Service plans - is there any advantage?

GDB2222

I'm looking at buying a new car, and I have been offered a service plan. I'm trying to figures out if there's any point? Being able to pay in monthly instalments might suit some people, but it's of no benefit to me.  Are there any other benefits I haven't spotted?

Ayr_Rage

The price is fixed therefore when the main stealers jack up their prices you are not affected.

I get my 3 services, 1 MOT and 2 years Toyota assistance for what was almost exactly the sum of those individual elements at the time of purchase, paid monthly.

Toyota have increased individual service prices twice since I took out my plan so if I was paying as I go then overall it would be more expensive.

Isthisforreal99

As above, only real benefit is fixing your price, but in no circumstances add it any finance.

Mildly_Miffed

GDB2222 said:

I'm looking at buying a new car, and I have been offered a service plan. I'm trying to figures out if there's any point? Being able to pay in monthly instalments might suit some people, but it's of no benefit to me.  Are there any other benefits I haven't spotted?

Is the plan valid at all dealer of that marque? Or just at that particular dealer chain...?

Because if the latter, then there's your answer... Tie-in.

In return, there might be a minor discount compared to full retail.
(Bet it won't be refundable or transferable if circumstances change and you sell the car, or it gets written off, or...)

dnpark38

Taking one ties you down to that dealer for a number of years, bad if you discover you do not like the dealer after purchase.

kinger101

The salesman gets a nicer commission.

Ayr_Rage

dnpark38 said:

Taking one ties you down to that dealer for a number of years, bad if you discover you do not like the dealer after purchase.

Not necessarily the case, the Toyota UK plan administered by Emac allows the vehicle to be serviced at any Toyota dealer.

marlot

What happens if you write off the car?  Or sell it?
Is the service plan valid at any main dealer (for the marque) or only the one?
What happens if your local dealer changes owner?  Or changes the brand of cars they sell?

Several of these have happened to me (including the last two).  So I much prefer to pay as I go.

Ayr_Rage

marlot said:

What happens if you write off the car?  Or sell it?
Is the service plan valid at any main dealer (for the marque) or only the one?
What happens if your local dealer changes owner?  Or changes the brand of cars they sell?

Several of these have happened to me (including the last two).  So I much prefer to pay as I go.

For the Toyota plan you can cancel and get a refund, paying only for the services you have used minus a small admin fee.

Toyota plan is valid at any Toyota service outlet.

Don't buy the plan from the dealer, get it from the manufacturer.

EssexExile

Since the cheap services I paid for when I bought my Volvo ran out after 5 years I've used the dealer's service plan. I went to book this years service only to find that Volvo ceased their contract with no notice a week ago. I'll still get the service done but won't get any of the usual extras, like a year's breakdown cover and software updates. So next time it's back to the garage at the end of the road for servicing.

Frozen_up_north

Carefully check any/all extras offered by dealers with new cars. I got £4K knocked off the price without any haggling, then the salesman added on wheel/alloy insurance, 2 services and “Supagard” paint/fabric protection. These additions were supposed to be free, but in fact were deducted from the £4K discount.