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Warranties and service plans - everything you need to know

All the info you need about purchasing an extended service plan or warranty for your pre-loved car

You’ve found the car of your dreams, but the manufacturer’s warranty has expired.

Buying a pre-loved car is smart and has many pros, especially if you buy an ‘almost brand new’ one; like the fact that it can leave you with more money at the end of your month and you can still afford to live a little.

But the biggest factor that stops most of us from buying pre-loved is that the service plan and, or, warranty has just expired. It’s this detail that drives most new vehicle sales. We’ve all heard the tale of the dreaded worst-case scenario where a newly bought car has had a sudden expensive mechanical issue when out of warranty, and it doesn’t end well. The good news is that when financing your pre-loved car through RCS Car Finance, you can buy another warranty or extend the existing one.

Buying another warranty or extending the existing warranty

Warranties are not exclusively issued by the manufacturer. They are an insurance product, so if a part fails, it can be replaced. Simple as that. A warranty is comparable to disability cover for your car. When you buy a car through RCS Car Finance you have the option of adding an Extended Warranty policy. There are different plans to meet cars’ mileage or age and a list of mechanical items covered under the extended warranty.

Smart tip: You’ll still need to budget to replace wear-and-tear items like brake pads and tyres, which aren’t covered by a warranty. Find out how much these parts might cost for your vehicle so you aren’t caught by surprise. And, warranties won’t cover you if your vehicle is modified. So bear that in mind if you have plans to ‘pimp your ride’.

Making smart choices: Service Plans

Don’t be caught having to spend your food budget for the month on a service because you weren’t prepared for the service light to come on – it doesn’t have to be this way!

A service plan is a type of insurance that can be purchased to cover your car servicing requirements. Think of an extended service plan as medical aid for your car. When buying your car privately with the assistance of RCS Car Finance, you can add an extended service plan that is fulfilled by a registered service provider. This means you can splash your cash guilt-free. Gold star for making smart decisions!

Your car is still under warranty even though the service plan has ended; what are your options?

Service plans and warranties are two different products, the first covers mechanical part failure, the second covers maintenance.

Smart tip: Warranties on average run for 3-years/100 000km, whichever comes first. Lots of manufacturers are extending their product-warranty lifespan towards the 5-year/150 000 km point and sometimes more. Check whether your intended purchase still has a valid warranty when buying and you could save a randela or two.

Are you currently looking to buy a car? Do you want RCS to help you find, check and finance your car? 

RCS is a registered credit and authorized FSP. NCRCP38/FSP44481

-ENDS-

This is a sponsored post

Images: iStock

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