Are Car Servicing Plans worth it?
When looking for a used car, one of the biggest decisions you will have to make is whether or not to buy a car servicing plan. These plans can be expensive, so it is important to understand what they offer and whether or not they are worth the money. This blog post will discuss the pros and cons of car servicing plans and help you decide if buying one is right.
What Is a Car Servicing Plan?
Dealerships and other providers offer car servicing plans to help you budget for future servicing costs. These contracts often cover 1-3 years of service at a fixed monthly or yearly rate, depending on your car’s make and model. Some plans include roadside assistance, towing, and rental car reimbursement.
While the coverage and benefits of each plan vary, they all aim to provide peace of mind and help you budget for future servicing costs. You don’t have to worry about rising costs for parts and labour when you book your car for maintenance; the price of the services is set at the point of sale.
If you’re planning to buy a new automobile, you may consider purchasing an official manufacturer service plan or their version. If you choose this route, keep in mind that franchised dealerships authorised by the manufacturer will need to carry out any work included in the plan. This is beneficial as your car will have main dealer stamps in its service book and a history of only using genuine parts.
How Much Does It Cost?
Service plans from different manufacturers can cost widely and change based on the car you buy. For example, some might charge one lump fee for several services that work with any car they sell. However, it’s more typical for service plans to be customised by model and fuel type, while many offer various coverage durations.
The average service plan in the UK costs between £500 and £750 a year. In contrast, the average cost of an annual service without a plan is about £200. This means that, over three years, you would save £600 with a servicing plan. However, this is just an estimate; the amount you save will depend on how often you use the services included in your plan.
Is it Better Than Just Paying As You Go?
This is a tough question as it depends on several factors. For example, if you only ever take your car in for the yearly service, you would likely be better off paying as you go. However, if you find yourself using the other services included in the plan, such as roadside assistance or towing, it could be worth the investment.
Additionally, it is important to consider the type of automobile you own. If you have a luxury vehicle with high servicing costs, a plan could help you save money in the long run. On the other hand, having a more budget-friendly car might not be worth the investment.
The best way to decide if a car servicing plan is right for you is to weigh the plan’s cost against the estimated cost of the services it covers. This will help you determine whether or not you are likely to save money by signing up for a plan.
Do Many Car Owners Have Service Plans?
The number of car owners with service plans has increased over the past few years. In 2017, 1.72 million UK drivers had a service plan, which accounted for 8% of all cars on the road. This is up from 1.47 million (6.8%) in 2016 and just 1.21 million (5.6%) in 2015.
The increase in popularity is likely due to the many benefits car servicing plans offer. In addition to helping drivers budget for future servicing costs, they can also provide peace of mind and protection in the event of an unexpected breakdown.
Service plans entice dealers and manufacturers with the prospect of future service revenue and retain customers who would otherwise take their business elsewhere. More than that, They are guaranteed to see you once a year and, if all goes according to plan, may purchase another car from you down the line. Customers use these sorts of plans monthly to budget better by avoiding large bills later on.
What Are The Disadvantages?
Some disadvantages to signing up for a car servicing plan. You may not use all of the services included in the plan. This means you spend more money than you would without the plan. If you sell your car before the plan expires, you will be unable to transfer the remaining coverage to the new owner.
Additionally, it’s important to know that some service plans have mileage restrictions. You may have to pay extra for services if you drive your automobile more than the specified miles in a year. Read any plan’s fine print before signing up to avoid unexpected costs.
Is It Worth It?
Ultimately, whether or not a car servicing plan is worth it depends on your individual needs and circumstances. Consider the plan’s cost, the services included, and how often you typically use them. Additionally, weigh the pros and cons to decide if a plan makes sense for you.
Spreading the cost of servicing your car into a monthly payment can save you from stressful, large bills. Many plans also include annual MoT tests, which help plan maintenance costs over several years.
The only conditions to this are detailed in the small print and what is included or not included within the bundled price. For example, you will most likely have to replace some brake discs and tyres if they are picked up as needing attention during a planned service, so take that into account when considering this deal.
The Bottom Line
If you’re considering purchasing a car servicing plan, it’s important to weigh the plan’s cost against the estimated cost of the services it covers. You should also consider the car you own and how often you drive. Considering all of these factors, you can make the right decision about whether or not a car servicing plan is right for you.
