Is This A Good Deal?

[bristolmotorspeedway]

The dealer I bought my car from has written with an offer to buy a Service Plan for the first 3 services up to and including the 30k mile one. The total cost for all 3 will be £431, and the cost can even be spread over 24 months, interest free.

The car is a 2.2 diesel Avensis.

I'd be interested to know what existing owners have paid for their services to guage whether this is a good deal or not - it certainly seems so.

Cheers for any advice you can share....

[hobbster]

Hi bristolmotorspeedway,

I got offered the same service plan by my dealer. I rang to ask questions and each time I couldn't find a catch. it's a much better idea to spread the service costs of the next three services, at todays prices. Of course you're not paying for wear and tear items like tyres and brakes, but with the service already paid for the cost isn't a shock. I think the only stipulation from the dealer was that you kept within the mileage specified or at least booked a service within the mileage. The reason I think that is because my quote seemed to depend on how many miles I did in year. I went for the lowest - the usual 10,000 a year and I pay twenty something pounds a month on my '55 avensis 2.0 diesel. I think the only way to be cheaper is to have your car serviced independently (non-toyota). Personally while the warranty is still active, I prefer to go to Mr.T.

Hope this helps, and i'd be interested to know if anyone has had a problem with the plan.

Hobbster

[Shoto]

Hi Bristol,

Might be worth asking your dealer how much he would knock off for an up-front cash payment. One of our company accountants explained that 0% interest means you are really paying an increased capital price and the interest is hidden. The dealer will probably re-finance the deal with some kind of finance company who will give the dealer an up-front payment that is less than the £431 you have been quoted. The alleged £431 cost with 0% interest over 24 months just means that £431 is more than the real capital cost.

Why not ask the dealer how this is financed? Why should he care who pays the real (lower) up-front capital payment? Might save you a few quid? ;)

[bristolmotorspeedway]

Thanks to both Hobbster and Shoto.

Shoto, think I will try your 'haggling' suggestion. I wasn't intending to take up the 0% offer anyway, as the car will need a fourth service by 24 months.