South Africa’s Used Car Boom: What You Really Need to Know About Warranties (and a Few Other Things)

Used cars are having a moment, and not just because your neighbour’s 2012 Corolla is starting to look like a smart buy. With new car prices rising and budgets under pressure, many South Africans are choosing second-hand wheels instead.

You can see the shift in the numbers. According to the latest TransUnion Vehicle Pricing Index, in the last quarter of 2024, applications for used car loans were 1.5 times that of new cars. But there’s a catch: many of these pre-loved rides are cruising out of the safety net of a manufacturer warranty.

So what happens when that warranty expires? Let’s look under the hood.

What does a manufacturer warranty actually cover?

You can think of a manufacturer’s warranty as your car’s safety net – there to catch surprise costs for a while, but when it disappears, the high-wire act gets real. Typically, manufacturer warranties in South Africa cover mechanical and electrical failures, lasting around 3 to 5 years or up to 100,000 km, whichever comes first. 

It’s not about dents or scratches (we’ll get to those). It’s about things like: 

• Engine faults
• Gearbox failures
• Electrical malfunctions
• Major component breakdowns

Once this coverage ends, you’re on your own unless you’ve sorted out an extended warranty. 

The case for extended warranties (especially now)

Let’s say you buy a well-loved 2019 hatchback. It’s got 80,000 km on the clock, still looks snazzy, and the previous owner definitely had good taste in air fresheners. But if the original 5-year warranty is nearly up or already expired, you're driving without a financial safety net.

That means that if something serious goes wrong, you could be staring down a R30,000 gearbox repair or worse. Fortunately, extended warranties exist but please be aware that cover limits may apply . These are plans offered by insurers and third-party providers that kick in when your manufacturer warranty runs out.

• Mechanical and electrical failure cover (parts + labour)
• Roadside assistance
• Cost certainty (no unexpected mechanic bills)

Some even let you tailor coverage based on how old your car is, how much you drive, or what brand it is (because, let’s be honest, some brands just need that extra cushion.

But wait, what about scratch and dent?

Not all surprises involve smoke and warning lights. Sometimes, it’s the little things — like a shopping trolley ambush at the mall or that time you misjudged the pillar in a parking lot (shame, we’ve all been there).

That’s where scratch and dent cover comes in. It’s like cosmetic insurance for your car, covering:

• Minor dents
• Paint scuffs
• Light bumper damage
• Chips from road debris

 The best part is that you can claim a scratch and dent repair and it won’t affect your main car insurance premiums, since you’re not claiming through your comprehensive car insurance. Plus, it helps keep your resale value strong, which is gold in this thriving used car market. 

Add a vehicle tracker to the mix and you’re golden

Let’s not kid ourselves: car theft is still a thing in South Africa. In fact, thanks to SAPS crime stats, we know that an average of 66 cars are stolen in Mzanzi every day!

Used cars are often easier targets, especially if they’re older models without modern anti-theft tech. By adding a tracker to your vehicle, you can:

• Help recover your vehicle quickly if stolen
• Reduce your insurance premium with certain providers
• Enjoy peace of mind when parking overnight or in high-risk areas

Some systems also offer real-time alerts, trip monitoring, and geofencing (so your car can’t sneak off to Pretoria without your permission).

TL;DR: Used car? Don’t skip the protection.

Your used car might have history, but that doesn’t mean it should come with financial baggage. Before you start second-hand shopping, remember that a few smart extras can save you major headaches later.

• Extended warranty: Covers you for the big stuff once the factory coverage ends
• Scratch and dent cover: Keeps your car looking fresh without affecting your main insurance
• Vehicle tracker: Adds a layer of security and might even drop your premiums

Hop onto Hippo to compare options from top car insurance companies in South Africa in just a few clicks. Your future self (and your wallet) will thank you!