Manufacturer’s Warranty vs Extended Warranty

When you buy a new car, it’s very likely that your new baby will come with a manufacturer’s warranty to help you protect your investment. While this is a great reassurance, after a few years your manufacturer’s warranty will end – leaving you responsible to pay for all costs linked to mechanical and electrical failures.

  1. The 2 types of warranties in the motor industry: The initial manufacturer’s motor warranty
  2. An extended motor warranty

Though these types of warranties differ, they each offer substantial benefits. In this blog article, we want you to understand the key differences between the two.

Manufacturer’s Motor Warranty

A manufacturer’s warranty is a benefit offered by the manufacturer or dealership, with the purchase of your new vehicle. This warranty will  replace defective parts in your car within a specific time period. Those repairs will have to be done by the manufacturer with their own parts and teams, in their own facilities.

Extended Motor Warranty

An extended warranty can be purchased before your manufacturer’s warranty expires; so that you don’t get caught in between them with no cover. In order to make the monthly costs affordable, an extended vehicle warranty covers specific car parts up to a certain value.

When is an extended warranty recommended?

  • When the manufacturer’s warranty on your vehicle falls away.
  • When you have purchased a pre-owned car with over 100 000 km on the odometer.
  • When you haven’t budgeted for mechanical or electrical failures.

Things to consider when buying a Motor Warranty plan:

Your manufacturer’s warranty covers specific repairs to your vehicle for a certain time period. If you decide to get an extended warranty, make sure you know what is covered under your policy and when the coverage kicks in. You can see exactly what’s covered with our Apex Motor Warranty plans here.

Remember, you can buy an extended warranty at any time, not just when you first purchase your vehicle.

The bottom line is that some people enjoy the comfort of knowing that their car is protected well past the manufacturer’s warranty, and that the monthly cost is worth the expense.

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