Service plan is convenient and cost effective
The question of whether it makes financial sense to buy a service plan for a used car or a vehicle out of its warranty period always raises debate.
Les Mc Master
Les Mc Master, chairman of the Motor Industry Workshop Association (MIWA), believes it's important to have a service plan despite it being seen as a grudge purchase.
"A service plan covers, for a specific amount of time or mileage, the scheduled maintenance spelled out in the vehicle owner's manual. Possibly the strongest pull for a service plan for customers is the convenience factor. Busy car owners may prefer a service plan because it means they'll have one less thing to think about. If the maintenance is paid for monthly, and it can only be performed at accredited workshops, then the burden on the consumer is minimised," explains Mc Master.
"Monthly service plans are designed with affordability in mind to allow consumers the privilege of regular maintenance coupled with a report and early warning detection of potential repairs. It also ensures locked in repair costs. Paying for servicing in advance means that the car owner's costs won't go up in years to come, adding stability to household budgets. Additionally, a service plan contract can now be financed monthly over an extended period," says Mc Master.
Spreading the cost
Mc Master says car owners need to be aware that many modern vehicles don't require extensive maintenance, so the service plan should tie in with a vehicle's requirements and the manufacturer's recommendation.
"We are living in tough economic times and spreading the cost of servicing may be the answer. Service plans can be a viable option at a fraction of the cost. The bottom line is it is vitally important to regularly service a vehicle and preventative maintenance and early detection is far more cost effective in the long run."
Mc Master believes that the answer lies in getting all the information before purchasing a service plan. "Consumers need to understand clearly what is covered by the plan, what the manufacturer's recommended service intervals are, and what a workshop will charge for those services on a pay-as-you-go basis. Find the service plan that works for you," he concludes.
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