“Sorry, sir, your car’s maintenance and service plans expired six months ago. Are you going to pay out of your pocket?”

It was the middle of the month and I had not budgeted for this extra cost because I assumed my vehicle, which came with maintenance and service cover when I bought it new five years ago, was still covered.

So, my search for a company that I could pay monthly for these services began.

The internet is littered with companies that offer cheap and sometimes “too-good-to-believe” deals and I found myself confused about which to pick, as they all offered different coverage, which can be unnecessary if your vehicle is in top shape, like mine.

The search for what suits your needs can even be more complicated if you cannot tell the difference between motor plans.

That’s why it’s essential to understand what protection you’re getting when buying a vehicle and to be clear on the difference between a motor plan and a motor warranty. Though these terms are often used interchangeably, they provide different types of cover.

Let’s start with a basic service plan, which motorists like because of its affordability. This plan covers the cost of routine servicing according to the manufacturer’s schedule, explained Sarah Nicholson, the operations and sales manager from JustMoney.co.za

The service plan covers labour and parts such as oil, brake fluid, and spark plugs

—  Sarah Nicholson, JustMoney.co.za, operations and sales manager

“The service plan covers labour and parts such as oil, brake fluid and spark plugs,” she said. “Some items are replaced automatically, while others are inspected and only replaced if necessary.”

The maintenance plan gives motorists more cover as it includes everything in a service plan, plus the replacement of parts that wear out over time, like brake pads, clutch, battery, mechanical and electrical failure, said Nicholson.

Then there’s a motor warranty, which is sometimes referred to as a factory or manufacturer’s warranty.

“This plan is included with a new car. It usually lasts for a fixed period, such as three to five years, or up to a certain mileage, such as 100,000km, 120,000km or 200,000km.

“It covers unexpected mechanical or electrical failures in key components such as the engine, gearbox and on-board electronics. If a part fails suddenly due to a manufacturing fault, the warranty pays for repairs or replacement,” said Nicholson.

However, she said, if a part like a clutch or battery wears out over time, it won’t be covered by a warranty, only by a maintenance plan.

“Many new cars come with both a motor plan and a warranty bundled together,” explained Nicholson.

Normal car insurance is different from both a motor plan and a warranty. This covers you for accidental damage, theft, fire, and third-party claims.

A motor plan pays for scheduled services and a warranty covers mechanical or electrical failures, while insurance covers you if your vehicle is involved in an accident or stolen.

Insurance is a legal requirement if you have a financed vehicle and choosing the right level of cover is crucial for protecting your budget, she said.

Five options you have when your cover expires:

• Buy an extended warranty: This covers mechanical and electrical failures beyond the original warranty period. You can buy it from the vehicle manufacturer, dealership or a third-party provider. Always check what’s included, as some plans exclude high-cost items or wear-and-tear.
• Purchase a service or maintenance plan: These plans help you budget for routine servicing or wear-and-tear items such as brake pads, filters and wiper blades. They can be bought for specific time frames or mileage limits and vary in what they cover.
• Pay out of pocket: You can pay for all services and repairs as they arise. This gives flexibility but leaves you exposed to sudden, potentially large expenses.
• Self-insure: Set aside money each month in a dedicated savings account to cover future car costs. This requires discipline.
• Trade in or sell your car: If your car is likely to start incurring high repair costs, you could choose to sell or trade it in while it still has decent resale value.

Choosing the right option after your motor plan or warranty expires depends on your car’s age, your driving habits and your financial situation.

“But if your vehicle is still in good condition and you want peace of mind, an extended warranty may be worth considering,” said Nicholson.

How to protect yourself when your car is in for a service:

Know your car’s service schedule: Check your vehicle manual or do a quick online search to avoid being upsold on unnecessary work.

Use an accredited workshop: Look for workshops registered with the Retail Motor Industry Organisation and similar industry bodies.

Get a written quote: Ask for a detailed estimate before work begins, and ensure all parts and labour are clearly listed.

Ask for your old parts back: This helps confirm that the parts were replaced.

Request an itemised invoice: When collecting your car, check that the agreed-upon work was completed, and test the car if necessary. Insist on a final invoice that details exactly what was done and what each item cost.

Trust your gut: If something doesn’t feel right, question it or get a second opinion.

Know your rights: You are entitled to fair treatment and transparent pricing under the Consumer Protection Act. If you cannot reach an acceptable outcome with the service provider, contact the Motor Industry Ombudsman of SA.

• Visit www.miosa.co.za or contact the ombudsman on 010-590-8378 or email info@miosa.co.za