are car service plans and warranties worth it from Car Shop

sinofrench26

So I bought a used car from Carshop, Audi A3 2016 1.6 diesel.  Its been nearly 3 months and so far no problems.  However, on the day of collection they told me it had no service history.  But had a major service with them.
I received a call from them trying to sell me a service plan and warranty.
This is what he said "Our service plan prior to the 1st October 2020 was a fixed Price Service Package based on engine size which was already cheaper than a main dealer @ £17.99 per month over 36 months 0% Interest free total cost £640.44.

This includes 3 Services, 3 MOTs and 3 Health checks, a complimentary valet every time, and an engine oil flush on every service. We also only use Shell oil, none of the cheaper synthetic oils currently available on the market are used that some garages use to reduce costs.

Since 1st October we have a NEW 3 Year Manufacturer Recommended service package @ only £12.78 per month over 32 months totalling £368.36. This is currently under review due to the fact that the costs to us are considerable and this package currently has very little profit in it.

So major services tend to cost £180-200. But his deal is only for less than x3 years (32 months)

There warranty is 1 year - £572 2 years £799 and 3 years is £1020 it covers all parts, electrical and motor as has no limit on part costs etc.  there is also breakdown RAC cover as well included.  He recommended the 2 years coverage.  Then when I said Id think about about it.  He said that I should has deal runs out tomorrow and replaced a get system us expensive!

What do I do?

daveyjp

The service package appears to be a loan, the warranty is an insurance policy.

Both these should be offered in writing.  When you have the full policy documents in writing you can make an informed decision.

Remember tomorrow is end of the month, sales staff bonus time.

angrycrow

If you take the warranty be prepared to have any engine related problems refused due to the lack of service history on the vehicle. 

Grumpy_chap

The service plan looks cheap.  Are you near to the garage to go back there for service?
The warranty looks expensive.  As others noted, it may not cover much because of lack of service history.
Are you able to get one without the other, or only both together?

AdrianC

Service plans are merely a lock-in to keep you using them, even if you don't want to because you've lost confidence in them. You're paying up front for years of work, with a small discount to tempt you.

Aftermarket warranties are an insurance policy. They make money by taking in more in premiums than they pay out in claims - after taking account of commission, admin costs, tax etc etc etc. Basically, they're a gamble that YOUR car is going to be considerably less reliable, and considerably more expensive, than average.

sheslookinhot

Service plans can be much cheaper than paying for individual services at a main dealer. However, less so against service costs at good independent specialists. Cost each option up and decide yourself.

sinofrench26

Grumpy_chap said:

The service plan looks cheap.  Are you near to the garage to go back there for service?
To be honest Im not near the garage.  Its 20-25 mins drive away.  my local is 5 mins drive away.
The warranty looks expensive.  As others noted, it may not cover much because of lack of service history.
Car shop said it would be covered.
Are you able to get one without the other, or only both together?
I can buy one or the other or both

eamon

Don't do either option. Instead set up a savings plan yourself say £40 per month to cover annual service & MOT. After market warranties are seldom a good idea and you haven't even seen the T&C's. As for the service history you try an Audi dealer that is local  to you.

macman

So you agreed to buy a 4 year old car without first checking the service history?
The deal always 'expires tomorrow', this is the oldest sales trick around.

sinofrench26

macman said:

So you agreed to buy a 4 year old car without first checking the service history?
The deal always 'expires tomorrow', this is the oldest sales trick around.

No it stated with service history and by the time I sold my car and got there to pick it up. They dumped it on me no service history.  Course I complained. I received money off the car, and  spare key which should have come anyways. The complaints process was a nightmare.

woodchal

I purchased a 5 year plan from Honda with a new Jazz.  I need to sell the car for medical reasons and they are refusing to refund  the unused 3 year element.  I only received the T+C's 4 months after purchase and didn't feel I could object to no refund clause.
I never expected to become unfit to drive because I have kept my previous Hondas for more than 6 years each time.  However if I had been made aware of this condition at the time of purchase I would not have taken out the plan.  I think this falls foul of The Consumer Protection from Unfair Trading Regulations 2008 (known as the CPRs) Regulation 6 - I feel Honda made a Misleading omissions.  After 20 years as a loyal Honda customer I feel let down.

My advice - read the T+Cs carefully and think of all eventualities