Guide
Car service plans: are they worth your money?
Are car service plans worth the money, or should you just get your car serviced when needed?
Words by: Andrew Woodhouse
Published on 21 July 2023 | 0 min read
When you buy a new or used car, you’ll likely be asked if you want to sign up for a car service plan, which covers the cost of a pre-determined number of scheduled services.
Rather than making the decision there and then, read our guide to what a car service plan covers before you buy your next car, so you can ask the smart questions and figure out whether it’d be right for you.
Rather than making the decision there and then, read our guide to what a car service plan covers before you buy your next car, so you can ask the smart questions and figure out whether it’d be right for you.
What is a car service plan?
Car service plans are pre-payment plans that cover a fixed number of services over a set period of time, or up to a set mileage limit. Many service plans are available are paid on a monthly direct debit, but you may also be able to make a one-off payment upfront.
The service plan’s coverage will vary depending on the provider and the terms and conditions, but you can generally expect to see all the standard elements of a car service included. In their most basic form, service plans only cover scheduled servicing. Some service plans also cover the cost of additional repairs and replacement parts, so always ask what is covered. Note that some elements, like brakes and tyres, may not be included in the service plan as they’re classed as wear-and-tear items, so they’re generally more difficult to estimate when they need changing as it's largely due to driving style.
The service plan’s coverage will vary depending on the provider and the terms and conditions, but you can generally expect to see all the standard elements of a car service included. In their most basic form, service plans only cover scheduled servicing. Some service plans also cover the cost of additional repairs and replacement parts, so always ask what is covered. Note that some elements, like brakes and tyres, may not be included in the service plan as they’re classed as wear-and-tear items, so they’re generally more difficult to estimate when they need changing as it's largely due to driving style.
How do car service plans work?
Car service plans spread the cost of servicing over a set period of time, rather than leaving you to pay for it in one go when you get the service.
Typically, you’ll agree to pay upfront or pay a monthly amount. Your plan will cover a set number of services, for a set mileage and/or a set period of time – for example, three services over three years, or over 30,000 miles (whichever comes first). You’ll have to take your car to an approved service centre (the dealership should give you a list), and the cost of the service will be covered by the plan you pay into. Service plans aren’t credit agreements, so you won’t need a credit check to get one and you should be able to get a refund of unspent money if you cancel your plan at any point. But this also means they aren’t regulated by the Financial Conduct Authority (FCA).
Typically, you’ll agree to pay upfront or pay a monthly amount. Your plan will cover a set number of services, for a set mileage and/or a set period of time – for example, three services over three years, or over 30,000 miles (whichever comes first). You’ll have to take your car to an approved service centre (the dealership should give you a list), and the cost of the service will be covered by the plan you pay into. Service plans aren’t credit agreements, so you won’t need a credit check to get one and you should be able to get a refund of unspent money if you cancel your plan at any point. But this also means they aren’t regulated by the Financial Conduct Authority (FCA).
How much do service plans cost?
This depends on the car, the length of the plan and other factors. A single year’s servicing for a basic make/model will cost much less than a plan covering several years of servicing and maintenance for a luxury car.
The level of cover will also affect price – standard servicing will cost less than a service plan with replacement parts included.
The level of cover will also affect price – standard servicing will cost less than a service plan with replacement parts included.
Are car service plans cheaper than paying as you go?
Service plans typically offer a discount on the cost of individual services, so chances are you’d save a bit over the years (always check the maths yourself though).
Most service plans also offer protection against rises in costs (like oil and labour) over the duration of the plan. As you’re also committing to regular servicing, you’re more likely to catch issues before they develop too much, so a service plan can help you avoid the cost of unexpected heavy repairs.
Most service plans also offer protection against rises in costs (like oil and labour) over the duration of the plan. As you’re also committing to regular servicing, you’re more likely to catch issues before they develop too much, so a service plan can help you avoid the cost of unexpected heavy repairs.
There are other advantages to car service plans
As you’ve paid up-front, you'll have peace of mind knowing your car is covered for standard servicing.
As mentioned above, regular servicing is important for maintaining the health of your car. Catching minor problems early on can stop them developing into bigger and more costly issues. And when you come to sell your car, you’ll find buyers (both private and dealerships) much prefer a vehicle with a full service history. If they know you’ve looked after your car, and that it’s in good condition, you’ll likely get a better price for it when you’re looking to sell.
As mentioned above, regular servicing is important for maintaining the health of your car. Catching minor problems early on can stop them developing into bigger and more costly issues. And when you come to sell your car, you’ll find buyers (both private and dealerships) much prefer a vehicle with a full service history. If they know you’ve looked after your car, and that it’s in good condition, you’ll likely get a better price for it when you’re looking to sell.
Disadvantages of car service plans
As with everything, there are drawbacks to consider too.
There’s the cost, especially if it’s an upfront payment needed. A car is already a pricey purchase, and when you start adding extra expenditures you can find your budget stretched. We’d encourage everyone to explore their options when it comes to new car add-ons, so that you don’t have to make a sudden decision without knowing the background. Check the flexibility of the contract too. As car service plans are decided when you buy the car and cover a fixed term, they may prove inflexible should your circumstances change. That said, many service plans can be flexible – you can cancel and get a refund, or transfer any balance onto a service plan for a different vehicle (or to a new vehicle owner). You may also be able to increase your mileage and adjust your monthly payment to ensure there is sufficient money in place to cover the future services. As ever, make sure you shop around and find a contract that offers the flexibility you need. You should also check what your service plan covers. Many only cover the cost of standard servicing and maintenance, so they may not cover the cost of unexpected repairs or replacement parts.
There’s the cost, especially if it’s an upfront payment needed. A car is already a pricey purchase, and when you start adding extra expenditures you can find your budget stretched. We’d encourage everyone to explore their options when it comes to new car add-ons, so that you don’t have to make a sudden decision without knowing the background. Check the flexibility of the contract too. As car service plans are decided when you buy the car and cover a fixed term, they may prove inflexible should your circumstances change. That said, many service plans can be flexible – you can cancel and get a refund, or transfer any balance onto a service plan for a different vehicle (or to a new vehicle owner). You may also be able to increase your mileage and adjust your monthly payment to ensure there is sufficient money in place to cover the future services. As ever, make sure you shop around and find a contract that offers the flexibility you need. You should also check what your service plan covers. Many only cover the cost of standard servicing and maintenance, so they may not cover the cost of unexpected repairs or replacement parts.
How often do I need a car service?
Generally, drivers are recommended to get a service every 12,000 miles or 12 months, whichever comes first. These scheduled can change depending on the make/model of your vehicle so we’d recommend you consult your vehicle owner handbook.
Regular servicing will help your car to last longer and is essential for keeping on top of your car’s health. Catching a minor issue early can prevent larger, more costly damage later on. As services can include checks on brakes and seatbelts, a regular service can help keep you safe.
Regular servicing will help your car to last longer and is essential for keeping on top of your car’s health. Catching a minor issue early can prevent larger, more costly damage later on. As services can include checks on brakes and seatbelts, a regular service can help keep you safe.
Is it illegal not to service my car?
There’s no legal obligation to service your car, but it is your legal duty to ensure your car is roadworthy. Not knowing your car isn’t roadworthy because you didn’t get a service isn’t an excuse.
What to ask if you’re getting a car service plan
• Which service centres you can use, and whether the coverage is national (especially if you’re buying a car online and not locally).
• Whether you can cancel the plan, or transfer it to another car, if you sell the car. Sometimes, you may only be able to do this is the car is of the same make, or with the same dealer. • What types of service are included in the plan, and whether there are any restrictions or exclusions to the services covered. • The cost of the service plan, and what payment options are available. It’s also worth asking whether you’d get a discount for taking a longer-term plan out with the provider. • The specifics of the plan: how often can you take your car in for a service, whether there’s a limit on the number of claims you can make, what the process for making a service appointment is etc. • Think ahead to the end of the plan: what happens if you don't use all of the services included in the plan, whether you can cancel the plan before the contracted end date (and whether there are penalties for doing so)
• Whether you can cancel the plan, or transfer it to another car, if you sell the car. Sometimes, you may only be able to do this is the car is of the same make, or with the same dealer. • What types of service are included in the plan, and whether there are any restrictions or exclusions to the services covered. • The cost of the service plan, and what payment options are available. It’s also worth asking whether you’d get a discount for taking a longer-term plan out with the provider. • The specifics of the plan: how often can you take your car in for a service, whether there’s a limit on the number of claims you can make, what the process for making a service appointment is etc. • Think ahead to the end of the plan: what happens if you don't use all of the services included in the plan, whether you can cancel the plan before the contracted end date (and whether there are penalties for doing so)
Selling your car with a full service history
A full service history will help you get the best price when selling your car. For more tips, read our guide to selling a car and get a free valuation to find out how much your car is worth today.