You’ve probably heard of a Car Service Plan before, but do you know exactly what a Service Plan is and how it can benefit you? Without knowing what it is, it can sound a bit like a luxury, but nothing could be further from the truth. If you want to spend a small amount of money every month (we’re talking approximately R150) and be covered for your car servicing needs in the future, we suggest you read on.
What is a Car Service Plan?
First of all, let’s talk about what exactly, a Car Service Plan is. Basically, it’s a plan that will pay for the regular services of your car. The exact parts of the service that it covers will be stipulated by your car manufacturer, as most service providers of these plans will stick to what is recommended by the manufacturer. Parts, fluids and labour are the general elements that are covered. The plan can run over a certain time frame, or according to a certain amount of kilometres driven. Whenever your car is due for a service, the elements stipulated will be covered, no hassles.
Of course, there are limits: if you bring your car into the service centre in pieces, your plan won’t cover it. Major mechanical damage and electrical faults won’t be covered, but this is standard with all service plans. If you took your car for a service and they fixed all mechanical and electrical damage as part of the service, mechanics would go out of business, and so would service centres!
What are the benefits of a Car Service Plan?
As you’ve probably guessed, there are quite a few benefits to taking out a Service Plan.
First of all, the biggest benefit: you need never worry about inflation increasing the costs of your services. Without a service plan, every time you take your car in, the price of a regular service will have increased to compensate for inflation. With a Car Service Plan, this doesn’t happen. You pay a fixed instalment every month throughout your subscription to the plan. This also saves you money over time. So, a little instalment every month is all it takes to ensure that your car is serviced, and you get to avoid pesky inflation price increases. You get to budget your car-care with professionals.
Secondly, you know that you’ll get a return on investment. Take Car Insurance for example.
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Car owners take out insurance for the possibility of an accident or car damage. No-one knows whether they will have to claim from insurance at some stage, but the risk of not having this type of cover is too great to take, so people do not mind parting with sums of money they may never see a return on. With a Car Service Plan, you know that your car will need servicing regularly. Whatever premium you pay, you know you’re going to get a return on the monthly instalments because you will be claiming regularly for services.
Third but not least, your car will run all the better for regular servicing. We have all done it – procrastinated over a service and put it off until there is money available. As your car sits un-serviced but still in use, the wear and tear that has formed in the mechanics starts to degrade your car even further, and more quickly. Eventually, when you have a service, the cost of repairing the damage done by the wear and tear build-up can be expensive. If you get your car serviced when it is supposed to be, the car won’t suffer from existing damage decreasing its performance. The car will also last longer and be far easier to sell, as it will have a complete service history created for you by your service provider.