Are car servicing plans worthwhile?
A servicing plan can help with budgeting, because it allows you to spread the cost of maintaining your car into smaller, more manageable monthly chunks instead of annual £100-plus lump sums. The most common plan lengths are two and three years. If you’re already paying monthly finance instalments for your car, the relatively small additional monthly outlay for a service plan could make sense.
Another important factor is that servicing plans are inflation-proof, because you’re paying a set price at the current rate, so in the current economic climate they might be a good idea if you’re concerned about prices rising.
Plans start at as little as £17 to £20 a month for a 24-month policy; that typically covers two services and might include two MOT tests for older cars. However, most service plans only cover labour and consumables (such as oil, filters and brake fluid) to comply with scheduled servicing, leaving you to pay for additional wear and tear items. That means you’re likely to still face additional bills when tyres and brake components need replacing.
Some car makers don’t expect to make any money on servicing plans offered for new cars; in fact, some might make a slight loss. They do this because it’s more important to keep customers coming back so they can offer other products and services, or even a replacement car a couple of years down the line.
In contrast, you’re unlikely to save money with an aftermarket service plan for a used car. A typical 24-month plan costs around £480 in total, but that is more than you’d pay for two services and MOT tests from an independent garage charging the average UK labour rate.
Taking out a service plan with a franchised dealer means your car will gain a main dealer service history, making it easier to sell when it’s time to move it on. However, main dealer servicing is often pricier than going to an independent garage, so if paying the lowest price overall is your priority, you’ll probably be better off without a servicing plan.
Bear in mind, too, that the price of a plan will be based on the recommended service schedule, so you can’t save cash by opting for a smaller service if your car’s mileage suggests a larger one is due.