Motoring Correspondent
1 minute read
7 Nov 2018
9:25 am

Read the fine print of your motor plan

Motoring Correspondent

In some cases, a warranty can sound great on paper, but impose a heavy hidden cost.

Consumers are facing yet another fuel price hike. Image: Twitter/@WhichCar

Whether you buy a brand-new or used car, you should consider a motor plan, warranty and/or service plan. These can offer significant peace of mind, but issues can arise if you do not understand the fine print.

The general manager of car retailer getWorth, Wesley Procter, warns the devil is in the detail and if car owners aren’t familiar with the fine print, they could find that they have no, or only partial cover, when they need it most.

“Make sure you service within the manufacturer’s recommended intervals – both time and mileage,” Procter says. “The manufacturers may allow a small amount of leeway, for example 1 000km or one month over, but if you fall outside their parameters you risk invalidating the plan.”

In some cases, a warranty can sound great on paper, but impose a heavy hidden cost.

Procter says there are many new cars being sold with limited or no maintenance plans, but generous warranties.

“To keep the warranty intact, the owner is locked in to using an approved service centre – normally a franchise dealership – for work needed,” he says.

“This can be more expensive than independent third-party work.”

The fine print in the warranty and plan terms also creates a risk for used car buyers.

“You may think you are buying a used car that still has a plan, only to find that the previous owner acted outside the detailed conditions and it is invalid,” adds Procter.

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