Almost all new cars today are sold with either a service or maintenance plan; some cars still have these intact when they go on sale, but what are they, how do they work, and what are you getting when purchasing?
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Both plans help you pay for car care in advance, but they cover different things. Knowing which one you are buying stops you from paying twice for the same service.
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What a service plan covers
A service plan is a set of scheduled checks that keeps your car running as the manufacturer intends. It usually follows the distance or time intervals in the owner's manual so that a typical plan might cover an oil and filter change, a brake inspection, a fluid top-up, and a diagnostic scan at every service.
The carmaker or a dealership sells most service plans, and they often stay valid only if the work is done at an authorised workshop. The plan keeps your service history stamped and your warranty intact. It does not usually pay for wear-and-tear parts like tyres, brake pads or batteries.
What a maintenance plan covers
A maintenance plan, sometimes called a prepaid service plan, spreads the cost of routine upkeep over a fixed period or mileage. You pay upfront, monthly, or as part of the car finance, and the provider covers the agreed services and often some wear-and-tear items as well.
This type of plan is usually administered by a third party or the lender rather than the carmaker alone. Read the small print carefully, because the list of covered items, the labour rates and the claims process differ widely between providers.
Key differences
Service plan | Maintenance plan | |
|---|---|---|
Main purpose | Keep the car serviced to manufacturer spec | Pay for routine upkeep in advance |
Usually sold by | Car maker or dealership | Car maker, Dealer, lender or third-party provider |
Covers wear-and-tear parts | Rarely | Often, depending on the plan |
Warranty link | Often required to keep the warranty valid | Not usually required |
Typical cost model | Paid per service or as a bundled package | Upfront or monthly, over a set term |
Which one to choose
If your car is still under the manufacturer's warranty, a service plan is usually the safer choice, because it keeps that warranty valid. Check the owner's manual and the plan's terms before you sign.
If your car is out of warranty and you drive a lot, a maintenance plan can make budgeting easier. Compare the total cost with paying for each service as it comes up, and ask whether the plan covers the parts you are most likely to replace, such as tyres and brakes.
Whichever you choose, keep all invoices and stamps in one place. Good records make your car easier to sell and help you prove that the work was done.
