In today’s economic climate, many of us are looking for ways to save money without compromising on quality and safety. One smart strategy is to keep your current used car and invest in a Motor Warranty. When you invest in a Motor Warranty, you can avoid the high costs of buying a new vehicle while ensuring your existing car remains reliable and cost-effective to maintain.
Is a Motor Warranty cheaper than buying a new car?
In most cases, keeping your used car and buying a Motor Warranty is far more affordable than buying a new vehicle. New cars come with steep monthly payments, higher insurance rates, and rapid depreciation. A Motor Warranty, on the other hand, is a small monthly investment that can save you significantly in the long run.
For the price of around 10% of a monthly car repayment, you can protect your vehicle from costly repairs with a Motor Warranty. You can enjoy the benefits of a reliable vehicle without the financial burden of a new car purchase.
The financial benefits of keeping your used car
Avoiding depreciation
New cars lose value rapidly, with some models depreciating by up to 20% in the first year alone. When you keep your used car, you avoid this significant financial hit and maintain a more stable asset value.
Lower insurance premiums
Older cars typically have lower insurance premiums compared to new vehicles, giving you ongoing savings. This difference can add up to substantial amounts over time, putting more money back in your pocket.
No monthly vehicle installments
With a paid-off car, you won’t have to worry about monthly repayments. This frees up a significant portion of your budget for other essential expenses or to add to your savings.
The importance of a Motor Warranty
Protection against unexpected repairs
As your car ages, the likelihood of mechanical issues increases. A Motor Warranty can cover the costs of these repairs. Your Motor Warranty ensures that you’re not caught off guard by sudden, expensive breakdowns.
Maintaining vehicle value
Regular servicing and repairs, facilitated by a Warranty, help maintain your car’s value should you decide to sell in the future. A well-maintained vehicle with a comprehensive service history is more attractive to potential buyers and can command a higher resale price.
Save thousands on repairs with a Motor Warranty
Did you know that a single major repair, like a gearbox replacement, can cost as much as a year’s worth of Motor Warranty coverage? These expenses always crop up at the worst time, and the costs add up fast. A Motor Warranty ensures that you’re prepared for these situations.
Instead of scrambling to find money for repairs, you’ll know that your Warranty has it covered.
Motor Warranty FAQs
Q: How much can I save with a Motor Warranty compared to buying a new car?
A: While exact savings vary, a Motor Warranty typically costs around 10% of a monthly new car repayment, potentially saving you thousands of Rands over time.
Q: Will a Motor Warranty cover all repairs on my used car?
A: Motor Warranties cover a set list of components, up to set limits. Make sure to select a Warranty option that best suits your vehicle and budget. Check the specific terms of your Warranty with Bidvest Insurance for detailed coverage information.
Q: Can I get a Motor Warranty for any used car?
A: Most used cars qualify for Motor Warranties, but factors like age and mileage may affect your car’s eligibility. Contact Bidvest Insurance for a personalised assessment.
Keeping your used car and investing in a Motor Warranty is a smart financial decision for South African drivers. A Warranty helps you avoid the high costs of purchasing a new vehicle, while ensuring your current car remains reliable and cost-effective. Save money and buy a Motor Warranty from Bidvest Insurance.
