The ultimate guide to understanding car service plans: Everything you need to know

Car service plans are essentially prepaid plans that cover the cost of scheduled servicing for your vehicle over a specified period. By paying a fixed amount upfront or in monthly instalments, you can spread the cost of servicing your car over time, thereby avoiding unexpected expenses and ensuring regular maintenance to keep your car running smoothly.

At MotorHappy, we offer two service plan products for comprehensive vehicle care:

• Service Plan: A service plan can be included when you’re negotiating vehicle financing. We also offer the option to purchase the plan in full or to pay for the plan in fixed monthly instalments. The Service Plan includes the replacement of parts, fluids or labour. (Click here to find out more.) 

• Service Plan Booster: The Service Plan Booster includes everything included in the Service Plan, plus the replacement of front brake pads, rear brake pads, and wiper blades.

Car service plans typically cover routine maintenance tasks such as oil changes, filter replacements, brake inspections, tyre rotations, and other manufacturer-recommended services. 

A good service plan will offer a fixed rate for the duration of the plan. This means you can lock in today’s service rates and avoid potential price increases in the future. When inflation hits workshops and impacts the cost of parts, your monthly instalment will stay the same. This can result in significant cost savings over the lifetime of your plan. 

Read the terms and conditions carefully to understand your role and responsibilities too. If your Service Plan is paid in full upfront, your service plan is transferable, meaning it can be transferred to a new wonder if you decide to sell your car before the plan expires. This can increase the resale value of your car. (Transferring the service plan is not an option if you purchase a plan with monthly payments.)

Once you’ve purchased a Service Plan through MotorHappy, there is a waiting period before your plan becomes active. This waiting period varies depending on how you purchased the plan:

• If the Service Plan was added to your vehicle finance agreement: Your waiting period is 30 business days after MotorHappy has received payment for the plan.

• If the Service Plan was paid for in cash in advance: The plan will kick in 30 days after MotorHappy has received payment.

• If you pay monthly instalments: The Service Plan will start after MotorHappy has received four consecutive monthly payments.

Be sure to read the Terms and Conditions of your Service Plan, so you’re aware of your responsibilities as the holder of the plan. 

• Have your car serviced as per manufacturer requirements and within the stipulated time limits. You will find this information in your vehicle service manual.

• Follow the service procedure. Contact MotorHappy to confirm your policy status before booking your car into an approved OEM or RMI dealership of your choice. When booking your vehicle for a service, tell the service advisor that you have a Service Plan through MotorHappy. Allow the dealership to work on your car only after receiving authorisation from MotorHappy. Authorisation could take up to 48 hours.  

• Keep your car in a good, roadworthy condition and perform regular preventative maintenance on your car.   

• Drive responsibly. 

• Take all reasonable steps to protect your car from further loss or damage if mechanical or electrical failure occurs. 

• Adhere to the limitations set out in your owner’s manual in terms of weight and number of passengers. 

• Use your car for its intended purpose only. This means don’t take your city car on a 4x4 adventure, don’t turn your family car into a taxi or use it as an Uber (where you are paid to transport people), etc.  

Click here to get an online quote in minutes.

Our online quote system will guide you through some quick and easy steps. You’ll need your car make and model, registration year, current kilometres, last service date and average kilometres travelled per year.

It’s a good idea to source quotes from various providers to compare prices and coverage options. Be sure to review the terms and conditions of each to make sure you’re comparing apples with apples. 

When choosing a car service plan, consider your driving habits, budget constraints, and specific vehicle needs. Here are some practical tips to help you make an informed decision when choosing maintenance packages for cars:

• Consider how often you use your vehicle and the typical conditions of the roads you use most frequently. If you often take long journeys or you drive on harsh roads, you might want to consider additional coverage, like a Service Plan Booster.

• Determine how much you’re willing to spend on servicing your car. While it might be tempting to opt for the cheaper option, keep in mind that comprehensive coverage could offer better long-term value by preventing costly repairs down the line. 

• Carefully review the coverage details of each service plan. Pay attention to any exclusions, limitations or waiting periods that may apply. 

• Before committing to a service plan, research customer reviews and seek recommendations from friends, family, or online platforms. 

A car service plan offers comprehensive vehicle care and a cost-effective way to maintain your vehicle's health and prolong its lifespan. By understanding the key features of these plans, obtaining multiple quotes, and choosing the most suitable option based on your driving habits and budget, you can enjoy peace of mind knowing that your car is well taken care of. 

Click here to find out more about a Service Plan through MotorHappy.