The oil mentioned on this post is the engine oil. Engine oil lubricates all the moving parts in the engine so that there is not much wear and it makes the engine run smooth. The oil also helps cool the inside of the engine where water cannot be circulated.
You need to change oil becuase it gets dirty and it looses its ability to lubricate the inside of your engine properly. There are other reasons for changing oil but we will leave it at that.
Some people change their oil more regurarly because they live in dusty regions and the oil gets dirty sooner. Others, like myself, change the oil more regularly than what the manufacturer recommends because we drive our cars a bit harder and it gives us peace of mind. Volkswagen recommends that the oil be changed once you have travelled 15,000kms. Part of the reason they dont recommend to do it earlier is because it will cost the owner more to maintain the car. When people, who dont know much about cars, want to buy a new car they may look at running costs of that model/make of car. If the service/oil change is done more regurarly then the running cost of the car would be higher and the potential buyer may not purchase the car because of the higher maintenance costs compared to competitors.
If you dont change the oil the engine will start to run a bit more rough, your fuel consumption will probably increase, your engine would wear out sooner and you will eventually damage the engine to the point where the car is no longer driveable.
Having said all that I personally know someone who bought a brand new car and didnt change the oil until 60,000 kms.
She didnt know you had to get the car serviced
She sold the car not long after that and it was still running fine.
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