Owning a car involves more than just buying it, fueling it, and insuring it. You also need to understand what it will cost to maintain and keep it running for as long as you plan to own it.
The good news is that if you’re buying a new or fairly new pre-owned car, there is usually some form of warranty, service plan, or maintenance plan included.
These plans are designed to protect you from large, unexpected repair costs. Some cover routine servicing based on time or mileage intervals set by the manufacturer. While others go further by covering wear-and-tear items or mechanical failures.
The problem is that many car owners don’t actually understand the difference between these plans. Ask the average driver what their plan covers, and chances are they’re not completely sure.
If you’re a new car buyer or a used car owner, this guide will help you cut through the confusion.
By the end, you’ll have a clear understanding of the differences so you can make informed decisions about what coverage you really need.
Table of content
Service plan
Every new car comes with some form of service plan. A service plan covers the cost of regular, scheduled servicing based on specific mileage or time intervals.
This typically includes the cost of parts, labour, and fluids required during servicing at set mileage points, such as 15,000 km, 30,000 km, and 45,000 km.
Depending on the manufacturer, some service plans can last up to six years or 100,000 km.
The parts and fluids usually covered include engine oil, oil filters, air filters, and spark plugs.
A common mistake car owners make is assuming that a service plan covers mechanical damage or failures. It does not. Things like engine failure, brake pad wear, accident damage, or bodywork repairs are not included in a service plan.
In simple terms, a service plan only covers routine servicing. It excludes damage and wear-and-tear items.
In simple terms, a service plan only covers routine servicing. It excludes damage and wear-and-tear items.
If your brake pads are worn, your tyres need replacing, your windscreen wipers are due for a change, or there’s a chip in your windscreen, these costs will not be covered by your service plan.
Maintenance plan
A maintenance plan builds on everything you already get in a service plan. In addition to covering routine servicing at set intervals, a maintenance plan also covers certain components that may wear out or fail over time.
This includes both labour and the replacement of wear-and-tear items such as brake pads, brake discs, batteries, shock absorbers, windscreen wipers, the clutch, gearbox, engine, and some exhaust parts.
Exactly what is covered can vary by manufacturer, so it’s always worth checking the details of your specific plan.
For many luxury vehicles, the cost of the maintenance plan for the first 5 to 6 years of the car’s life is already built into the purchase price when buying the car new.
A maintenance plan usually remains valid even if the car is sold, provided all servicing and repairs are carried out by an approved dealer or workshop.
If this requirement is not followed, the plan can be voided. This is especially important to check when buying a pre-owned car.
If a car no longer has a maintenance plan, or only has a service plan, some manufacturers may allow you to upgrade to a maintenance plan at an additional cost.
What a maintenance plan doesn’t cover
Even though a maintenance plan offers broader protection than a service plan, it does not cover everything.
Items such as tyres, wheel alignment, and windscreen cracks are typically excluded. Damage caused by accidents is also not covered.
In addition, a maintenance plan will not cover wear and tear resulting from misuse, neglect, or driving in extreme conditions.
Warranty
A warranty is a promise or guarantee from the car manufacturer or dealership to repair or replace a part if it fails due to a manufacturing defect within a specific time or mileage limit.
New cars come standard with a factory warranty. These warranties typically last between three and five years, or up to 100,000 to 200,000 km, whichever comes first.
Just like service and maintenance plans, warranties can often be extended once they expire. This additional cover is known as an extended warranty.
A warranty mainly protects you against unexpected mechanical or electrical failures that are not caused by wear and tear or neglect. You can think of it as insurance against faulty parts rather than routine upkeep.
To keep a warranty valid, the vehicle must be serviced according to the manufacturer’s schedule and at approved dealers or workshops.
What a warranty doesn’t cover
Warranties do not cover routine servicing or wear-and-tear items. The main focus of warranties is parts, but parts such as tyres and brake pads are excluded because they are expected to wear out over time.
Damage caused by accidents, negligence, lack of servicing, or improper use is also not covered. Routine maintenance items are the owner’s responsibility.
Failing to service your vehicle on time or using an unauthorised workshop can void your warranty, so it’s important to follow the manufacturer’s requirements closely.
Extended Warranty
An extended warranty is a contract you purchase to continue coverage after the factory warranty expires.
These warranties can be offered by car manufacturers, dealerships, insurance companies, or specialised third-party providers.
Coverage can vary widely depending on who provides it and what level of protection you choose.
Because of this variation, it’s important to read the fine print before committing. Pay close attention to what parts are covered, claim limits, excess fees, and which repairers are approved under the contract.
An extended warranty can be a useful safety net, especially for owners who plan to keep their cars long-term or rack up high mileage.
However, its value depends entirely on the terms of the cover and how well it matches your driving habits.
Side-by-Side Comparison: Warranty vs Service vs Maintenance
| Feature | Warranty | Service Plan | Maintenance Plan |
|---|---|---|---|
|
Covers mechanical defects |
✔️ |
❌ |
Only some caused by wear and tear |
|
Covers scheduled services |
❌ |
✔️ |
✔️ |
|
Covers wear-and-tear parts |
❌ |
❌ |
✔️ |
|
Time/mileage limits |
✔️ |
✔️ |
✔️ |
|
Can be extended |
Yes |
Yes |
Often |
|
Requires scheduled servicing |
Yes |
Yes |
Yes |
|
Voided if serviced at an unauthorised workshop |
✔️ |
✔️ |
✔️ |
How to Decide What You Need
- New cars: Most new cars come with a factory warranty and a service plan. Upgrading from a service plan to a maintenance plan usually offers the highest level of protection during the first few years of ownership.
Used cars: Many used cars, especially fairly new ones, may still have an active factory warranty. If the warranty has expired, an extended warranty can help protect you from major repair costs, particularly if you plan to keep the car for a long time or drive high mileage. If your service plan has also expired, pay-as-you-go servicing is often sufficient.
High-mileage or older vehicles: As a car gets older, extended warranties tend to become more expensive and may offer more limited cover. If you can afford one and the terms make sense, it can still provide peace of mind. If not, building a relationship with a trusted mechanic and paying for servicing and repairs as needed is often the more cost-effective option.
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