Hello Mabs
I keep seeing "service plan" "maintenance plan" and "warranty" when comparing cars. I thought they all basically meant the manufacturer looks after the car for a few years. What am I actually paying for with each one?
Mabs Answers:
This confusion is incredibly common, and understanding the difference can save you money. Think of a service plan as covering scheduled services for a specified period or mileage, according to its terms.
A maintenance plan generally goes further and may cover certain wear-and-tear items in addition to scheduled servicing, depending on the particular plan.
A warranty is different. It generally protects you against specified defects or failures during the warranty period. It isn't a promise to pay for everything that goes wrong with the car.
The important words here are "according to the terms". Cover differs between manufacturers and products, so don't accept "it comes with a plan" as enough information.
Ask the salesperson exactly what's covered, what's excluded, when the cover expires and whether there are conditions attached. Get it in writing before you sign.
