EXTENDED WARRANTIES

An extended warranty kicks in only once the manufacturer’s standard warranty (which could be from two to six years) has expired.

Although the extended warranty – in effect, an insurance product – covers some unexpected electrical and/or mechanical failures, it does not provide for service and maintenance work. However, it does cover the really serious problems, which may include engine or gearbox failure, a broken CV joint, propshaft failure, a broken cooling system and wheel-bearing failure.

Before granting an extended warranty, manufacturers will take into account a vehicle’s age and mileage.

For example, a fourth-year (150 000km) “genuine extended warranty” for a Toyota Corolla 1800 Prestige costs R2 410 (quoted in December 2015). A fifth-year (180 000km) warranty comes in at R3 000, and a sixthyear (220 000km) contract ups the ante to R3 890. The warranty has to be taken out during the standard three-year/100 000km manufacturer’s warranty, and the vehicle must have a full Toyota service history.

Toyota also offers a pre-owned warranty for all its passenger and light commercial vehicles, with the exception of the Quantum Ses’Fikile (the ubiquitous minibus taxi). Among the terms: the vehicle should not be older than six years (from the initial date of sale) and may have an odometer reading of no more than 180 000km.

Kerry Cassel, the managing director of MotorHappy, points out that extended warranties will be honoured only if motorists fulfil their obligations in terms of servicing and maintenance at the prescribed intervals or mileage limits.

A second-hand car may qualify for a socalled “balance of warranty” (representing the remainder of the original warranty period). In this case, the new owner will receive the same benefits as the original driver, but the duration of cover will depend on the vehicle’s age and mileage.