Is a Service Plan Worth Buying for a Company Car?

Cars need regular maintenance and servicing to make them efficient and durable. You can decide to buy a service plan from the car dealership or use the local mechanic to handle these tasks.  Car dealerships offer service plansthat need careful evaluation. You should ask these basic questions to understand the mutual relationship from this deal. The following are the advantages of a pre-paid service plan.

Assurance of genuine parts

Such companies are concerned about repeat business and will thus use original equipment and parts when handling your car. Most dealerships have a direct connection with the manufacturer and can offer software upgrades at no extra cost.

Handling by qualified staff

Unlike the local garage, a dealership has qualified staff trained to handle your car type accurately. Such service-person handles such models on a daily basis which gives them the experience needed for many tasks. They assure you of personalized services because they want to keep you close to their business.


This point applies if you want to resell your car in the future. Potential buyers will be interested in the service history, and the company tasked with these activities. Stamps from the main dealership assure such customers that the vehicle has been in safe hands. It is also easy to convince the potential customer that the car has genuine parts.

The maintenance costs do not fluctuate

The dealership sets the servicing costs based on the current market value. That means that they shall repair your car using the same prices in the future even if there are market inflations. The cost of spares and labour will be within the plan that you sign, and this ensures that you can estimate spending and plan accordingly.


The main disadvantage of a service plan is the higher price when compared to a local mechanic. You can save up to 50% on the service cost from a garage (but with this basic interactive MOT you might even be able to attempt your own checks).

A dealership can offer discounts also in a bid to entice and keep you close. You have to evaluate the two options carefully to determine whether prepaid car maintenance saves you money. If you choose against a service plan, just make sure that you use a qualified and licensed mechanic for repairs if your car is under warranty.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

Speak Your Mind


This site uses Akismet to reduce spam. Learn how your comment data is processed.