Maintenance Plan
A maintenance plan, also known as prepaid maintenance or a service plan, is an optional program that allows drivers to pay upfront for routine vehicle services over a specific timeframe or mileage limit. These plans often cover oil changes, tire rotations, multipoint inspections, brake checks, and sometimes more extensive services like transmission fluid replacement or air filter changes.
Offered by manufacturers, dealerships, or third-party providers, maintenance plans provide convenience and budget predictability by locking in service costs at current rates. For consumers, the benefit is that they can avoid unexpected service expenses, particularly if repair costs rise during the ownership period.
Plans are also often transferable, which can add resale value if the vehicle is sold before the plan expires. On the downside, maintenance plans may be more expensive than paying out of pocket, especially for vehicles with lower maintenance needs or for drivers who do not follow manufacturer-recommended service schedules closely.
Some plans require services to be performed at specific dealerships, which may limit flexibility. For dealerships, maintenance plans generate upfront revenue and encourage customers to return to their service departments, increasing long-term loyalty.
For manufacturers, they help promote proper vehicle care, which improves brand reliability and customer satisfaction. Consumers considering maintenance plans should compare costs against expected maintenance schedules, evaluate whether the services included match their driving habits, and confirm whether the plan can be transferred or refunded if unused.
Ultimately, maintenance plans are most beneficial for drivers who value convenience, prefer predictable budgeting, or plan to own the car long enough to use the coverage fully.
Example
Samantha buys a prepaid maintenance plan when leasing her SUV. It covers oil changes and tire rotations for three years. She enjoys the convenience of no additional service bills and later highlights the transferable plan as a selling point when returning the lease.