Understanding Used Car Warranties:
Coverage & Benefits
Buying a new car is a super exciting time and a significant investment. However, like any investment, it comes with some risks. Unexpected repairs and financial uncertainties could occasionally arise. This is where warranties and payment protection insurances come into play, offering crucial safeguards that maximize the benefits of buying a used car. Let’s explore why these warranties are so important, complete with examples to illustrate their benefits.
Coverage for Unexpected Repairs
Imagine you purchase your new car, and it’s been great, no issues at all and you’re extremely happy with your decision, then 2.5 years down the track the transmission fails. Repairing or replacing a transmission could cost several thousand dollars. A warranty such as Protecta’s MBI (Mechanical Breakdown Insurance) could cover these repair costs, saving you from unexpected and substantial expenses. This coverage ensures that you aren’t likely to have to dip into your savings or incur debt to keep your car running.
We offer Mechanical Breakdown Insurance on every vehicle we sell for that extra peace of mind.
Safeguarding Financial Stability
Life is unpredictable. Unfortunately, from time to time we encounter some rather stressful situations, perhaps you lose your job unexpectedly or suffer a serious illness that prevents you from working. Payment Protection Insurance (PPI) would cover your car loan payments during this period, ensuring you don’t fall behind on payments or risk repossession of your vehicle. This financial safety net allows you to focus on getting back on your feet.
Extra Protection in the Event of a Total Loss
The part no one wants to think about when financing a vehicle – in the event your vehicle is declared a total loss through accident or theft, your insurance payout may not be enough to cover the balance outstanding on your loan. Even if there is no money owing, you could be out of pocket for unforeseen expenses, as well as needing to replace your vehicle.
Guaranteed Asset Protection (GAP) provides you all the protection you will need if this occurs, including not needing to continue making your finance repayments on a car you no longer can drive or own. GAP would cover the shortfall, give you a $4,000 deposit towards your new vehicle as long as it’s from the same dealership that you purchased your ‘total loss’ one from, and also $3,000 cash for the inconvenience – sounds like a good deal to us!
Cash buyers can also benefit from GAP, where there would be no shortfall but you would still be eligible for the $4,000 deposit towards your next car from the same dealership, and $3,000 cash for the inconvenience.
Want to learn more? Discuss with one of our salespeople today – we’re more than happy to help!
