Motorists must know what a warranty, service plan, and maintenance plan means. According to the competition guidelines, that came into force on 1 July 2021, consumers can service their vehicles at independent service providers (ISP) of their choice without compromising their current warranties. Let us find out more about warranties and the two plans.1,2
Guidelines are not backed by the law
Important to note that these guidelines are not legally covered.1
What is a warranty?
A car manufacturer provides a warranty to give you the assurance that they will repair or replace any parts that may fail during a warranty period. This doesn’t apply in the case that there is a motor vehicle accident.1
What is the warranty for new cars?
A ‘comprehensive warranty’ generally covers all new cars, and also includes roadside assistance and a corrosion warranty. Each manufacturer has its version of the warranty duration and its availability.1
Guidelines have changed warranties
With the guidelines in place, the manufacturer cannot void your warranty if you have taken your car for a service at an ISP that fully complies with the manufacturer’s specifications.1
What about warranty-related repairs?
The warranty does not cover motorists who want an ISP to attend to warranty-related repairs because only the manufacturer can replace such parts. Parts covered by a warranty include, for instance, the fuel system, fuel pump and engine (plus turbochargers).1
What does a service plan entail?
A service plan covers labour and service parts based on a car manufacturer’s service schedule (OEM or original equipment manufacturer). The manufacturer will replace parts such as air filters, spark plugs, oils, and filters during such a service. A service plan does not apply if you misuse your car or have an accident. 1 It also does not cover wear and tear, nor if you have a mechanical breakdown.2
Buying a service plan separately
According to the guidelines, you can now buy a service plan separate from the car’s purchase price. If you buy the manufacturer’s service plan, you must take your car for services at a dealer.1
Maintenance plan assists the service plan
A maintenance plan will cover a part not included by a service plan, and usually covers labour. Because the extent of cover depends on each manufacturer, the onus is on the customer to check.1
How long do service and maintenance plans last?
When these plans are included with your new car, they are limited to a specific distance travelled or for a specific duration.1 You can lengthen the lifespan of these plans and warranties by purchasing extensions. This is helpful, seeing people keep their cars for longer owing to the tough economic climate.2
Can you get cover for used vehicles?
You should have cover if a car is older than 5 years. Fortunately, you can purchase warranties and monthly plans for used vehicles. This makes it possible to drive your car without trying to find thousands of Rands to pay for repairs.2
Disclaimer
If you purchase a new car with bank finance, you’ll have to purchase comprehensive car insurance by law. If you would like a quote or want to purchase affordable car insurance for your car, contact us at Prime South Africa. We provide affordable, comprehensive car insurance with fixed premiums* and reducing excess*. Discover more about the unique benefits of Prime’s products’ and our world-class service. Our comprehensive car insurance and customised car insurance plans provide cover up to 15 years of age, but our third-party PLUS car insurance covers vehicles irrespective of age. Ts and Cs apply.
First get professional advice from a certified consultant concerning all our financial services products, so that you’ll get the right product for your situation.
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