Are you aware of the differences between an extended warranty, service plan and maintenance plan? Although these plans may seem similar, they are in fact very different.
For many car owners, understanding these options can be confusing and overwhelming. But, in order for you to continue enjoying your car the way it was intended, you need to carefully weigh the possibilities and options that you have. Â Although the industry jargon between these three plans can be complicated, we have outlined exactly how an extended warranty, service plan and maintenance plan differ.
It’s important to have knowledge not only of your vehicle, but also the best way to cost-effectively keep it in tip-top condition. So, here’s the lowdown on each to help you better understand your options.
Extended Warranty
An extended motor warranty is specifically designed to cover mechanical breakdowns up to a certain amount. So, it is essentially, insurance for your car.
Some common items that may be covered by a warranty include:
- Engine
- Gearbox
- Electric components
An extended warranty differs from a manufacturer’s warranty in that a manufacturer’s warranty is a benefit offered by the manufacturer or dealer with the purchase of your new vehicle. An extended motor warranty can be purchased either before or after your manufacturer’s warranty expires.
Benefits of an extended warranty
- Convenience
- Peace of mind
- Greater car value
- Protection against the cost of parts and labour following a mechanical or electrical failure
Service Plans
A service plan is basic cover that covers the costs of your car’s regular services, as specified by the vehicle manufacturer. It pays for the servicing of your car for a specified time period.
In terms of length, this is generally specified by the manufacturer. It could either be on an annual basis or according to the vehicle manufacturer’s mileage requirements; this will differ from manufacturer to manufacturer.
It’s important to note that a service plan will cover only planned servicing and labour; if any additional work needs to be done over and above planned servicing, it will fall under the responsibility of the car owner.
Benefits of a service plan
- Qualified technicians
- RMI approved workshops
- Affordable monthly premiums
- Maximise car resale value through regular servicing
Maintenance Plans
A maintenance plan is a supercharged service plan; it includes all the benefits of a service plan as well as additional protection for the repair and replacement of various wear and tear parts. The best part of a maintenance plan is the peace of mind that comes with it.
Benefits of a maintenance plan
- Fixed costs
- More comprehensive than a service plan
- Eases financial impact of having regular maintenance
With having all this information at your disposal, it can be very easy to feel lost and overwhelmed. But the key to understanding all these plans is to do as much research as you can and speak to an industry professional. This will help you ensure you choose the best-suited plan for your vehicle.
