Motor Sevice Plan

Jings

Jings

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Is is worth taking out a motor service plan on a new car or is it better to "pay as you service"? The services exclude damage to windscreen and tyres.
 
What is the pricing and what on what car ?
 
That 3 year price looks pretty enticing if you would service the car on average twice a year.
 
ToxicBunny said:
That 3 year price looks pretty enticing if you would service the car on average twice a year.
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That's the thing. It does look enticing considering cost of services have been going up. The salesperson said no extra cash for service is required if the plan is taken up.
 
Except when you need to change the brakes and they want to charge your R2500 anyway since it isn't covered etc.

If you do a lot of mileage it's often worth it.

If not don't bother.

Recently bought a bike and chose not to take the service plan as it didn't make sense for the mileage/time. Glad I was right as I'm already in the second of three years according to the mileage so wouldn't have gotten my money's worth out of it.
 
SauRoNZA said:
Except when you need to change the brakes and they want to charge your R2500 anyway since it isn't covered etc.

If you do a lot of mileage it's often worth it.

If not don't bother.

Recently bought a bike and chose not to take the service plan as it didn't make sense for the mileage/time. Glad I was right as I'm already in the second of three years according to the mileage so wouldn't have gotten my money's worth out of it.
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Thanks for the tip, I'll read the fineprint on what's not covered. Mileage on average is about 2 500kms a month. Would it be considered a lot?
 
Well that's two services a year (depending on car I'm going on 15000km intervals).

So make sure that the mileage limitation doesn't cut your plan short.


Average service without brakes as such should be no more than R2500.
 
My wife bought a new picanto 3 weeks ago, 1.2ex auto with sunroof and 3 year full maintenance plan for R159k. Service plan not quite worth it if u ask me, but maintenance plan definitely is.
 
Work you mileage per year. And then the number of services the car will need over a 3 year period.

Add up the costs of the service then add escalation costs and compare the costs of the service plan.
You also need to factor in interest charges, if you finance it as part of the purchase price.

Note a service plan does not cover wear and tear items and the cost of labour required to replace them.

Generally with a kia, you can service the car without many surprises. It is good they give the customer the option to buy the service plan.
 
Thank you for all the advice. I hadn't realised until now that there a number of things to consider when taking out a plan and will pose all the questions to the salesperson from the advice offered before making the decision.

On a side note, I asked about their sales. It appears the number of consumers buying new motor vehicles has decreased since March by 30 percent but they are expected to rise again in the new financial cycle beginning in July.
 
Some experts are predicting a US stock market crash this year.

If that happens there will not be a recovery.
 
In the business, we have noticed a massive drop off in sales this year - our target last month was 160 and we battled to do 60, so heaven only knows where this economy is going.

With respect to service/maintenance plans, it is always better to go the maintenance route if you want full peace of mind.

2500 / month is considered highish, as that equates to 30 000 / year, v/s 20 to 25, so just make sure mileage and plan aren't at odds.
 
Fazda said:
In the business, we have noticed a massive drop off in sales this year - our target last month was 160 and we battled to do 60, so heaven only knows where this economy is going.

With respect to service/maintenance plans, it is always better to go the maintenance route if you want full peace of mind.

2500 / month is considered highish, as that equates to 30 000 / year, v/s 20 to 25, so just make sure mileage and plan aren't at odds.
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The economy is slowing down massively.

Has been for awhile, I think people are just catching on now. My folks just bought a "previously loved" A3, and managed to knock R25k off the price without even fighting too hard. Clearly auto dealers have stock they NEED to get rid of :)...

Agreed on the mileage thing, do the sums, see that it works out for you then make a decision, do not just listen to the salesman.
 
Thank you everyone for all your advice.

Finally received the car today (before total economy slump :D ). The service plan is great and practically covers everything. Now to get used all the knobs and gadgets.
 
jingaling said:
About 150k including optional extras - Kia Picanto with 3 year (R8 000 ) or 5 year service plan (R22 000).
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What are the stipulations wrt mileage vs years?

How many km's do you intend doing in a year?

But R22k does not sound bad for 5yrs considering what stealerships charge you for minor services these days. I would however get a list of things covered and not covered in the service plan before making a decision.
 
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ponder said:
What are the stipulations wrt mileage vs years?

How many km's do you intend doing in a year?

But R22k does not sound bad for 5yrs considering what stealerships charge you for minor services these days. I would however get a list of things covered and not covered in the service plan before making a decision.
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On average I've travelled about 30 000kms per year. Service is covered for every 15 000kms. Windows and tyres are the only exclusions.

Too late if it was the wrong decision, deal is signed already, but no payment for services for 5 years is not bad since you mention about the cost of minor services these days.
 
that motorplan is likely to finish at around 3 years with that milage.
It is probably capped at 90/100k km driven
 
jingaling said:
On average I've travelled about 30 000kms per year. Service is covered for every 15 000kms. Windows and tyres are the only exclusions.

Too late if it was the wrong decision, deal is signed already, but no payment for services for 5 years is not bad since you mention about the cost of minor services these days.
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Please be specific. A service plan only covers services and not maintenance.
So if your AC breaks or the clutch wears you have to pay these separately.
 
Venomous said:
that motorplan is likely to finish at around 3 years with that milage.
It is probably capped at 90/100k km driven
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Quite possibly capped at 100k.

tRoN said:
Please be specific. A service plan only covers services and not maintenance.
So if your AC breaks or the clutch wears you have to pay these separately.
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How more specific do you want me to get? It's a service plan. Basic services alone were costing about R3 000 on the old car so at least no need to pay for them for quite some time.
 
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