Should you have a service plan?
What is a vehicle service plan?
A service plan is an option or a benefit you are offered by the car dealership, when buying a new car, and can be included in the payment package of the car you purchase. This enables you to have your car serviced for no or little cost, for five years or for every 60 000 kilometres, making provision for all service items in your plan with the exception of tyres and fuel. If you are buying a used vehicle it is also possible to extend service plans.
“The plan is a compulsory no-extra cost service and usually comes with the car package. Although in the odd instance when it is not being offered, the consumer is welcome to request it, but this will then come at an additional cost, specific to the type of car, the mileage and the price thereof. To buy a service plan these days you are looking at an extra amount of between R15 000 – R20 000, this is known as an extended service plan,” said former workshop foreman at Hyundai, Wayne Martin.
Consumers need to be made aware that this differs from a maintenance plan, as a maintenance plan includes not only scheduled services but a range of specified parts and labour costs, remarked Martin.
The importance of a vehicle service plan
-It is cheaper than paying for services out of pocket, asthe service plan is generally included in your package and so no extra cost will be afforded to you when you bring your car in for servicing of any of the items stipulated in the plan.
-By regularly servicing your car you are able to prevent most of the wear and tear your car may endure.
-Service plans area meant to give you peace of mind as the mechanics at the dealer are trained specifically to work on the brand of vehicle.
-The correct car parts are used in servicing your car as the dealership works with manufacturer recommended parts.
-The administrator is obliged to do the service according to the guidelines established by your manufacturer or dealer, thus ensuring a full decent service.
-You have the expert’s specific to your brand of vehicle at your disposal and are able to contact them for any enquiries or advice.
Tips when buying into a service plan
“It is vital when buying a car that you do your research into the package offered and specifically the deal they give you surrounding your service plan. That will determine whether or not it is a good buy, “Martin highlighted.
He further suggested that consumers need to familiarise themselves with their service plans and what is stipulated, so you can maximise your benefits and make full use of the package.
It is vital that every driver has a service plan and adheres to the stipulated guidelines and timeframe given, to prevent the development of mechanical issues leading to a breakdown, said Layton Beard, public relations manager for AA South Africa.
A service plan is ultimately a convenient way of budgeting and aids in ensuring that you spend less time worrying about the costs of maintaining your vehicle and more about the enjoying it.
Featured Which savings accounts offer the best interest rates?
In South Africa, where household savings remain a national priority, there is a dire need to instil a savings culture. While there are various savings vehicles you could investigate, opening a savings account is undoubtedly one of the simplest.
Interest-free days and interest amounts – what are the limits?
When you open a credit card account with your bank, you will receive certain benefits based, in part, on your credit profile. The number of interest free days and the interest rate are among the credit conditions that will apply.
How do insurance brokers work?
If you have an insurance product, you may have worked with an insurance broker. They generally step in and help you make sense of insurance products. But what else should you know about them?
How to apply for government funding for your start-up business
Starting your own business can be challenging, especially if you don’t have the capital to get it off the ground. Fortunately, there are many ways to fund a new business in South Africa. This week Justmoney found out more about these grants, how to apply for them, and what you can do to make your business stand out from the rest.
Breakfast for Two at Spice on Main
When: Mondays to Sundays
Where: Cape Town
Online Course in Event Planning and Management
Relax Spa Massage and Tea Ceremony
When: Mondays to Thursdays
Where: Cape Town