The Value of Free Maintenance Offers on New Cars
Most maintenance plans for nonluxury brands are more sizzle than steak. New cars don't need much upkeep.
General Motors’ announcement last summer that it would offer two years of free maintenance for its 2014 models expanded the field of brands that add regular maintenance to the factory warranty. The word free carries serious marketing clout. But if you’re cross-shopping models from different brands, how much should a free maintenance program factor into your decision?
That depends on the details of each plan. Most maintenance plans for nonluxury brands are more sizzle than steak: They cover most of your car’s maintenance needs for a while. But in the first couple of years, new cars don’t need much upkeep—generally oil changes and tire rotations. That may be worth only a few hundred dollars. Free maintenance on a luxury brand, however, can add up to serious bucks.
Mainstream makes. The promise of free service on a Toyota, Volkswagen or Chevrolet might tempt you away from a Honda or Ford, which don’t offer maintenance programs. But a rebate or bigger discount on a competing brand that doesn’t offer free service might more than make up for your maintenance “savings.” And those savings may not add up to much anyway. For example, Toyota offers free maintenance on its vehicles (including Scion models but not Lexus) for two years or 25,000 miles, whichever comes first. For the Toyota Camry, the service guide recommends an oil change every 10,000 miles, tire rotations every 5,000 miles and a multiple-point inspection at each service interval. Over 25,000 miles, covered maintenance would cost just over $300, according to Vincentric, an automotive-data firm.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The other programs from nonluxury carmakers have similar terms. GM’s will cover 2014 Chevrolet, Buick and GMC models for two years or 24,000 miles. Volkswagen started offering free maintenance for three years or 36,000 miles on 2009 models, but soon after GM announced its program, Volkswagen cut its free maintenance for 2014 models to two years or 24,000 miles.
Luxury brands. The value equation shifts for luxury buyers. Service costs add up fast—oil changes can run $100—and the programs tend to be more comprehensive and cover more miles. “There’s more benefit for a luxury buyer,” says Alec Gutierrez, senior analyst for Kelley Blue Book. If you’re cross-shopping, say, an Audi or Mercedes-Benz without free maintenance with a BMW that has free service, he says, “BMW’s plan could definitely sway you.”
BMW’s four-year or 50,000-mile maintenance plan includes not only service visits but also replacement of wear-and-tear items, such as wiper blades and brake pads and discs (likely needed around year three or four). Over 50,000 miles, maintenance on a 5-series sedan adds up to $2,000, according to Vincentric. BMW’s sister brand, Mini, offers the same coverage on its cars for three years or 36,000 miles. Hyundai has similar coverage on its top-of-the-line Equus for five years or 60,000 miles. Even with the best programs, you’re on your own if you need new tires.
Among other luxury makes, Cadillac covers basic maintenance (no wear-and-tear items) for four years or 50,000 miles. Current Lincoln models have the same coverage, but Lincoln will cut the offer to two years or 24,000 miles for its 2014 vehicles. Volvo covers three years or 36,000 miles, and Jaguar covers only the XK, for four years or 50,000 miles.
The best way to shop for new-car values is to compare long-term ownership costs. You can find Vincentric’s five-year ownership-cost estimates for hundreds of models at www.nadaguides.com/cars/cost-to-own. The value of free programs will be reflected in the overall maintenance cost.
Ask Jessica a question at janderson@kiplinger.com, or follow her on Facebook or Twitter at jandersondrives.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
-
Stock Market Today: The Dow Leads an Up Day for Stocks
Boeing, American Express and Nike were the best Dow stocks to close out the week.
By Karee Venema Published
-
Black Friday Deals: Are They Still Worth It in 2024?
Is Black Friday still the best day for deals? We share top tips for smart holiday shopping.
By Jacob Wolinsky Published
-
Ford Recalls 45,000 Cars Over Faulty Door Latches
The Ford recall follows its 2020 recall for the same issue. Here's what to know.
By Jamie Feldman Published
-
UAW, Ford Reach Tentative Deal As GM, Stellantis Strike Continues
UAW and Ford's proposed agreement must be approved by union membership but workers can return to before that.
By Joey Solitro Published
-
Gas-Saving Tips That Actually Work
These are gas-saving tips that will actually work for you and your car this year.
By David Muhlbaum Last updated
-
Want to Lease an EV? There's a Tax Credit 'Loophole' for That
Tax Credits If you are deciding whether to lease or buy a car, here's what you need to know about the EV lease tax credit.
By Kelley R. Taylor Last updated
-
Ford and Honda Recall Nearly 2 Million Vehicles. Is Yours Affected?
Ford and Honda have recalled models including the popular F-150, CR-V and Accord for issues with brakes, wipers and more.
By Ben Demers Published
-
Top 10 Electric Cars in the US — Most Popular EVs
Electric car sales continue to climb. We list the top-selling EVs in the U.S. Who knows, you might be driving one in years to come.
By Ellen Kennedy Last updated
-
Will the Gas Engine Soon Be Obsolete?
As the popularity of electric vehicles grows, what will happen to the gas engine?
By Rivan V. Stinson Published
-
Car Buying in a Topsy-Turvy Market
You need a new car? Good luck with that! What should you do? We've got some answers.
By Katherine Reynolds Lewis Last updated