There are several important factors to consider before making a decision about what type of extended warranty you need to purchase:

• The manufacturer’s new car warranty needs to expire before the extended warranty kicks in.
• Your vehicle’s components will likely start giving problems a few years after the purchase date. Our data shows that most modern cars remain trouble-free for a few years after the expiration of the original manufacturer’s warranty.
• Extended warranties only offer limited cover for certain mechanical parts. Some products have long lists of components that are excluded from the cover. It is important to make sure you understand what is included and what is excluded from the cover. Research is starting to show that a transmission or engine failure is no longer likely. These components are now more reliable than ever. However, the computer controls in modern cars are not so reliable. A single failed ‘Control Computer’ can cost $ ’000’s to replace.
• Read the fine print – all extended warranties typically have many exceptions that can be found at the end of the policy document. Make sure you understand the exceptions otherwise the provider will use these exceptions to deny your claim.
• Your investment is protected when purchasing an extended warranty.  It will give you peace of mind knowing that your car is covered for a wide range of mechanical and electrical faults with no excess to be paid.
• There are always options to pay for high or low mileage cover If you don’t drive many kilometers per year, then it is best to go for a low mileage cover, and vice versa.
• Most extended warranty plans offer the options of making a single upfront payment or of paying the cost of the warranty in easy monthly instalments.
• Win-win if you decide to sell.Sell privately with a transferable warranty – and great resale value or receive a pro-rata refund for your remaining cover.