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Service Plan vs Maintenance Plan: What Is The Difference?

vuyi on March 28, 2023

The difference between a service and maintenance plan can be stressful and easily misunderstood but in this article we clarify the differences and take the confusion out of the two.

What Is a Car Maintenance Plan?

A car maintenance plan is more comprehensive than a service plan. It covers both the labour and expenses of parts while also providing cover for wear and tear replacement items such as fuses, wiper blades, and brake pads. A vehicle maintenance plan also covers mechanical components such as the gearbox, engine, and exhaust system. Windscreens, alignment, and tyres are not covered in maintenance plans.

What Are The Benefits Of A Maintenance Plan?

Fixed and affordable monthly premiums for regularly scheduled vehicle maintenance.
Specified item wear and tear cover.
Qualified technicians and professional service.
Remain unaffected by the ripple effect of inflation on labour and parts cost increases.

A maintenance plan differs from a service plan in that it provides cover for the more important and costly replacement parts of the vehicle. A service plan, on the other hand, is somewhat different.

What Is A Vehicle Service Plan?

A service plan covers the cost of regular services on your car as specified by the vehicle manufacturer. In essence, a service plan pays for the servicing of your car – either on an annual basis or according to the vehicle manufacturer’s mileage requirements. Service plan lengths are generally stipulated by the manufacturer and the cost of the plan is affected by the make and model of the vehicle, with luxury and sports vehicle owners paying more for service plans. Replaceable items on your car that are predetermined by the manufacturer to keep your car running perfectly such as oil, air filters, and spark plugs form part of the service plan. Other items included in the service plan are cam belts, brake fluid, and coolant. Labour is also covered in a service plan.

While many perceive a service plan to be comprehensive, the reality is that a service plan is not enough to safeguard you against the financial strain that comes with owning and maintaining a vehicle. For example, here is a list of general service plan exclusions.

What Does A Service Plan Not Cover?

Accessories, electrical wiring items, wheels, wheel alignment, tyres, and all glass such as windshields and car windows.
Paint and bodywork brought on by standard wear and tear.
Maintenance and repair work caused by abuse and misuse of the vehicle, damage caused by an accident, and damage caused by negligence.

These are only a few exclusions and service plans should be read through carefully for a thorough understanding of how the plan works, what it covers, and what the general exclusions are.

What Are The Benefits Of A Service Plan?

A service plan assists vehicle owners to ensure that the future services of their car are taken care of in advance and helps avoid budget interruptions that may take months to recover from. Service plans also help drivers avoid car breakdowns and additional towing fees.
Every driver will attest to the driving pleasure of an efficiently running car. A fully serviced vehicle is a pleasure to drive and costs less to maintain in the long run.
A well-looked-after vehicle that is regularly serviced can be sold at a higher value because the vehicle is in good condition and has an up-to-date service history.
Parts on your car will be replaced with components specific to the make, model, and chassis number of the car.
The final and most important benefit is that a service plan will not only provide you with peace of mind but with great driving experiences and many unforgettable road trip memories.

What Are The Disadvantages Of A Service Plan?

A service plan provides cover for serviceable parts only.
A service plan could limit your services to approved centres only.
A service plan does not provide cover for the wear and tear of parts.

Service plans are a good addition to comprehensive car insurance as it allows for a broader range of financial cover for your vehicle. With the basics of service and maintenance plans for vehicles covered, here are a few more terms as well as their explanations that will serve you, the driver well and possibly save you some money by providing you with the necessary information to make the best motor plan decision.

New or used? Guide to buying your next car

vuyi on February 13, 2023

Buying a car, new or used, is a big commitment, but with proper planning it does not have to be a daunting one.

There is a vast selection of cars available from a large variety of sellers, making it difficult to find the one that’s right for you. The first thing to do is to ask yourself how much you are prepared to spend on a car and to be realistic about what you can afford.

New or used, that is the question

Which of these is the correct choice? There is no right or wrong answer, but understanding the pros and cons of each is vital for making the best decision for you.

Benefits of buying a new car

The upside of buying a new car is the certainty of knowing exactly what you are buying. No one else has ever owned it, and there’s a guarantee that it has no hidden secrets from previous owners.

You also get the advantage of a full manufacturer’s warranty and in most cases, a service or maintenance plan. These plans can vary from brand to brand in terms of length of validity periods and what’s covered, so do your research and compare what’s on offer from different manufacturers.

Benefits of buying a used car

Choosing a pre-owned car or an earlier year’s model might be more prudent for your purposes. Some used cars, including dealer demo models, are often in almost new condition and still benefit from lengthy aftersales warranties and service plans, with reasonably discounted sticker prices depending on mileage and age.

Most car brands also offer approved pre-owned programmes, meaning these cars come with some added benefits such as extended aftersales plans and guarantees. They also undergo thorough checks by certified workshop technicians in order to get the stamp of approval for ‘approved’ status.

While depreciation is an unavoidable reality of owning a car, used vehicles almost always suffer less depreciation from purchase price than a new one. In other words, the original owner, who bought the car new has already incurred a significant amount of depreciation simply by taking ownership. When buying a used model, you’re starting off from a lower initial outlay and the effects of depreciation are felt less in your wallet.

There are some excellent deals to be found in older model used vehicles, but it can also be a riskier purchase as vehicles’ histories get cloudier as they age. Try to identify cars with full service histories, and even better are those with full histories at official franchise dealers. Also, try to take a trusted mechanic with you to view an older car to make sure there are no major issues before taking delivery.

It’s also worth considering buying extended warranties, either from the manufacturer itself where applicable or from a third party.

Start with a budget

The most important part of the car-buying journey is compiling a list of all current expenses and income. It is important to shop around and compare car prices to find a sensible and affordable car that fits within your budget. Don’t forget to budget for fuel, insurance, tyres, service costs and more – and remember that these costs can change over time.

It is also advisable to build some leeway into your budget to accommodate for rising fuel prices, interest rate increases and unexpected costs associated with driving.

Choose a reputable dealer

If a deal seems too good to be true, it normally is. It might be tempting to buy a newer, fancier car advertised at a low price by a small independent dealer or private seller, but you must let common sense prevail. There is probably a reason why that car is priced the way it is, and you might run into issues with it down the road.

It’s safer to do business with reputable dealers who will go to great lengths to protect their reputation through quality products and customer service.

What Questions Should You Be Asking When Buying A Pre-Owned Vehicle?

vuyi on June 1, 2021

Buying a new vehicle is a huge financial commitment so shopping around for the best deal is imperative. Very often pre-owned cars, even those with low mileage, can be found for quite a few rands less than their new car equivalents, but there are a few questions you need to ask before signing on the dotted line.

Who am I buying from?

Who you buy a pre-owned vehicle from is by far the most important consideration for any car buyer? While many websites advertise cars that are being sold by private sellers, buying a pre-owned vehicle in this manner has its risks. Vehicles sold privately or through stand-alone dealerships are largely voetstoots.

TIP: Be sure to do research about sellers by having a look at their website, social pages, and Google ratings.

What should I buy?

Filters on websites help shoppers narrow down the search according to the parameters that are important to each individual buyer such as budget, model, specification, model year, or mileage, and create a shortlist of vehicles worth viewing in person.

TIP: The age and mileage of pre-owned vehicles will affect the price but anomalies to watch out for include cars with high mileage in comparison to their age. A good average is 20,000 – 25,000km per year.

Consumers often browse for choices online but affirm their decision from the touch and feel moment
– Corné Venter, CEO of Motus Retail & Rental SA

Is the vehicle as advertised?

Visiting the dealerships on your shortlist allows you to physically inspect the facility and the vehicle, and to ask more specific questions.

“Consumers often browse for choices online but affirm their decision from the touch and feel moment. Fortunately, when shopping on our platform, whatever consumers select is exactly what they will get upon delivery,” said Corné Venter, CEO of Motus Retail & Rental SA

Is the warranty and service plan still valid?

Warranty and service plans are time and mileage-based and expire when one of those parameters is reached.

TIP: If you are considering a vehicle without a service plan, you need to be more aware of the technical condition of the vehicle or have it checked by an independent expert.

Does the car have a full-service history?

A full-service history means that the car was well maintained and will have a direct bearing on the warranty of the vehicle.

TIP: A service history should be a serious consideration for any buyer as it can eliminate surprise costs in the future.

Has the car been in any accidents?

An accident history that includes a minor bumper bashing that has been correctly repaired is nothing to worry about, but buyers should lookout for any signs of serious damage during the car’s life.

TIP: An easy way to spot a repaired vehicle is via uneven body panel gaps and alignment.

Can I take it for a test drive?

A buyer should insist on taking the car for a test drive. This will allow you to get a feel for the vehicle, check that everything works as it should, and allow you to identify any apparent issues.

TIP: Turn off the radio to be able to hear any strange noises and take note if the vehicle veers to either side.

Have any major components been replaced?

If major components like the windscreen, tyres, or brakes have been recently replaced, this could save you extra money in the medium term. Conversely, if any of these items will need replacing soon, that could mean extra costs on the horizon.

TIP: Take note of the tyre tread as replacing tyres can be a costly exercise.

Source: Motus

Demystifying vehicle finance lingo: Part 2

vuyi on March 11, 2021

It’s all very well to find a car that you both like and can afford, but you also need to understand all the financial jargon that comes with making the purchase.

There is no shame in admitting you don’t know about the warranty, total cost of ownership or service plan. While all these terms can be intimidating the first-time round, asking questions will ensure you become vehicle finance savvy.

Here’s the second installment of our 2-part guide to understanding vehicle finance jargon which will help you make the right choices:

“There isn’t a one-size-fits-all solution to structuring a car finance deal. By being totally honest with yourself and knowing how much you can realistically afford on the vehicle repayment, you are on the best-informed path to owning a car. As a responsible lender, WesBank will only provide credit for an amount that you can afford to pay back.”
– Kutlwano Mogatusi, WesBank Motor’s Communication Specialist

Total cost of ownership: As mentioned, there’s more to owning a car than paying the monthly instalment. You need to budget for the running costs too – fuel, insurance, licence, servicing, maintenance, tyres and brakes, tolls, maybe the odd speeding fine! It’s important to buy a car you can afford even if it’s not yet the car of your dreams.
Insurance: There are plenty of tempting insurance offers to choose from, however, WesBank recommends comprehensive insurance cover for a first-time car owner. This will cover you in the unfortunate event of accident damage, theft or vehicle write-off, plus you are covered for third party damage, which is damage to another vehicle in the case of an accident. The high risk of driving an uninsured vehicle is just not worth it.
Warranty: A new car usually comes with a manufacturer’s warranty that would cover a faulty fuel gauge for example, but not general wear and tear on the brakes. It lasts for a certain time period but the finance provider, such as WesBank, can extend the warranty period, and can also offer you a warranty when buying a used car.
Service plan: Usually covering the cost of a standard service, a service plan pays for your car’s regular services at set intervals (period of time or kms driven) as stipulated by the manufacturer. Be sure to understand what repairs or parts are excluded from the plan to avoid a nasty bill following a service.
Maintenance plan: Maintenance plans differ in what they offer but most include the cost of servicing plus general vehicle wear and tear repairs to keep your car running efficiently. Again, make sure you are 100% clear on exactly what the plan covers and what is excluded.

“Now that you understand the jargon and consider yourself to be vehicle finance savvy, all that’s left is to check the vehicle finance agreement, including the small print, and sign on the dotted line – but, only once you’re satisfied with all the terms and conditions. Then, you are ready to safely take to the open road in your very own car,” says Mogatusi.