Should you buy a new car with a free oil change?

Hyundai Ends Free Maintenance: A Costly Shift

10/09/2018

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For many car buyers, the allure of a new vehicle is often sweetened by enticing perks and complimentary services. Among these, a free maintenance plan, covering essential services like oil changes and tire rotations, has been a significant draw. However, for those who have come to appreciate this particular benefit, there's a shift on the horizon. Hyundai, a manufacturer that has offered a generous three-year complimentary maintenance program, is set to discontinue this customer-focused initiative. This change marks a significant pivot in their customer care strategy, moving from a 'freebie' model to a more structured, paid-for approach. The implications of this decision are considerable for both potential buyers and the wider automotive market, signalling a potential trend towards less included after-sales support.

Does Hyundai Motor America offer a complimentary maintenance program?
Rates and reimbursements disclosed are subject to change without notice. Hyundai Motor America reserves the right to amend, alter, or cancel this program, including its terms, at any time. Keeping your new Hyundai running at its best is now easier than ever with the new Complimentary Maintenance program.
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The End of an Era: Hyundai's Free Maintenance Program

Hyundai's complimentary maintenance program, initially rolled out for the 2020 model year in the United States, has been a key selling point for new car purchases. This program typically covered essential services for a period of three years or up to 36,000 miles, whichever came first. The included services generally comprised of regular oil changes, oil filter replacements, tyre rotations, and multi-point inspections. The primary aim was to ease new owners into the responsibilities of car ownership by removing the initial financial burden of routine servicing. This made budgeting predictable and provided peace of mind, knowing that these fundamental upkeep tasks were already taken care of. It was a valuable tool for fostering customer loyalty and ensuring vehicles were maintained according to manufacturer standards.

Why the Change? Unpacking Hyundai's Decision

The discontinuation of the free maintenance program has been attributed to escalating costs. According to internal bulletins sent to dealerships, Hyundai stated that the program's cost had grown to 'unsupportable levels.' This suggests that the financial outlay for the manufacturer in providing these complimentary services had become unsustainable in the long run. While the exact figures are not public, it's likely that the uptake of the program, combined with the cost of parts and labour at dealerships, led to a significant financial strain. As the automotive industry navigates a period of rapid technological advancement and evolving market dynamics, manufacturers are constantly re-evaluating their business models and cost structures. Shifting from a complimentary service to a pre-paid model allows Hyundai to better manage these costs and potentially generate revenue from after-sales services.

What's Replacing the Freebies? Pre-Paid Maintenance Tiers

Hyundai is not leaving its customers entirely without maintenance support. Instead, they are introducing a new Pre-Paid Maintenance Program, which will be available in two distinct tiers: 'Pre-Paid Basic Maintenance' and 'Pre-Paid Scheduled Maintenance.'

The Pre-Paid Basic Maintenance plan is expected to cover the core essentials, likely mirroring the most frequent services. This would typically include oil changes and tyre rotations. These are the services most commonly required by drivers and form the bedrock of regular vehicle upkeep.

The Pre-Paid Scheduled Maintenance plan will offer a more comprehensive package. This tier is designed to encompass all the service items recommended in the owner's manual. This means it will cover not only oil changes and tyre rotations but also other scheduled maintenance tasks, such as fluid checks and replacements, filter changes (air, cabin, fuel), spark plug replacements, and other inspections at specific mileage or time intervals. The exact scope of this plan will be detailed in the owner's manual, ensuring drivers know exactly what is covered.

Pricing and Availability: What to Expect

While the new pre-paid plans are set to replace the free maintenance, specific pricing details for each tier are yet to be announced. Hyundai has indicated that customers who choose to purchase one of these plans will be offered a discount. This incentive aims to encourage owners to opt for the manufacturer-backed plans rather than seeking services elsewhere. The exact nature and extent of this discount will be a crucial factor in determining the attractiveness of these new offerings.

It's important to note that the free maintenance program will still apply to all 2025 model year Hyundai vehicles. Therefore, any prospective buyer who wishes to take advantage of the complimentary servicing would be well-advised to purchase a 2025 model before the new policy comes into effect for the 2026 model year. Hyundai will continue to honour the terms of the free plan for all existing eligible vehicles until their respective three-year terms expire.

The Broader Impact: A Trend in the Automotive Industry?

Hyundai's decision to end its free maintenance program could be indicative of a wider trend within the automotive industry. As manufacturers face increasing costs associated with research and development for new technologies, such as electric vehicles and advanced driver-assistance systems, they may be looking for ways to streamline expenses and generate revenue from other areas. Offering complimentary services has been a successful customer acquisition and retention strategy, but the financial burden can become substantial over time.

The shift to pre-paid maintenance plans offers several advantages for manufacturers. Firstly, it guarantees a predictable stream of revenue for dealerships and service centres, ensuring consistent work and utilisation of their facilities. Secondly, it helps to keep customers within the manufacturer's approved service network, rather than losing them to independent garages or third-party repair shops. This allows manufacturers to maintain control over the quality of service and the use of genuine parts, which is crucial for brand reputation and long-term vehicle health.

For consumers, this change means a more upfront approach to the costs of car ownership. While the initial purchase price might remain competitive, the ongoing cost of maintenance will need to be factored in more directly. The value proposition of a new car will now depend more heavily on the purchase price, fuel efficiency, reliability, and the pricing and perceived value of the new pre-paid maintenance plans. Buyers will need to carefully compare the cost of these plans against the potential cost of servicing at independent garages.

Making the Right Choice: Should You Buy a New Hyundai Now?

The decision of whether to buy a new Hyundai now, particularly with the looming end of the free maintenance program, depends on individual priorities and circumstances.

  • For those who highly value included maintenance: If the idea of having your routine servicing costs covered for the first three years is a significant factor in your purchasing decision, then securing a 2025 Hyundai model before the program ends is the most logical step. This allows you to lock in the benefit of free servicing for the duration of the program.
  • For those comfortable with pre-paid plans: If you are willing to pay for maintenance and are looking for a structured, potentially cost-saving plan, the new pre-paid options might be suitable. You will need to wait for the pricing details to be released to assess the value proposition. The discount offered on these plans could make them an attractive alternative to paying for services as they become due.
  • For budget-conscious buyers: It's essential to research the pricing of the pre-paid plans once they are announced and compare them with the estimated costs of servicing a Hyundai at independent mechanics. In some cases, independent servicing might prove to be more economical, especially if your car requires minimal maintenance during the first few years.

Frequently Asked Questions

Q1: When exactly is Hyundai discontinuing its free maintenance program?
The program will not continue with the 2026 model year vehicles. It will remain in effect for all 2025 model year vehicles purchased.

Q2: What services were covered under the old free maintenance program?
The program typically covered oil changes, oil filters, tire rotations, and multi-point inspections.

Q3: What will replace the free maintenance program?
Hyundai is introducing two pre-paid maintenance tiers: Pre-Paid Basic Maintenance (likely oil changes and tire rotations) and Pre-Paid Scheduled Maintenance (covering all manufacturer-recommended services).

Q4: Will I still get free maintenance if I bought a Hyundai before the 2025 model year?
Yes, Hyundai will continue to honour the free maintenance plan for all existing eligible models purchased until their respective three-year terms are completed.

Q5: When will pricing for the new pre-paid plans be announced?
Pricing details are expected to be announced at a later date, closer to the launch of the new program for the 2026 model year.

Q6: Is it worth buying a 2025 Hyundai to get the free maintenance?
This depends on your personal preference. If free maintenance is a major factor for you, then yes, buying a 2025 model is advisable. If you are comfortable paying for maintenance or can find cheaper independent servicing, you might not need to rush.

In conclusion, Hyundai's move away from complimentary maintenance marks a significant shift in its customer service strategy. While the free program offered considerable value to buyers, the company cites unsustainable costs as the reason for its discontinuation. The introduction of pre-paid maintenance plans, while offering a structured approach to servicing, shifts the financial responsibility back to the consumer. Prospective buyers should carefully consider their priorities and weigh the benefits of purchasing a 2025 model with free maintenance against the future costs and offerings of the new pre-paid plans.

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