Motor Warranties vs Motor Plans
When purchasing a new vehicle, it is important to find out what all of your options are, and this doesn't just mean finance and insurance. Motor warranties and motor plans are added options that many women don't know about. Those who do know about them may not understand exactly what they include or exclude. This is where you can make the wrong decision for your personal requirements but a mistake is easily avoided.
This is according to Robyn Farrell, 1 st For Women director. She explains, “Some consumers confuse motor warranties with motor plans, believing that they are the same. This is not the case though, and both have an important role to play. When buying a new car, it is very important to make sure that your options around warranties and plans are carefully explained by the dealer and fully understood by you. Don't feel foolish if you ask what may seem to you to be obvious questions; the salesperson you are dealing with is obliged to make sure that you know exactly what your options are. It is sensible to ask the dealer or sales representative for a signed copy of the items covered by the warranty or plan, including the period for which it is valid.”
A motor warranty is a guarantee of the reliability of the car under conditions of ordinary use. If your car malfunctions in any way within a certain period of time, the manufacturer or dealer, is required to provide you with a repair, replacement or refund, at no charge. Most new vehicles come with a factory warranty while most consumers are given the opportunity to purchase an extended auto warranty. It is usually a standard three year or 100 000 kilometer deal provided by the manufacturer, at no cost to the consumer. Most dealers provide the opportunity to extend the warranty for a further two years with unlimited mileage, for a specific cost.
A motor plan provides two options: A service plan, which covers engine-related items such as air filters, and a maintenance plan, which covers wear and tear items such as brake pads. These plans can be added to your finance costs and are usually for a period of three years, or 60 000 kilometers. After that, maintenance costs start increasing and are not as easy to predict as in the first 60 000 kilometers.
Farrell says, “While a service or maintenance plan can be of great benefit if you are unlikely to have spare cash to pay for services or unexpected maintenance expenses, it is important to bear in mind that you are paying interest on the plan when it is added to your finance costs. You need to weigh up the benefits of paying additional interest in the long run, but not having to worry about outlaying any money during the period the plan covers, against rather budgeting for your servicing and maintenance costs and paying cash each time, thereby saving on interest.”
She concludes, “Above all, don't confuse a motor warranty or plan with insurance. Your vehicle insurance is a different matter entirely and is your number one essential, covering you for theft and accident damage.”
1st for Women Insurance offers women “Cover with Care”. For more information on 1 st for Women Insurance Brokers, visit 1st for Women Insurance