Whether you’re buying a car new or second-hand, you will have the option to purchase a service plan. A service plan provides you with a service every year (or sooner if you have high mileage). It ensures your car stays in good shape as the years go by.
But is a service plan worth it? Do you really need such regular maintenance and would it be more expensive to pay for it yourself?
Here’s what you need to know.
Service Plan vs Warranty vs Insurance
People often confuse what a service plan covers with what you get in a warranty and insurance policy. The reality is that these three things cover very different aspects.
Insurance will cover the cost of repairing or replacing your car if it is damaged in a collision or by a named peril, or is stolen. The cost of car insurance is determined based on the fact that you may make major claims. This is why you pay a monthly fee for insurance as opposed to the one-off fees you pay for a service plan or warranty.
A warranty covers repairs to your car if something breaks during the period covered by the warranty. This excludes any damage caused by collision or negligence. It serves as an assurance that you have recourse if the car incurs damage that is not due to wear and tear.
What is the difference with a service plan? A service plan is not about repairing the car but about maintaining it. It includes measures to keep your car in good shape as time passes by. Here is what it includes.
What does a service include?
A full car service includes system checks and adjustments to all the important working parts of your car. It covers the following, among other things:
- engine oil changes and filter replacements
- tuning your engine to peak performance
- checking your car’s lights, tyres, exhaust, brakes, suspension, and steering
- checking hydraulic fluid and coolant levels
- checking the cooling system
- car battery check
All of the above things ensure not only that your car is in tip-top shape, but that it does not have any issues that could cause you problems. A car service is therefore incredibly important. It is certainly something you should do at least once a year.
However, you can take your car for a service without a service plan. Do you really need to buy a service plan along with your car?
Is your service plan worth it?
Considering that you could take your car to your local mechanic to carry out a service, is it worth paying for a service plan at the start? A service plan will almost always cost less than what you’d pay over the years for your services, but that does not mean it is worth it.
There are a few factors which could make you doubt the value. Money in your pocket is worth more than what you’ll save in the future. Furthermore, if something happens to your car and you need to replace it, or you simply sell it before your service plan runs out, you won’t get the full value out of it.
Nonetheless, a service plan is still probably worth it. It is not so expensive that you will miss the funds or the money you would make by investing them. And, if you sell your car before the service plan is up, it will add to your car’s value. People will pay more for a car with a service plan (as well as evidence that you have taken it for regular services).
Getting a service plan also ensures that you don’t forget to take care of this important task. It is easy to forget about something you have to do just once a year. The fact that your car manufacturer will get in touch about services is a big help.
Ultimately, a car service plan is probably worth it, although you can pay for each service individually if you prefer. A service plan won’t save you that much money, but it will save you funds in the long run as well as a lot of effort.