Understanding the Difference Between Financing and Maintenance

When you finance a car, you’re paying off the cost of the vehicle over time—but those payments only cover the loan, not the ongoing care the vehicle needs. Financing does not include services like oil changes, tire rotations, or brake replacements. Once you leave the dealership, the responsibility for routine upkeep and unexpected repairs becomes yours unless they’re specifically covered under a warranty or a separate maintenance plan.

This can be a surprise for first-time buyers who assume that because they’re still “making payments,” the dealership might handle upkeep during the loan term. That’s rarely the case. Understanding where your loan obligations end and your maintenance responsibilities begin will help prevent unexpected expenses from derailing your budget.

What’s Typically Covered Under Warranties

Most new vehicles come with a manufacturer’s warranty that covers defects in parts or workmanship for a specific period, often around 3 years or 36,000 miles. In addition, many include powertrain warranties that extend coverage to the engine, transmission, and drivetrain components for 5 years or longer. These protections are valuable, but they don’t cover everything.

Warranties are primarily designed for unexpected mechanical failures—not everyday upkeep. Services like brake pad replacements, fluid top-offs, air filter changes, and tire wear are all considered routine maintenance and remain your responsibility. Even if a component is replaced under warranty, you may still be responsible for paying for related wear items or consumables, such as brake fluid or tires.

When Maintenance Might Be Included With a Lease or Purchase

Some lease agreements and new-car purchase promotions include complimentary maintenance, but this is the exception rather than the rule. Dealerships and automakers sometimes offer limited-time deals that bundle services to make their vehicles more attractive, especially during model changeovers or slow sales periods.

Typically, these plans cover only basic scheduled services and are usually valid for a limited time or a specified mileage. Examples may include:

• Oil and filter changes
• Tire rotations
• Multi-point inspections
• Cabin air filter replacements
• Scheduled fluid top-offs

It’s important to note that these services are built into the cost of the vehicle or lease rather than being “free.” In other words, you’re often paying for them as part of the overall purchase price or monthly payment. If you don’t use all the included services, you may not fully realize their value. Always read the fine print so you understand what’s covered, how long it lasts, and if there are limits on where you can have the work performed.

Optional Maintenance Plans and Coverage Add-Ons

If complimentary maintenance isn’t included, many dealerships offer prepaid maintenance plans at the time of sale. These plans group together routine services (like oil changes, tire rotations, and inspections) at a fixed upfront cost. For buyers who prefer predictable expenses, this can make budgeting easier.

It’s worth comparing the cost of the plan with what you’d pay if you scheduled services individually at a trusted mechanic. Some plans save money, while others may cost more than simply paying as you go.

You may also encounter extended warranties or vehicle service contracts, which focus on mechanical breakdowns rather than upkeep. While they can help with expensive repairs after your original warranty expires, they generally do not cover scheduled maintenance. Understanding the distinction between service contracts and prepaid maintenance is crucial when evaluating add-ons.

Why Staying Current on Maintenance Matters

Routine maintenance is one of the best ways to protect the investment you’ve made in your car. Skipping oil changes or delaying brake service can cause more serious damage, leading to repairs that cost hundreds or even thousands of dollars.

Consistent maintenance also preserves your vehicle’s resale or trade-in value. Dealerships and private buyers often request service records when evaluating a car’s worth, and a vehicle with a complete maintenance history is seen as more reliable. If you plan to sell or trade before your loan is paid off, keeping the car in good shape can also help prevent negative equity.

For first-time buyers, our breakdown of the importance of researching before buying highlights why planning for long-term ownership costs—like service, insurance, and repairs—can be just as crucial as negotiating the purchase price.

Building a Long-Term Maintenance Strategy on a Financed Car

Rather than thinking of maintenance as a surprise expense, treat it as part of your car’s monthly cost from the moment you drive it home. Create a simple budget category for routine service alongside your car payment, fuel, and insurance.

Mapping out your vehicle’s service schedule using the owner’s manual can help you plan for costs ahead of time. This allows you to spread out expenses like tire replacements or brake jobs rather than facing them all at once. It’s also wise to build a small repair fund, even if you’re still covered by warranty, to handle unexpected issues that might not be included.

As vehicles become more advanced, some repairs and maintenance tasks have become more expensive, especially with hybrid and electric models. Staying proactive not only extends the life of your vehicle but also reduces the risk of high-cost emergencies that can strain your budget or lead to loan delinquency.

By approaching maintenance with the same consistency as your monthly payment, you’ll protect your vehicle’s performance, preserve its value, and avoid financial stress throughout the life of the loan.