South African car owners can face repair bills of over R50,000

Unexpected car repairs can cost thousands of rands and be financially devastating, especially for vehicle owners who lack the right coverage.

This is feedback from Sarah Nicholson, Platform and Customer Experience Manager at JustMoney.co.za, a platform that helps South Africans make informed financial decisions.

Since car repairs are usually unplanned and costly, potentially exceeding R50,000, they can be a significant financial blow to households.

Labour rates at franchised dealerships in South Africa can range from R800 to R1,500 per hour, and parts are often imported, making them even more expensive.

On a mid-range car, replacing brake pads can cost R2,000 to R3,500, while a clutch replacement on a hatchback may reach R10,000. Fixing a turbocharger or gearbox on a premium vehicle could cost R50,000 or more.

According to Bidvest Insure, replacing a tyre can range from R800 for an economy tyre to R4,000 for a mid-range tyre. High-end tyres for luxury vehicles or SUVs can cost anywhere from R2,500 to over R10,000 per tyre.

“Most South Africans are already under financial pressure, so unexpected vehicle repair costs can wreak havoc on a household budget,” Nicholson said.

“That’s why it’s essential to understand what protection you’re getting when buying a vehicle and to be clear on the difference between a motor plan and a motor warranty.”

Nicholson explained that although these terms are often used interchangeably, they provide different types of coverage.

A motor plan helps you manage the cost of keeping your car in good running condition. It may include a service plan, a maintenance plan, or both.

Service plans cover the cost of routine servicing according to the manufacturer’s schedule. This includes labour and parts such as oil, brake fluid, and spark plugs. Some items are replaced automatically, while others are inspected and only replaced if necessary.

Maintenance plans include everything in a service plan, as well as replacing parts that wear out over time, like brake pads, the clutch, and the battery. It also covers mechanical and electrical failure.

Motor warranties

On the other hand, a motor warranty – also called a factory or manufacturer warranty – is included automatically with a new car.

It usually lasts for a fixed period, such as three to five years, or up to a certain mileage, typically 100,000km, 120,000km, or 200,000km in some instances.

It covers unexpected mechanical or electrical failures in key components like the engine, gearbox, and onboard electronics.

The warranty pays for repairs or replacement if a part fails suddenly due to a manufacturing fault. However, if a part wears out over time, like a clutch or battery, it won’t be covered by a warranty, only by a maintenance plan.

“Many new cars come with both a motor plan and a warranty bundled together,” Nicholson explained.

“When something goes wrong, it’s often the warranty that covers the cost, but drivers mistakenly credit the motor plan. This causes confusion about what each plan really includes.”

Normal car insurance is different from both a motor plan and a warranty, Nicholson said. This covers accidental damage, theft, fire, and third-party claims.

While a motor plan pays for scheduled services and a warranty covers mechanical or electrical failures, insurance covers you if your vehicle is involved in an accident or is stolen.

Insurance is a legal requirement if you have a financed vehicle, and choosing the right level of coverage is crucial for protecting your budget.

Options when cover expires

Nicholson explained that once your motor plan and warranty expire, you have several options to protect yourself against high service and repair costs.

One option is to buy an extended warranty, which covers mechanical and electrical failures beyond the original warranty period.

This can be purchased from the vehicle manufacturer, a dealership, or a third-party provider, but it’s important to review what is included, as some plans may exclude costly components or wear-and-tear items.

Another option is to purchase a service or maintenance plan, which helps you budget for routine servicing and replacing items like brake pads, filters, and wiper blades.

These plans are available for specific timeframes or mileage limits and differ in terms of coverage.

Alternatively, you can pay for services and repairs out of pocket as they occur. This offers flexibility but exposes you to potentially large, unexpected expenses.

Self-insuring is another route, which involves setting aside money each month in a dedicated savings account for future car costs. This approach requires discipline but can be cost-effective if plans are underutilised.

Lastly, if your vehicle is likely to incur expensive repairs soon, trading it in or selling it while it still holds good resale value could be a financially sound decision.

Choosing the right option after your motor plan or warranty expires depends on your car’s age, your driving habits, and your financial situation, Nicholson said.

If your vehicle is still in good condition but you want peace of mind, an extended warranty may be worth considering. The cost of extending a motor or maintenance plan varies depending on the vehicle brand.

For example, an extended maintenance plan could cost in excess of R60,000 for two years/40,000km cover on high-end vehicles. However, the average cost typically ranges between R15,000 and R30,000.

If you clock up high mileage or drive in tough conditions and want to avoid surprise service costs, a service or maintenance plan can help you budget more predictably.

On the other hand, if you have a solid emergency fund and the discipline to save regularly, self-insuring could be the most flexible and cost-effective route.

For some, simply paying out of pocket as needed or trading in the car before major repairs arise makes the most financial sense.

“Read the fine print when considering your options, and make sure you understand what’s covered and excluded,” Nicholson advised. “The option you choose must suit both your car and your budget.”