The cost of car ownership is rapidly rising. Not only are new and used vehicle prices climbing, but financing these purchases is also becoming more expensive with higher loan values. But the biggest challenge for South African vehicle owners is the increasing cost of maintenance.
Maintaining a new car valued at around R350,000 can result in total expenditures exceeding the average monthly repayment by 55%, putting strain on already cash-strapped consumers, according to a recent study.
Expect the Unexpected
While you can’t predict when issues with your vehicle will arise, you can take proactive steps to ensure you’re prepared. Comprehensive car insurance protects you in the case of major accidents. However, it doesn’t cover mechanical or electrical failures, regular services, roadside assistance, or tyre and rim protection.
This is where Motor Plan Direct’s suite of value-added products and services help, ensuring you have financial protection and support for all eventualities. These include:
- Motor Warranties – A motor warranty is designed to cover the cost of mechanical or electrical breakdowns. If a vehicle part malfunctions, the repair cost can be extensive, making a warranty a practical financial decision.
- Service Plans – Preventative maintenance is crucial to keeping cars running efficiently. A service plan covers the regular services a vehicle needs, such as oil changes, filter replacements, and basic vehicle servicing. Maintaining these fundamentals is a proactive approach to avoiding escalating costs as vehicles age.
- Tyre & Rim Cover – This add-on product provides coverage for the repair and replacement of tyres. If you accidentally damage a tyre or rim, like in the case of hitting a pothole, you won’t be left with the unexpected cost of replacing it.
- Scratch & Dent Cover – Keeping a vehicle’s bodywork pristine can add tremendous resale value, but repairing scratches and dents can become costly. This type of cover allows you to claim for the repair of chips, minor dents, and light scratches.
- Excess Waiver – If your vehicle is involved in an accident, there is often an amount over and above what insurance pays out, called an excess. By paying a monthly fee, you can waive this excess, ensuring full coverage in the event of an accident claim.
- Credit Shortfall – Should your car be written off in an accident, stolen, or hijacked, a credit shortfall pays the financial gap between what is paid out by the insurer and the outstanding amount still owed on a finance agreement.
- Roadside Assistance – Breaking down on the side of the road is not only stressful but can also be dangerous. Roadside assistance provides rapid emergency support—usually 24/7—to ensure your safety and that of your passengers.
While you’ll need to pay for these products monthly, the costs are minimal compared to the potential expenses you might face due to major mechanical breakdowns, unexpected services, and accidents caused by faulty or worn parts.
Protect your vehicle and your wallet – request a free Motor Plan Direct quote for the cover you need.
