Service plans, maintenance plans and warranties, what’s the difference?
Do you understand the difference between a service plan, a maintenance plan and a warranty? It can all get a bit overwhelming if you haven’t really had to use one before.
The AA reported that these days, most new cars are sold with a maintenance or service plan, either as standard or optional extras and that it’s important not to be fooled into thinking a standard maintenance or service plan is free.
Also read: Out of warranty doesn’t have to mean out of pocket!
But first, let’s take a look at how they define the difference between a warranty, a service plan and a maintenance plan:
What is a warranty?
All new vehicles carry some kind of warranty, but they can differ from one brand to another. They are however, all restricted in terms of time and mileage. Your new car’s warranty is basically a promise by its manufacturer that manufacturing or factory defects will be repaired, or replaced, within a specific period of time. Common items covered by the warranty include the engine, gearbox, electric components, fuel systems, audio systems and sensors.
Items that won’t be covered include general wear-and-tear items such as tyres and brake pads, and any damage resulting from user abuse will also not be covered. Tyres, for instance, will come with their own manufacturer warranty or guarantee.
Interestingly, some vehicle manufacturers even offer roadside assistance that runs concurrently with the warranty. This could cover things such as tyre changes and locksmith services.
It goes without saying that damage because of driver abuse or incorrect use could void the warranty, as could aftermarket alterations made to the vehicle. Be sure to familiarise yourself with exactly what is covered under the warranty and for how long.
What is a service plan?
As the name suggests, a service plan covers all the costs of having your car serviced as per the stipulations of the manufacturer. Generally, this will include the labour and replacement cost of air, pollen, fuel and oil filters, cam belts, brake fluid, oil and gearbox oil, spark plugs and coolant.
All such services will have to be carried out by an authorised service centre or dealer network to ensure the terms of the service plan contract are met.
What is a maintenance plan?
A maintenance plan is basically a service plan on steroids. It has more benefits than a service plan and will include wear-and-tear items on your car such as the gearbox, clutch, suspension and brake pads and discs, wiper blades, shock absorbers, globes and fuses, wheel bearings, replacement gas for the air-conditioning system etc.
In simply terms, the maintenance contract covers any item on your car that has a wear cycle and will need to be replaced at some point during the car’s lifespan – the items not covered by a service plan.
What’s the catch?
As long as you keep your end of the deal, there is no catch. As mentioned before, there will be a time and distance limit on both maintenance and service contracts. And once the contract runs out, you will be liable for all maintenance and servicing costs on that vehicle.
Remember that component failures resulting from driver abuse won’t be covered, and could nullify the remainder or some aspects of the contract. Similarly, all maintenance and servicing has to be done by the official dealer with original parts, otherwise the balance of the warranty or contract will be cancelled by the manufacturer or importer.
Not all service or maintenance plans are created equal, so make sure that you read and understand the plan you are signing up for. Familiarise yourself with what is covered and what isn’t. And remember that there’s no such thing as a stupid question; if you’re not sure, ask, this could save you a lot of frustration and expenses later on.