Extended warranties under the spotlight as cars are kept longer

Rising living costs, pressure on household budgets and the growing age of vehicles on local roads have all contributed to renewed interest in products that can help cushion owners against unexpected repair bills.

According to Lightstone Auto statistics for June 2026, the average age of South Africa’s vehicle parc is now about 10 years and 11 months. Although the share of newer vehicles has improved slightly, moving from 21% in 2024 to 24% in 2026 for cars aged up to five years, a large proportion of passenger vehicles remains much older. Almost half fall within the six to 15-year age range, while 28% are older than 15 years.

For owners of ageing vehicles, an extended warranty can appear attractive. However, Dewald Ranft, National Chairperson of the Motor Industry Workshop Association (MIWA) says motorists should first understand what such a product does and does not offer.

An extended warranty is not the same as a service plan or maintenance plan. Instead, it is a contract that usually applies after the manufacturer’s original warranty has ended and provides cover for selected mechanical and electrical failures. Routine servicing, worn parts, consumables and general maintenance are usually excluded.

Dewald says the value of an extended warranty depends largely on the vehicle, the policy wording and the owner’s circumstances.

“For some motorists, particularly those who intend keeping their vehicles for several more years, extended cover can offer useful peace of mind. What matters is that consumers know exactly what is included, what is excluded and what conditions apply,” he says.

Because warranty products differ widely, motorists should compare options carefully before signing. Important questions include which components are covered, whether labour is included, what exclusions apply and whether there are waiting periods, mileage limits or vehicle age restrictions. Owners should also check whether there are maximum claim amounts, excess payments, approved repairer requirements and strict service conditions.

Another key point is the identity of the provider. Consumers should establish who underwrites the policy and whether the company is registered with the Financial Sector Conduct Authority. This can be important if a dispute arises or if the motorist needs recourse.

Many complaints about extended warranties stem from misunderstandings. Owners may assume a failed part will be covered, only to discover that it is specifically excluded or that the payout is capped. In many cases, policies do not cover the full cost of a repair but pay up to a set amount for a particular component.

This means the cost of the warranty should be weighed against likely repair costs, the vehicle’s mileage, its reliability history and how long the owner plans to keep it. A newer used vehicle with a complete service record may be a stronger candidate for extended cover than an older car with uncertain maintenance history. Unlimited cover may be available in some cases, but it is typically linked to newer vehicles.

Maintenance is also crucial. Most warranty providers require vehicles to be serviced on time and in line with the manufacturer’s schedule. Missing services or failing to keep proper records can place cover at risk.

Dewald says extended cover should never be seen as a replacement for proper vehicle care. Modern vehicles are built to last longer, but only if they are maintained correctly.

When a covered repair is needed, motorists should use reputable and qualified workshops that follow manufacturer specifications and use quality replacement parts. Poor workmanship or inferior parts can affect safety, reduce reliability and potentially compromise future claims.

Ultimately, an extended warranty is best understood as a way to manage financial risk, rather than as protection against every possible repair. For some owners, it can provide welcome reassurance against major mechanical failures. For others, especially those with savings available for repairs, it may be less necessary.

The safest approach is to read the policy carefully, understand the limits of the cover and keep the vehicle properly maintained. As Ranft notes, informed motorists are always in the strongest position.

(Photo: Unsplash)