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When buying a new car, terms like "warranty" and "service plan" can be confusing. Understanding what they mean and how they work can help you make a better decision and avoid unexpected costs later. Let’s unpack the difference between these two common offerings.
What is a Vehicle Warranty?
A vehicle warranty is a guarantee from the manufacturer that your car will be free from defects for a certain period. If something goes wrong due to a manufacturing fault, the repairs will be covered. In South Africa, most new cars come with a manufacturer’s warranty that typically lasts between three to seven years or up to a set mileage, such as 100,000 kilometres. Warranties usually cover major components like the engine, gearbox and electronics. However, they do not include wear-and-tear items like tyres, brake pads or wiper blades. Keeping up with scheduled services is essential, as missing them can void your warranty.
What is a Service Plan?
A service plan covers the cost of routine servicing as specified in your owner’s manual. This includes labour and parts like oil, air filters, spark plugs and other items needed for scheduled services. Service plans usually run for a specific time frame, such as three years or 60,000 kilometres. Unlike warranties, service plans do not cover mechanical repairs or faults. They are designed to keep your car running smoothly and to help you manage maintenance costs.
Do Plans Differ Between Brands?
Yes, service and warranty coverage can vary between manufacturers and even between models. Some may include extended maintenance plans or offer the option to top up your coverage. Always ask the dealership for the details before signing any contract. Knowing what’s included helps you plan your car ownership journey with fewer surprises.