Often, the first step in knowing what something is; is to simply understand what it isn’t… Your vehicle’s warranty is not the same thing as your Service Plan or Maintenance Plan*, but they are related. You should always service your vehicle at the recommended intervals or risk voiding your warranty.
*If you’re unsure about the differences between Service Plans and Maintenance Plans this article is for you.
When purchasing a new vehicle, it usually comes with a standard Manufacturer Warranty which ends once you’ve reached a specific number of kilometres or years. You can choose to purchase an “additional” warranty when this happens which is known as an Extended Warranty. Below we have a look at how the two are unique.
This is the company who made your car’s way of saying: “The new vehicle you’ve bought shouldn’t give you any major mechanical grief and if it does we’ll help take care of it.” In other words, the manufacturer warrants* to pay for repairs and replace critical parts & components should they break within a specific number of KM’s or elapsed time-period.
*Manufacturer Warranties are all different: Always refer to the contract provided by your dealership or manufacturer if you’re feeling unsure.
You can extend your existing coverage on your car by purchasing an Extended Warranty. Generally, Extended Warranties are designed to take effect once the Manufacturer’s Warranty ends and provides for seriously costly mechanical breakdowns and electrical failures. You can find a list of these here.
Extended Warranties may only pay up to a certain amount and not necessarily cover the entire bill. They also do not provide for scheduled services or the replacement of wear-and-tear items. A LiquidCapital Service Plan/LiquidCapital Maintenance Plan could take care of those expenses.
Understanding the terms of both your Manufacturer’s- and/or Extended Warranties pays off in the long run.
Disclaimer – Our blog is a space where we discuss all things automotive and value-added products. Although we always strive to be as accurate as possible, the information and tips shared in these articles are for educational purposes and do not constitute legally binding advice: Always refer to your OEM guidelines in terms of your vehicle and the terms & conditions if you have purchased a value-added product.
*All financial products as defined in the FAIS Act that is provided through LiquidCapital is underwritten by an authorized insurer.