Warranties and maintenance plans

Once you’ve chosen your car, the next issue is how you’re going to keep it in top condition. You will probably be offered options such as a warranty, maintenance plan and service plan, and it can seem a bit complicated. Knowing what each product’s benefits are can help you to make the right choice for your needs.


A warranty

A vehicle manufacturer warranty is the car maker’s promise that if the vehicle has faults caused by the manufacturing of the vehicle, they will fix them. New cars come with warranties, but each make and model will differ in what the warranty covers and how long it will last. A warranty only covers damage caused by errors that happened during the car’s manufacture, and not wear and tear or any damage caused by the driver.

Your finance provider may also offer you a warranty when buying a second-hand car or an extended warranty for after your manufacturer warranty expires. Similar to a manufacturer warranty, it may only cover damage caused by manufacturing faults to certain parts of the car.


Service plan

This pays for your car’s regular services as prescribed by the manufacturer at set intervals, either a period of time or mileage. It usually only covers the cost of a standard service, and no other repairs or replacement of parts.


Maintenance plan

Maintenance plans differ in what they cover, but most include the cost of servicing plus general wear and tear repairs.


With all of these options, make sure you know exactly what parts are covered and what the exclusions and limitations are before you choose. You will need to follow the requirements of the plan carefully, including where you can take your car to be serviced or maintained.

Also, bear in mind that none of these types of plans will pay for accident damage – that needs to be covered by your comprehensive insurance, which is typically a requirement for all vehicle finance contracts.


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