Service plan

ryan121

I've been offered a service plan for £22 per month on a small car. When I looked at booking direct it was £140 for a full service and £209 for a major service.

Are service plans meant to be cheaper than just booking direct or is this normal? This is the first time I've dealt with this so wondering about peoples experiences.

AdrianC

They're just hoping you won't look too closely, and will think "Oooh, £22 is cheap!".

jimbo6977

Who's doing the offering?

A friend who works for a major car manufacturer told me I'd got it all wrong about these service plans - I thought they were a high-commission salesman's-dream rip-off, but apparently the canny manufacturers and dealer networks sell them at keen prices so that you come back to their premises at least once a year and give them the opportunity to sell you another new car.

Navigator123

£22 per month over 24 months equals £528.

2 years servicing costs £140 plus £209 equals £349.00.

So you pay for servicing when it is needed and take the wife out for a slap up meal with the £179.00 you have saved.

ryan121

jimbo6977 wrote: »

Who's doing the offering?

A friend who works for a major car manufacturer told me I'd got it all wrong about these service plans - I thought they were a high-commission salesman's-dream rip-off, but apparently the canny manufacturers and dealer networks sell them at keen prices so that you come back to their premises at least once a year and give them the opportunity to sell you another new car.

A hyundai dealership. I said I'll think about it and sort it when I collect the car. I'll have to ask if there is any benefit to getting a service plan. I just thought it usually worked out cheaper.

Yes I presumed it is to tie you in as well but not sure I want to be.

DoaM

Depends on who's offering the service plan. I know Vertu Motors (click for brands) have a dedicated group selling service plans - my brother works in that group. If you decline the dealership offer you'll get a call from the dedicated group and will be able to negotiate a much better price.

(One of their "selling points" is that the plan is easy monthly payments and means servicing costs are fixed for the period of the plan, irrespective of if service prices increase during the plan term).

foxy-stoat

DoaM wrote: »

(One of their "selling points" is that the plan is easy monthly payments

Love that - its just as easy to set up a standing order into another savings account.

EssexExile

I take out the service plan if it's a good deal, the last couple of cars it's been cheaper than paying for each service so I've taken it. I can't think why anyone would pay £22 a month for one though.

DoaM

foxy-stoat wrote: »

Love that - its just as easy to set up a standing order into another savings account.

Hence the " "

ryan121

EssexExile wrote: »

I take out the service plan if it's a good deal, the last couple of cars it's been cheaper than paying for each service so I've taken it. I can't think why anyone would pay £22 a month for one though.

Yes unless there is some benefit to me like discounts on repairs I don't think I'll bother.