Should you sell your car if its motor plan expires?
Owning a car comes with a number of responsibilities. One way of ensuring that you are financially protected is by getting a motor plan.
What is a motor plan?
A motor plan ensures that your car is covered in case it breaks down due to mechanical fault or due to general wear and tear.
A service plan covers the day-to-day running of a vehicle, while a maintenance plan is valid for a fixed period or number of kilometres. It also covers general wear and tear and will pay for an approved facility to service your car according to your manufacturer specifications for a selected time period. A service plan pays for specified aspects of the recommended services of your car by an approved facility for a specific term.
The Maintenance Plan pays for everything included in the Service Plan, plus the replacement, maintenance or repair of specific wear and tear parts when necessary.
The Service Plan pays for the cost of servicing your car in line with the manufacturer’s specified guidelines.
An extended warranty does not provide for service and maintenance work. Before granting an extended warranty, manufacturers will take into account a vehicle’s age and mileage.
If you’re considering if you should sell your car if its motor plan expires, consider this:
According to online auto-dealership CarZar:
“If the warranty is about to run out, sell your car before it ends. This will allow you to hold on to the value of the vehicle. Once the warranty is finished, the value will drop automatically.”
“Similarly, if your motor plan is about to run out, sell your car before it ends.”
If the vehicle is brand new (0km) when you buy it, try to sell within three years, as the plans will still hold value.
If the car is older and out of warranty and motor plan, it’s better to try to sell within two years.
Another good reason to sell your car if its motor plan expires is that the most desirable cars are always ones that still have a motor plan. So a good time to trade your car in would be when your motor plan expires.