I investigated this about a year ago when I bought my car.
Proposed warranty: 2yr/unlimited mileage mechanical warranty. Cost was about R13,000.00.
Based on the age and mileage of my vehicle (8yrs/ 103000kms), I fell within Category 2, covered amounts below:
Components Covered
Engine R30 000
Transmission R25 000
Differential R25 000
Management System R10 000
Braking System R8 000
Steering R8 000
Fuel System R8 000
Cooling System R8 000
Electrical Components R8 000
Electronic Ignition R8 000
Air-Conditioner R8 000
Clutch R12 000 R8 000
Suspension R8 000
Wheel Bearings R8 000
Emission System / Catalytic Converter R8 000
Overheating / Overfueling R6 000
Cambelt Failure R6 000
Central Locking R3 000
Electric Sunroof Motor R3 000
Drive Pulley’s R3 000
Electronic Key R3 000
GPS System R3 000
DVD System R3 000
Phone System R3 000
Internet System R3 000
Installment Payment Protection R1 500
Insurance Excess Payment R1 500
Towing Assistance R1 500
Vehicle Hire / Public Transport R1 500
Overnight Accommodation R1 500
NOTE: This is all that is covered, if it's not on the list, it is not covered.
Some other important things to note:
- All servicing and maintenance to be done by a dealership / RMI approved service centre. You will need the invoices, and proof of servicing and that the service centres are accredited.
- If buying the vehicle 2nd hand and it does not have FSH, then a service is required within 30 days.
- No preexisting conditions are covered
- No preventative maintenance is covered
Right, time to move onto the fun stuff....
It's all good and well having coverage of the components above, and while the amounts seem substantial, it's a drop in the ocean in the bigger scheme of things.
Example: engine troubles (policy cover = R30k).
In the first scenario, say your car goes into limp mode, and the throttle actuators need to be replaced. The parts cost is R26k, then add on a couple of hours for labour, diagnostics etc, and very quickly you will reach the R30k covered by the policy.
Next scenario, engine failure, say as a result of running rod bearings. I looked at a car that had an engine replacement done by BMW. The cost: R278k! So now suddenly R30k is not going to go very far at all.
Example: brake troubles (policy cover = R8k)
I'm not sure what unforseen event could take place, but maybe you ended up attending a track day (non-competitive), did a few superman laps, and after that your brakes were kaput. You take a chance and try log a claim for poor braking performance / squeal / uneven wear or whatever the case.
Some parts prices from when I enquired last year:
Front discs: R4655ea
Front pads: R2380
Sensor: R280
So that's nearly R12k just for front brakes, excl. labour. Warranty will cover some, but not everything.
Last example: suspension (policy cover = R8k)
Maybe alignment is out, or there are some unpleasant noises coming from the front, and it's time for new shocks. If your car has EDC, prepare to be ripped a new one....
Front Shocks: R13500ea
EDC controller: R15100ea (these mount on top of the shock).
So if you're lucky and need shocks only, R27k. The R8k covered by the warranty won't even cover a third of the cost.
In summary, if you really close your eyes and squint carefully, you can possibly justify the peace of mind of having the warranty. On paper, it absorbs SOME of the cost, but at the end of the day there is still likely to be a massive shortfall which you will need to settle.
As others have said, rather keep the money aside, as well as budgeting extra for preventative maintenance. e.g spend R25k to get the bearings replaced, and have peace of mind, as opposed to driving a time bomb with a potential R278k engine replacement on the cards.
That being said, I think on 'cheaper' cars it is more viable, as the components are not as expensive. On my wife's old A3, we had a warranty which cost R6500 at the time, and they covered the cost of replacing the hydraulic lifters (R12k I think). In that case it was beneficial, but there was also no real need to costly preventative maintenance to be done on that car.
Sorry for the long post, but I hope it helps with some perspective.
**Walks away from pc depressed and rekindling the numb nuts decision to buy a M car**
[font=Tahoma, Verdana, Arial, sans-serif]:hammerhead:[/font]
