When you buy a car the financial implications need to be reviewed carefully. Not only will you need money to pay for the purchase of the car and car insurance but you also need to calculate the running costs of the car. Included in the running costs will be items such as fuel, oil, tyres, maintenance and servicing.

It is important to have your car serviced on a regular basis to ensure it always remains in a roadworthy condition. Being roadworthy is a condition of any car insurance policy and claims can be repudiated by the insurance company if the car was found not to have been roadworthy at the time of an accident. When you buy a brand new car there will often be a service plan included in the price. The service plan cover is for an agreed period and distance. Read all the details regarding your service plan as there are different types of plans. Some only cover maintenance items such as oil, spark plugs, oil filters etcetera, while others may include different items.

Some companies and insurance companies now also offer maintenance service plans for cars older than three years, up to a ten year old car, or a maximum of 250 000 kilometers. If you are interested in buying a product such as this make sure you deal with a reputable company. Not all companies selling this product are registered insurers in terms as the Financial Advisory and Intermediary Services Act. (FAIS)