Monday, 7 January 2013

Extended manufacturers' warranties

Like car servicing, the subject of extended manufacturers’ warranties is sure to spark debate amongst the frugal and non-frugal alike.

Basically, a manufacturer’s warranty is a promise from the vehicle manufacturer to rectify faults that occur during the warranty period.  Generally, the motor vehicle and all accessories fitted at the time of sale are covered by the warranty. If a defect occurs during the warranty period, the dealer is obliged to fix the defect (including both parts and labour) at no cost to the customer so that the vehicle is in reasonable condition for its age.  An extended warranty extends this coverage for a set period of time and/or kms.

If you are considering paying for an extended warranty, please keep the following points in mind.