Prepaid maintenance plans are often offered by dealerships during the final stages of purchasing a vehicle. While they may seem like a convenient way to save on regular service costs, they’re not a one-size-fits-all solution. Whether a plan is truly worth it depends on your driving habits, budget, brand loyalty, and how you prefer to maintain your vehicle.

What Is a Prepaid Maintenance Plan?

A prepaid maintenance plan is an agreement where you pay upfront for a package of services your car will need over time, typically based on mileage or time intervals. These services are usually limited to what’s listed in the vehicle’s maintenance schedule—things like oil changes, tire rotations, and fluid top-offs.

Some plans are backed by the manufacturer and honored at any franchised dealership across the country. Others are dealer-specific and only valid at the location where the car was purchased. Before buying, it’s critical to know which one you’re getting and what limitations it may have.

When a Prepaid Plan Might Be Worth It

A prepaid maintenance plan isn’t automatically good or bad—it all comes down to how you use your vehicle and where you plan to service it. Some drivers benefit from the convenience and potential savings these plans offer, while others find they pay for services they never actually use. Before committing, it helps to think about your driving habits, brand preferences, and long-term ownership plans. In the right situation, these plans can make life easier and cut down on future service costs.

You Drive More Than Average

If you log more miles than the typical 13,500 per year, a prepaid plan could save you money over time by covering services that will come up more frequently. Frequent driving means more wear and tear, and if you stick to the maintenance schedule, it could easily pay for itself.

You Stick With the Same Brand

Drivers who plan to service their vehicle at a dealership of the same brand may benefit from factory-backed plans. These are often transferable and honored at any authorized dealer nationwide, which adds flexibility if you move or travel frequently.

You Prefer Predictability

For budget-conscious buyers, the ability to prepay for routine services can help avoid surprise expenses later. You lock in today’s pricing and avoid potential increases in labor or parts costs down the road.

The Math Works in Your Favor

Sometimes, the value is clear—especially if the total cost of the plan is lower than what you’d pay for each individual service. Ask the dealership for a breakdown of what’s included and compare that against local service rates.

When You Should Skip Buying Prepaid Maintenance

Prepaid maintenance plans aren’t always a money-saver—there are plenty of situations where they don’t make financial sense. Some drivers end up paying for services they don’t need or encounter restrictions that make the plan inconvenient to use. In these cases, paying as you go or choosing a different service option may be the smarter move. Before signing, it’s important to recognize when a plan might actually work against you rather than for you.

You Drive Less Than Average

If your annual mileage is far below average, you may not need services as often. That means you could end up paying for maintenance you don’t use before the plan expires.

You Have a Trusted Mechanic

Many car owners prefer to take their vehicle to an independent mechanic rather than a dealership if that sounds like you, a dealer-based prepaid plan probably won’t offer any real benefit—especially if it restricts you to one location.

You’re Rolling It Into Your Loan

Bundling the plan into your auto loan may seem convenient, but it means paying interest on the cost of the plan. Over time, that added interest can wipe out any savings the plan offered initially.

The Plan Isn’t Discounted

Prepaid maintenance plans should offer a discount over paying for services individually. If the dealership won’t negotiate the price, or if there’s no meaningful cost difference, there’s little incentive to buy one.

What’s Typically Covered (and What’s Not)

Not all prepaid maintenance plans cover the same services, and this is where many buyers get confused. Some plans only take care of basic factory-recommended maintenance, while others include a few extra items to add perceived value. However, many wear-and-tear components are still excluded, which can lead to unexpected out-of-pocket costs. To understand the actual value of any plan, it’s essential to know precisely what is included—and what isn’t—before you buy.

Prepaid maintenance usually covers:

• Oil and filter changes
• Tire rotations
• Multi-point inspections
• Fluid top-offs
• Cabin and engine air filter replacement

However, it generally doesn’t include wear-and-tear items like:

• Brake pads and rotors
• Tires
• Windshield wipers
• Battery replacement

Always read the fine print so you’re clear on what is and isn’t included.

Manufacturer Plans: A Quick Comparison

Here’s a brief overview of what some automakers offer with their prepaid or scheduled maintenance plans:

• Toyota – Standard 2 years / 25,000 miles included; extended prepaid plans available
• BMW – 3 years / 36,000 miles included; extended plans cover items like brake pads and wipers
• Audi – 3 years / 30,000 miles included for 2026 models; upgrades available to 120,000 miles
• Nissan – 2 years / 24,000 miles for basic services; Security+Plus plan includes broader coverage
• Ford – Offers a “Premium Maintenance” plan with scheduled services and selected wear‑item coverage
• Chevrolet – Two prepaid maintenance tiers covering oil changes, tire rotations, inspections, and additional services in the “Plus” version
• Hyundai – Provides complimentary factory‑scheduled maintenance for 3 years / 36,000 miles on many new vehicles

What to Do Before You Buy

1. Compare Costs

Ask for a detailed list of what services are covered and when they’re due. Then compare that to what local shops or the dealer charge for those same services. If the prepaid price is lower, it may be worth considering.

2. Check for Restrictions

Some plans are only valid at the dealership where you purchased the vehicle. Others are brand-specific but can be used at any franchise. Be sure you understand any geographic or provider limitations.

3. Ask About Transferability

If you plan to sell your car before the plan expires, ask if it can be transferred to the new owner. Transferable plans can also add resale value.

4. Avoid Paying Interest

If possible, pay for the plan separately rather than rolling it into your auto loan. You’ll avoid extra costs and keep the value intact.

5. Don’t Be Pressured

Dealers may push hard to sell these plans during the final paperwork, but you don’t have to buy immediately. Most plans can be added later—often at a better negotiated price.

Is a Prepaid Maintenance Plan Right for You?

A prepaid maintenance plan can be a wise investment for some drivers, but unnecessary for others. If you’re someone who drives a lot, prefers the dealership for service, and wants predictable maintenance costs, it might be worth it—especially if you can get a discount. But if you’re a light driver or loyal to your local mechanic, the savings may not be there.

The key is to ask questions, run the numbers, and make sure the plan fits your needs—not the dealership’s sales goals.