase of a warranty extension or even warranty benefit on a car insurance plan.
Why have a vehicle warranty in place?
Mechanical and electrical troubles happen from time to time, but more frequently the older a car gets. Simply put, warranty plans help with the costs of repairing (usually unforeseen) breakages and failures breaks without you having to be out-of-pocket - and this can be costly.
Standard warranty plans from a dealership often have an expiration date. It’s good to have one in place as plans help to take care of unexpected problems that may arise.
What options do you have when it comes to warranty?
If, like many South Africans, you’re opting to keep your vehicle, you’ll need to make sure you can afford to replace the critical components if they break.
- 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 (i.e., cover may be capped).
If finances are under strain, it isn’t in your best interest to allow your plan to expire and not purchase an extension – even if for a short period of time until it becomes more affordable. Mechanical and electrical systems 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.
- Alternatively, you can consider a warranty benefit on a comprehensive car insurance plan. It gives you the best form of cover you need under one plan.
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 (meaning that you pay a premium for cover that is reflective of your individual risk profile). Wear and tear cover for insured components is also embedded. Essentially, it’s one simple product with a flat excess of your own choice under one comprehensive car insurance plan.
Get a quote in 60 seconds here
This post and content is sponsored, written and provided by Discovery.
