Mistakes That Can Cost You Your Service Plan

Mistakes that South Africans Overlook When It Comes to Their Car’s Service Plan 

South African motorists have a responsibility that goes beyond traditional traffic laws and AARTO requirements when they’re on the road. In fact, some may have an additional monthly obligation to another provider, whether that includes Car Insurance Cover, a Warranty Plan, Maintenance Plan, or an Extended Service Plan for cars.

David Chard, Managing Director of AA Warranties says, “When buying a vehicle, it’s important that customers know what they’re buying into. Knowing the add-on plans is as important as ensuring the actual vehicle meets all their needs.”  

A Service Plan for cars seems simple enough to understand, but some things may not be as clear cut to some folks. It can be incredibly easy to miss or forget when it comes to the fine print, but it’s this simple mistake that costs people their Service Plan.
  
In this article, we discuss how Extended Service Plans work, what you need to know when it comes to maintenance and repair, as well as how to avoid certain activities that could cost you your plan.  

If you don’t own a motor plan or are in the market for buying a pre-owned vehicle without a Service Plan, this is what you can expect. 

A car Service Plan financially covers regular services designed to maintain specific components at specific intervals. The duration of this plan depends on whether your car meets the number of years or mileage required, whichever comes first (i.e. every 10,000km or every 12 months). 

What’s Included in an extended service plan?

Primarily, you’ll need to check if you qualify for a Service Plan. Some providers may require a car owner to specify how much mileage they’ve clocked over time and how old the vehicle is (based on date of first registration). 

Secondly, a Service Plan for cars does not cover wear-and-tear items. This is typically covered by a Maintenance Plan. So, if you’re interested in comprehensive maintenance, that’s something you can add on to your vehicle. At some point in the future, you will need to replace a few car parts as part of the upkeep.

For now, you can expect a Service Plan for cars to cover the following components:

• Oil filters
• Cambelts (in some selected plans)
• Brake and clutch fluid
• Engine oil
• Coolant
• Transmission fluid 
• Spark plugs
• Air filter 
• Plug gasket
• Pollen filter element
• Differential fluid

Now, if you don’t know what these are or how they work, leave it to the professionals. Each manufacturer has specified what components need regular maintenance. 

If you’re in the market for a vehicle. you can find everything you need (including a vehicle’s service history) in the owner’s manual. 

Most car owners today, especially in South Africa, like to hang onto their vehicle for as long as possible. Decades ago, it was a popular choice to sell a vehicle with an active Service Plan or car warranty as this helped maximise the car’s resale value and gave sellers a better trade-in deal. 

Today, with inflation and unstable purchasing trends, this has influenced purchases across the market. It’s becoming harder to buy brand new. Essentially, some motorists may never experience that exciting 5-year/200,000km Warranty or Service Plan.  

That said, having a Service Plan or Maintenance Plan really comes down to you and your budget. Either you’re going to trade-in very soon and you want a better trade-in deal or you’re looking to extend your plan because you’re not in the market. 

There is a difference between the two plans, you can learn more here: A beginner’s guide to Extended Service Plans. 

You are responsible for everything listed in the contract, once signed. Some of these may seem obvious, but some people tend to think that because they’re paying for the contract, they can choose to skip out on some of the rules.

Here’s a few things that contracts expect of you as a customer when signing for an Extended Service Plan, especially through MotorHappy:

1. Service your car regularly
2. Avoid missing payments
3. Do not modify your vehicle
4. Do not misuse your vehicle
5. Only service your vehicle at a facility approved by the provider

By following these rules, you’ll get to enjoy the additional perks on top of the services offered.  If you skip out on a number of services or take your vehicle into a third-party workshop, be prepared to have a backup plan because not all providers are as lenient as you think. 

It doesn’t take much effort to keep a Service Plan running, but it also doesn’t take much to lose it. Remember, providers' rules vary, so if you’re counting on an older plan from a previous provider to match a brand new one, think twice.
 
For some, it’s not easy or cost-effective trying to find an affordable Service Plan around South Africa. So, if this is your first time, always read the fine print and double-check your rights and responsibilities as a customer.