MAINTENANCE PLANS
A maintenance plan takes care of everything included in a service plan, as well as components that need to be replaced because of normal wear and tear. The components may include brake pads, V-belts, wiper blades, the exhaust system, clutch, light bulbs and shock absorbers.
A maintenance plan is included in the price of vehicles at the upper end of the market, and has proved useful in boosting sales of models nearing the end of their run. The plan is valid for a fixed period or number of kilometres, whichever comes first.
Many entry-level and second-hand buyers are prepared to pay for this level of protection, because it delivers financial peace of mind. For example: to extend the standard five-year full maintenance plan for an Audi A3 Sportback 1.8T by 12 months would cost about R23 000; a 24-month contract raises the cost to about R46 000. In Audi’s case, the deal may specify the period of cover, maximum mileage, or a combination of these.
In some cases, buying an extended warranty or even a maintenance plan represents a bet (or, at the very least, a hedge): motorists dig into their pockets on the assumption that they will be covered if something goes wrong, because someone else will pay for the repairs (which may well cost more than the price of the maintenance contract), whereas the manufacturer and dealer are betting that, if customers stick to the rules and look after their cars, they will not suffer mechanical failure, and the sellers will score a useful percentage.
The evidence suggests that, in Toyota’s case, the actuaries have done their homework. The brand is consistently among the top performers in vehicle reliability surveys.
At the upper end of the market, MercedesBenz offers PremiumDrive, a standard maintenance plan that covers new vehicles for 100 000km or six years, whichever occurs first, with no contribution required from the customer during this period. Among its benefits are roadside assistance, a towing recovery service, accommodation and car hire. PremiumDrive is not optional; you cannot buy a new Mercedes without it.
Customers may also select from a range of top-up options that kick in after the expiry of the standard PremiumDrive cover. In all cases, these are limited to eight years. So if someone buys an entry-level Mercedes-Benz C 180 sedan (R436 700) now and wants to extend the maintenance plan by two years and add 40 000km to the original mileage allowance, they would pay an additional R46 000-odd for the PremiumDrive 160 product.
Edmin Naidoo, the divisional manager of after sales for Mercedes-Benz cars, said this option provides peace of mind, because it encompasses servicing, wear and tear, as well as major repairs, excluding accident damage. “There are no additional, hidden costs to the customer.”
However, a maintenance plan does not guarantee that motorists will not have to cough up for unexpected events – such as catastrophic gearbox failure – that may occur after the expiry of the vehicle’s original warranty. This degree of protection requires something called an extended warranty.