WEBVTT - Consumer Talk 1: Difference between a motor warranty and a motor plan

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<v Speaker 1>Now, as I mentioned at the top of the hour,

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<v Speaker 1>for consumer Talk today with things doing things a little

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<v Speaker 1>bit differently since Wendy isn't available today, So for this

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<v Speaker 1>first conversation taking us to the headlines with Zulfa, we're

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<v Speaker 1>going to be looking at the difference between motor plans

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<v Speaker 1>and motor warranties and the problem with them is that

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<v Speaker 1>you often find out the difference between the two only

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<v Speaker 1>when something has gone wrong with your car and you

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<v Speaker 1>realize that you are not covered for the repair. And

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<v Speaker 1>we're going to be speaking in just a second to

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<v Speaker 1>Erica Liedenberg from Just Money to explain the difference and

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<v Speaker 1>what you should be looking out for. And then the

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<v Speaker 1>second half of the hour, we're going to be talking

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<v Speaker 1>about how a tech platform is helping South Africans to

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<v Speaker 1>access their unclaimed benefits from, among others, the retirement industry.

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<v Speaker 1>Did you know there's more than ninety billion rand in

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<v Speaker 1>unclaimed assets in the country, some of it could be yours.

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<v Speaker 1>All right. Let's start though, with looking at the difference

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<v Speaker 1>between a motor plan and a motor warranty and to

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<v Speaker 1>make sure that you are choosing the right one when

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<v Speaker 1>buying a car and in ensuring that you've got the

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<v Speaker 1>right one, that you therefore have the right cover when

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<v Speaker 1>those unforeseen car repairs hit. We've got to Erica Liebenberg

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<v Speaker 1>from Just Money with Us, and that is a platform

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<v Speaker 1>that helps consumers make good money choices, which I'm here for. Erica,

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<v Speaker 1>thanks very much indeed for joining us. Money is tight

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<v Speaker 1>for an awful lot of South African households, and just

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<v Speaker 1>the thought of suddenly being slapped with an unexpected car

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<v Speaker 1>repair bill can make things very, very difficult for most

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<v Speaker 1>of us. Give us an idea, you know, I mean,

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<v Speaker 1>what's the range when it comes to what repairs could

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<v Speaker 1>generally cost. I suppose it's how long is a piece

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<v Speaker 1>of string?

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<v Speaker 2>It is to an extent, Sarah Jane. But you know,

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<v Speaker 2>we've sort of got some starting points that we can consider.

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<v Speaker 2>So you know, of the twelve million self propelled vehicles

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<v Speaker 2>that are registered in South Africa as of November last year,

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<v Speaker 2>most of them are cars and station wagons. So it

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<v Speaker 2>just gives you an indication of how many cars are

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<v Speaker 2>actually on the road and for each of those vehicles,

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<v Speaker 2>you know, obviously maintenance where and tear services, all of

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<v Speaker 2>those things are an issue. You know, if you have

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<v Speaker 2>a look at labor rates at franchise dealerships, you're looking

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<v Speaker 2>at anything between eight hundred to fifteen hundred grand per hour,

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<v Speaker 2>So that's just for labor. And then parts are very

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<v Speaker 2>often important. So if they're not after market parts, meaning

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<v Speaker 2>you know, non genuine parts, if you like, not Toyota

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<v Speaker 2>specific or manufactured by Toyota, you know, those are slightly cheaper,

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<v Speaker 2>but the genuine parts are often imported. And you know,

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<v Speaker 2>certainly when your vehicle's at the beginning of its life,

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<v Speaker 2>you want to be going to a registered franchise. You

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<v Speaker 2>want to be using the right parts, you know, the

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<v Speaker 2>genuine parts, because that all affects your vehicle resell value

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<v Speaker 2>as well. Once your service plan runs out or once

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<v Speaker 2>your vehicle gets a little bit older, people tend to

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<v Speaker 2>start looking more towards those after market parts. Those are

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<v Speaker 2>a little bit cheaper. But to give you an indication,

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<v Speaker 2>if you need to replace your brake pads on a

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<v Speaker 2>mid rad you're looking at two thousand to three and

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<v Speaker 2>a half thousand grand. A clutch replacement on a hatchback

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<v Speaker 2>can cost you ten thousand grand. And then if you

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<v Speaker 2>look at premium vehicles, you're looking at fifty thousand grand

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<v Speaker 2>or more if a turbocharger or gearbox goes, and believe

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<v Speaker 2>me when I tell you, they go and usually at

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<v Speaker 2>the least convenient times, and generally when your maintenance plan

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<v Speaker 2>or your warranty has just run out. Most listeners would

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<v Speaker 2>be able to relate to that.

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<v Speaker 1>So let's talk through those two things that Normally when

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<v Speaker 1>you buy a car, the dealership tries to sell you

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<v Speaker 1>a motor plan or a warranty, and these terms are

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<v Speaker 1>often used interchangeably. But they're not the same thing, are

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<v Speaker 1>they What is the difference?

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<v Speaker 2>No, absolutely not the same thing at all, Sarah Jane,

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<v Speaker 2>and crucial to know what the difference is. It's important

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<v Speaker 2>to note as well, many new cars do come with

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<v Speaker 2>both a motor plan and warranty bundle together, and then

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<v Speaker 2>it becomes even more confusing as you know in general

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<v Speaker 2>that you're covered. But a motor plan basically helps you

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<v Speaker 2>manage the cost of keeping your car in good running condition,

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<v Speaker 2>meaning it may include a service plan and a maintenance

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<v Speaker 2>plan or both. That's your motor plan, so a warranty

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<v Speaker 2>and will break down what a service plan the maintenance plan

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<v Speaker 2>are and what the differences are. But if we look

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<v Speaker 2>at a motor warranty that's also called a factory or

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<v Speaker 2>manufacturer warranty, and that's always automatically included with a new

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<v Speaker 2>car because that's a requirement, and it usually lasts for

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<v Speaker 2>a six period like three to five years, or up

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<v Speaker 2>to a certain mileage like one hundred thousand or even

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<v Speaker 2>two hundred thousand kilometers. But it only covers unexpected mechanical

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<v Speaker 2>or electrical failures in key components like your engine or gearbox,

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<v Speaker 2>or if a part fails suddenly going to a manufacturing fault.

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<v Speaker 2>What it doesn't cover is if a part wears out

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<v Speaker 2>over time, and it doesn't cover your routine services. That's

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<v Speaker 2>what your motor plan is for.

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<v Speaker 1>It's it's a guarantee of the of the the quality

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<v Speaker 1>of the car essentially in the you know, it's not

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<v Speaker 1>wear and tear. If you drive you know, this car,

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<v Speaker 1>then then obviously there's going to be where in tear.

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<v Speaker 1>But it's it's a it's a guarantee of this is

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<v Speaker 1>we we put our name on this for X number

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<v Speaker 1>of years.

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<v Speaker 2>Absolutely, it's that in a very similar way to buying

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<v Speaker 2>a large electrical appliance. Yeah, you know, if you buy

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<v Speaker 2>a you know, a reputable brand dishwasher or you know,

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<v Speaker 2>fridge for example, that will come with a warranty. And

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<v Speaker 2>again as exactly as you say, that's the stamp of

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<v Speaker 2>quality from the manufacturer to say, you know, we certify

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<v Speaker 2>that we know that this product is going to last

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<v Speaker 2>you at least x amount of time. If anything goes

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<v Speaker 2>wrong within that time, that owes to a manufacturing fault,

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<v Speaker 2>we stand by our product and will cover it for you.

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<v Speaker 2>But if you slam the fridge door hard and the

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<v Speaker 2>handle comes off in your hand, that is not going

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<v Speaker 2>to be covered. That's wear and tear, and very similar

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<v Speaker 2>with a motor plant. So if we break down what

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<v Speaker 2>a motor plant is, that is a service plan. It

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<v Speaker 2>can be comprised of one or both of these things.

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<v Speaker 2>Either a service plan which covers the cost of your

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<v Speaker 2>routine services according to the manufacturer's schedule. So that would

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<v Speaker 2>be you know, for example, your tenenty fifteen, twenty five, thousand,

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<v Speaker 2>and so forth, services that are required. If you want

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<v Speaker 2>your cart to stay in good working condition, and that

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<v Speaker 2>includes laboring parts, then you might also, as part of

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<v Speaker 2>your motor plan, have a maintenance plan, and that includes

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<v Speaker 2>everything in a service plan, plus the replacement of parts

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<v Speaker 2>that wear and tear over time, or we're out over time,

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<v Speaker 2>like brake pads, the clutch, the battery. It will also

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<v Speaker 2>cover mechanical and electrical failure, so you know, in that

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<v Speaker 2>respect you would probably find a little bit of overlap

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<v Speaker 2>between a motor warranty and a maintenance plan. But again,

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<v Speaker 2>the warranty will not cover you for anything related to

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<v Speaker 2>wear and tear. That's where your maintenance plan kicks in.

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<v Speaker 1>If you're just joining us this afternoon, it is consumer talk,

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<v Speaker 1>no Wendy this afternoon though. Instead we're looking at a

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<v Speaker 1>couple of issues that we thought you might like to

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<v Speaker 1>be aware of. The First one, we have asked Erica

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<v Speaker 1>Liebenberg from Just Money to drop by and help us

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<v Speaker 1>out to understand the difference between a motor plan and

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<v Speaker 1>a motor warranty. When you buy a car, I wonder,

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<v Speaker 1>then what options might one have, Erica, when the cover expires,

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<v Speaker 1>what other options are there for you to kind of

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<v Speaker 1>offset the costs of repairing your cart, Because for some people,

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<v Speaker 1>they're never going to be in a position they might

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<v Speaker 1>be able to afford a monthly premium, but they might

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<v Speaker 1>not be in a position to be able to afford

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<v Speaker 1>fifty thousand round for a you know, to redo their

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<v Speaker 1>gears or whatever.

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<v Speaker 2>No, absolutely, there are quite a few options available, thankfully,

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<v Speaker 2>because I think very very few of us are in

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<v Speaker 2>the fortunate position of being able to cover such high

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<v Speaker 2>repair cost. The first would be if it's available to

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<v Speaker 2>buy an extended warranty or buy an extended service or

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<v Speaker 2>maintenance plan or bor if those are offered. So if

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<v Speaker 2>you buy an extended warranty, this will cover the same

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<v Speaker 2>things or most of the same things as an original warranty,

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<v Speaker 2>some mechanical and electrical failures, but it's very very important

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<v Speaker 2>to check what's included in that. And then your extended

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<v Speaker 2>service or maintenance plan. Again, that would cover your routine

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<v Speaker 2>servicing if it's a service plan, or your wear and

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<v Speaker 2>tear items if it's a maintenance plan. And you can

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<v Speaker 2>buy those extended service and maintenance plans for specific time

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<v Speaker 2>frames or mileage limits. And again it varies widely in

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<v Speaker 2>terms of what they cover, so it's absolutely crucial before

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<v Speaker 2>you part with money, which can be between fifteen to

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<v Speaker 2>thirty thousand grand, you know that you check what is

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<v Speaker 2>included in those extended plans. The other option that you've got,

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<v Speaker 2>and it's the one that you noted, and I think

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<v Speaker 2>very few people are in that position. As you also noted,

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<v Speaker 2>is to pay out of pocket, so that would give

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<v Speaker 2>you probably the most flexibility, but it leaves you hugely

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<v Speaker 2>exposed to sudden and potentially very large expenses. The other

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<v Speaker 2>idea is to actually have a dedicated savings account set aside,

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<v Speaker 2>so you literally put a certain amount of money each

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<v Speaker 2>month into that savings account to cover your future car costs.

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<v Speaker 2>We call this self insurance in a sense. But it's

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<v Speaker 2>important that if you're going to take that option that

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<v Speaker 2>you understand you may still have a shortfall. It could

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<v Speaker 2>still be substantial depending on what you're sitting aside, and

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<v Speaker 2>it's crucial to put your money in a high interest

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<v Speaker 2>bearing account. It's got to at least keep up with

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<v Speaker 2>inflation rates, otherwise your money is just going to not

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<v Speaker 2>be of the same value over time. And then the

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<v Speaker 2>final option, which I think is quite a good one.

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<v Speaker 2>It's probably amongst the most viable options for most of us,

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<v Speaker 2>is to trade in or sell your car while it

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<v Speaker 2>still has a decent resell value. So once your car

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<v Speaker 2>looks like it's going to start incurring high repair costs,

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<v Speaker 2>it's worth looking at selling it. You might have your

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<v Speaker 2>own limit. In our family, we tend to get rid

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<v Speaker 2>of cars when once they start hovering around the two

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<v Speaker 2>hundred thousand kilometer mark, because if at that point they're

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<v Speaker 2>still running nicely, there haven't been any major repair expenses,

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<v Speaker 2>we can sell them in good conscience and you know,

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<v Speaker 2>still get a reasonable value and put that value towards

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<v Speaker 2>a newer vehicle that's covered by a warranty or service

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<v Speaker 2>and maintenance plan. So that's your that's your fifth option.

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<v Speaker 2>And you know, really choosing between those options depends on

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<v Speaker 2>you know, your driving habits, your car's age, and your

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<v Speaker 2>financial situation. Those are all the things that you need

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<v Speaker 2>to take into account.

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<v Speaker 1>Do you think that it's always going to be worth

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<v Speaker 1>somebody getting a getting a maintenance plan? I mean, what

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<v Speaker 1>are some of the things that you should.

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<v Speaker 3>Care sitting up?

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<v Speaker 2>Yes, go on, So sorry I lost you completely there.

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<v Speaker 1>The line seems Oh, no worries, No worries, Erica. Sorry,

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<v Speaker 1>I was just asking do you think it's always worth

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<v Speaker 1>somebody getting a maintenance plan? What are the things that

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<v Speaker 1>one ought to consider when buying a car and deciding

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<v Speaker 1>on the type of motorpath? I mean, are some cars

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<v Speaker 1>just if somebody's just kind of buying a little run

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<v Speaker 1>around for less than one hundred thousand round, Is it

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<v Speaker 1>then worth it to have a motor to have a

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<v Speaker 1>maintenance plan?

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<v Speaker 2>Look, it really depends on the kind of driving that

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<v Speaker 2>you're doing and also your risk appetite, because you know,

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<v Speaker 2>for some of us, you know, I'm very risk averse

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<v Speaker 2>when it comes to things like insurances, and I make

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<v Speaker 2>sure I'm fully fully covered, so I will poney up

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<v Speaker 2>personally for the highest premiums because I cannot stand the

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<v Speaker 2>idea that I'm going to have a mechanical failure. And

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<v Speaker 2>I have faced that situation before and I've just found

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<v Speaker 2>for myself it's really worth it. But it comes down

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<v Speaker 2>to whether you clock up high mileage or you drive

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<v Speaker 2>in tough conditions. Under either of those circumstances, the likelihood

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<v Speaker 2>that you're going to face a really expensive repair bill

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<v Speaker 2>are high. They're really quite high. So you know, either

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<v Speaker 2>high mileage which all tough conditions, or both are where

0:12:01.960 --> 0:12:04.080
<v Speaker 2>a service or maintenance plan can really help you to

0:12:04.080 --> 0:12:08.080
<v Speaker 2>budget more predictably and help you upset what I personally

0:12:08.120 --> 0:12:11.559
<v Speaker 2>would consider too hire a risk to take. If your

0:12:11.600 --> 0:12:15.040
<v Speaker 2>car is, you know, relatively new, you've run out of

0:12:15.080 --> 0:12:17.920
<v Speaker 2>service plan or you've run out of you know, warranty

0:12:17.920 --> 0:12:19.960
<v Speaker 2>because it's a it's an older vehicle, but you're not

0:12:20.040 --> 0:12:24.080
<v Speaker 2>driving it very much. Your driving habits tend to be moderate.

0:12:24.240 --> 0:12:26.439
<v Speaker 2>You are not driving rough roads, you're not driving much.

0:12:26.520 --> 0:12:28.439
<v Speaker 2>Your car lives in your garage most of your time.

0:12:29.000 --> 0:12:32.000
<v Speaker 2>You know, zing you could possibly look atself ensuring, you know,

0:12:32.080 --> 0:12:35.200
<v Speaker 2>setting aside that money to say, Okay, if something does

0:12:35.280 --> 0:12:39.160
<v Speaker 2>go wrong, it's pretty unlikely. I'm getting my services done.

0:12:39.400 --> 0:12:41.960
<v Speaker 2>You know, they're not picking up anything disastrous. My car

0:12:42.040 --> 0:12:43.520
<v Speaker 2>is still only got you know, I want to say

0:12:43.520 --> 0:12:46.320
<v Speaker 2>fifty thousand on the clock. The chances of something going

0:12:46.360 --> 0:12:49.600
<v Speaker 2>catastrophically wrong are pretty limited. I'm not going to worry

0:12:49.640 --> 0:12:53.120
<v Speaker 2>about paying for an extended warranty or motor plan. You know,

0:12:53.520 --> 0:12:56.120
<v Speaker 2>that would be the option I would go for under

0:12:56.160 --> 0:12:59.720
<v Speaker 2>those conditions. And you know, whichever option you go for,

0:12:59.800 --> 0:13:02.720
<v Speaker 2>if absolutely crucial to read the fine print, because what

0:13:02.880 --> 0:13:06.000
<v Speaker 2>your original warranty covered may not be the same as

0:13:06.000 --> 0:13:08.560
<v Speaker 2>what your extended warranty might cover, and the same with

0:13:08.600 --> 0:13:11.120
<v Speaker 2>a motorplane. You've got to got to read that fine print.

0:13:11.160 --> 0:13:13.839
<v Speaker 2>There is nothing worse, and I think most of us

0:13:13.840 --> 0:13:17.120
<v Speaker 2>can relate to this then, you know, putting forward a

0:13:17.200 --> 0:13:19.880
<v Speaker 2>large sum of cash only to find out that the

0:13:19.960 --> 0:13:22.040
<v Speaker 2>one thing that goes wrong with your vehicle is the

0:13:22.120 --> 0:13:24.040
<v Speaker 2>one thing that it doesn't cover. What are the.

0:13:24.000 --> 0:13:26.760
<v Speaker 1>Common things that they don't that it wouldn't cover? Erica,

0:13:26.880 --> 0:13:29.600
<v Speaker 1>is there can you highlight that for our listeners at all?

0:13:29.679 --> 0:13:31.040
<v Speaker 1>Is there something that you're like, you know what?

0:13:31.480 --> 0:13:31.800
<v Speaker 4>This is?

0:13:31.960 --> 0:13:33.680
<v Speaker 1>Very often what isn't covered there?

0:13:35.120 --> 0:13:38.559
<v Speaker 2>Yeah, Look, it varies so widely, it's hard to say.

0:13:38.600 --> 0:13:40.840
<v Speaker 2>The real rule of thumb just comes down again to

0:13:40.920 --> 0:13:43.840
<v Speaker 2>the fact that warranties are not going to cover wear

0:13:43.920 --> 0:13:47.080
<v Speaker 2>and tear. It doesn't matter how good your extended warranty is.

0:13:47.640 --> 0:13:50.440
<v Speaker 2>Unless you can prove, for example, that a handle fell off,

0:13:50.520 --> 0:13:52.800
<v Speaker 2>or a light broke out, or the econ stopped working

0:13:53.200 --> 0:13:56.280
<v Speaker 2>because of a manufacturing polt, you're not going to get

0:13:56.280 --> 0:13:58.320
<v Speaker 2>that covered under a warranty. And then, of course the

0:13:58.360 --> 0:14:01.280
<v Speaker 2>owners of previous on you, and that can be very,

0:14:01.360 --> 0:14:06.080
<v Speaker 2>very difficult. If you've got a good supplier and you

0:14:06.120 --> 0:14:08.360
<v Speaker 2>know they're giving you a full breakdown of what's gone

0:14:08.360 --> 0:14:11.080
<v Speaker 2>wrong with your vehicle, and they're honest with you, they

0:14:11.120 --> 0:14:13.599
<v Speaker 2>are going to make sure that whatever they can to

0:14:13.679 --> 0:14:15.720
<v Speaker 2>the full extent possible, they will push it through under

0:14:15.760 --> 0:14:18.240
<v Speaker 2>your warranty, but you can't be you know, that is

0:14:18.320 --> 0:14:21.120
<v Speaker 2>not a guarantee. There are so many things, and of

0:14:21.160 --> 0:14:23.680
<v Speaker 2>course some of the time it's really hard to say

0:14:24.040 --> 0:14:27.120
<v Speaker 2>whether something was actually a manufacturing fault or whether it

0:14:27.200 --> 0:14:29.240
<v Speaker 2>was war and fear over time. And I think you

0:14:29.280 --> 0:14:31.480
<v Speaker 2>know that's something that applies not just to cars, but

0:14:31.560 --> 0:14:35.280
<v Speaker 2>also to electrical appliances. There can be a hidden fault

0:14:35.280 --> 0:14:39.200
<v Speaker 2>that is virtually undetectable unless there's a product recall. You

0:14:39.320 --> 0:14:42.320
<v Speaker 2>never found out and you end up having to pay

0:14:42.360 --> 0:14:44.520
<v Speaker 2>the cash yourself to get something six it was actually

0:14:44.520 --> 0:14:48.280
<v Speaker 2>a manufacturing fault, but neither you nor the service technician

0:14:48.480 --> 0:14:52.480
<v Speaker 2>are the wiser to that. So the warranty is really

0:14:52.640 --> 0:14:56.600
<v Speaker 2>really so limited in that respect. So to me, you know,

0:14:56.920 --> 0:15:00.720
<v Speaker 2>a motor plan can mitigate that risk to and extinct

0:15:01.520 --> 0:15:03.960
<v Speaker 2>insofar as if it is wear and tear and it

0:15:04.080 --> 0:15:07.680
<v Speaker 2>is something that is subject frequently to warrantear like breaks,

0:15:07.720 --> 0:15:12.360
<v Speaker 2>they pads, clutch battery, earboxes, you know, those sorts of things,

0:15:12.880 --> 0:15:15.280
<v Speaker 2>then you are going to be covered for those kinds

0:15:15.320 --> 0:15:18.080
<v Speaker 2>of things. The other thing to bear in mind with

0:15:18.160 --> 0:15:20.720
<v Speaker 2>this conversation is that if you are in an accident

0:15:21.280 --> 0:15:24.440
<v Speaker 2>and something breaks, that's not wear and tear, and that's

0:15:24.520 --> 0:15:28.760
<v Speaker 2>not warranty, you know, specific or applicable. That is a

0:15:28.800 --> 0:15:31.760
<v Speaker 2>different issue again, and that is where your car insurance

0:15:31.800 --> 0:15:34.360
<v Speaker 2>comes in. And the only thing that's going to cover

0:15:34.440 --> 0:15:37.800
<v Speaker 2>you for, supposing that you've got fully comprehensive insurance, is

0:15:37.840 --> 0:15:43.360
<v Speaker 2>that accidental damage, their fire and third party planes. None

0:15:43.440 --> 0:15:45.920
<v Speaker 2>of those things are going to be covered by your warranty.

0:15:46.000 --> 0:15:48.240
<v Speaker 2>So you could be real or motor plans, so you

0:15:48.280 --> 0:15:51.720
<v Speaker 2>could be really unlucky. Let's say, and you've got something

0:15:51.800 --> 0:15:55.400
<v Speaker 2>that is wrong with your vehicle inherently already and it's

0:15:55.480 --> 0:15:58.360
<v Speaker 2>kind of about to fall off or about to go haywire,

0:15:58.440 --> 0:16:00.360
<v Speaker 2>or whatever the case may be. Then you get in

0:16:00.360 --> 0:16:04.400
<v Speaker 2>an awful accident. Let's say somebody bumps into you from

0:16:04.440 --> 0:16:08.200
<v Speaker 2>behind and that item gets damage. You're never going to

0:16:08.200 --> 0:16:10.800
<v Speaker 2>be able to show that that wasn't a result of

0:16:10.840 --> 0:16:14.680
<v Speaker 2>the damage, and that's where your insurance was kicking. So

0:16:14.760 --> 0:16:17.360
<v Speaker 2>that's another important thing to take in mind.

0:16:17.480 --> 0:16:19.120
<v Speaker 1>We've had a couple of voice notes that I want

0:16:19.160 --> 0:16:21.240
<v Speaker 1>to take a listen to Eric here, if you can

0:16:21.280 --> 0:16:24.080
<v Speaker 1>just bend with this just for a second, let's take

0:16:24.120 --> 0:16:27.320
<v Speaker 1>a listen. Christopher and Wesley have sent these voice notes.

0:16:27.080 --> 0:16:31.040
<v Speaker 4>In Hi, SJ. Thanks for the great show. Question from

0:16:31.040 --> 0:16:37.200
<v Speaker 4>our side. Just recently procured an older vehicle with low

0:16:37.280 --> 0:16:42.040
<v Speaker 4>mileage which I financed, and the finance house, a well

0:16:42.080 --> 0:16:46.840
<v Speaker 4>known finance house, apparently had a stipulation that I had

0:16:46.880 --> 0:16:49.560
<v Speaker 4>to take out an extended warranty on the vehicle, I e.

0:16:50.000 --> 0:16:55.760
<v Speaker 4>An aftermarket to a motor light warranty. So another standard warranty.

0:16:56.080 --> 0:16:59.760
<v Speaker 4>Is that a finance requirement? Or was I taken for right?

0:17:01.160 --> 0:17:03.920
<v Speaker 1>Okay, Erica, maybe you want to jump back jump in there.

0:17:04.000 --> 0:17:07.439
<v Speaker 1>Would that ever be a requirement of y a finance

0:17:07.520 --> 0:17:07.920
<v Speaker 1>got right?

0:17:08.000 --> 0:17:13.159
<v Speaker 2>Okay, definitely the listener can take hard. You definitely have

0:17:13.400 --> 0:17:16.280
<v Speaker 2>not been taken for a ride. It's very similar to

0:17:16.400 --> 0:17:18.080
<v Speaker 2>when you take out a bond on your house. You

0:17:18.119 --> 0:17:21.480
<v Speaker 2>are required to pay out in to adequately cover that property.

0:17:21.480 --> 0:17:24.040
<v Speaker 2>Because at the end of the day, if that vehicle

0:17:24.160 --> 0:17:27.119
<v Speaker 2>is a lemon, and we really hope not, the financing

0:17:27.160 --> 0:17:29.160
<v Speaker 2>house is going to require you to repay that loan

0:17:29.240 --> 0:17:31.120
<v Speaker 2>is full and they want to know that you're able

0:17:31.160 --> 0:17:31.520
<v Speaker 2>to do that.

0:17:32.040 --> 0:17:34.480
<v Speaker 1>Let's just take a listen to Wesley's voice note.

0:17:34.480 --> 0:17:43.840
<v Speaker 3>Please and always there from Geval from personal experience, I

0:17:43.880 --> 0:17:49.919
<v Speaker 3>had a I bought a brand new vehicle and I

0:17:49.920 --> 0:17:56.119
<v Speaker 3>had an accident. Unfortunately, due to certain fine brand in

0:17:56.520 --> 0:17:59.520
<v Speaker 3>the insurance, they would not pay for it because the

0:17:59.680 --> 0:18:04.760
<v Speaker 3>refew and the parts alone just to repair a fender,

0:18:04.880 --> 0:18:12.000
<v Speaker 3>a bumper, aheadlight lower control on ninety seven thousand R

0:18:12.280 --> 0:18:14.119
<v Speaker 3>which had to come out of my pocket and in

0:18:14.240 --> 0:18:16.399
<v Speaker 3>the ten thousand towing costs to put it on a

0:18:16.400 --> 0:18:19.840
<v Speaker 3>flatbit to get it there. And this was a distance

0:18:20.040 --> 0:18:23.920
<v Speaker 3>from my house of less than five hundred meters, so

0:18:24.040 --> 0:18:27.600
<v Speaker 3>the costs can really really escalate.

0:18:29.080 --> 0:18:31.960
<v Speaker 1>Sure, thanks for that, Wesley. Ten thousand rand put it

0:18:32.040 --> 0:18:36.879
<v Speaker 1>on a flatbed. Yoh okay, thanks very much. Indeed to

0:18:37.200 --> 0:18:40.000
<v Speaker 1>our guest Erica Liedenberg from Just Money, this has been

0:18:40.080 --> 0:18:44.240
<v Speaker 1>hugely informative the difference between a motor plan, a maintenance

0:18:44.280 --> 0:18:47.879
<v Speaker 1>plan and a motor warranty. Knowing what the difference is

0:18:47.920 --> 0:18:51.720
<v Speaker 1>and reading the fine print could literally save you tens

0:18:51.760 --> 0:18:53.440
<v Speaker 1>of thousands of Rand