Service Plan Advice

[monomcfc]

Hi,

I am due to collect my new W205 tomorrow and the sales guy mentioned the service plan to me when I placed my order and expect he will bring this up tomorrow. I would like some advice if possible...

My PCP contract is for 30 months, but the service plans available are for 12, 24, 36 months only, so 24 months and I will come up short, 36 months and I will have over paid...

I don't plan to keep the car at the end of the lease and have read in the T&Cs that it MUST be serviced at a main dealership otherwise I will face horrendous charges when handing it back...

Some questions:

Could I take out the 24 month package (£30p/m) a couple of months before the first service and then cancel it just after the 2nd service? If my maths are correct (they probably wont be!) assuming I took out the plan 3 months before the 1st service and terminated immediately after the 2nd service, i would only have to pay 15 x £30 = £450 - which surely has to be cheaper than paying for the services individually and not on the Service Plan?

Would I get a refund or simply just not have to pay any more monthly payments?

Sorry for the long winded post, I just want to be prepared tomorrow when I pick it up.

Thanks

 

[Giantvanman]

Maybe I am missing something but if the service plan cost say £480 per annum, that would equate to £40pcm. I am not sure you can just join in and leave when it suits because the service plan policy has an over all premium or cost price………all the monthly payments are is an easy way to pay monthly rather than by paying for the plan in one hit. What you have to consider is whether or not your mileage will be such as to warrant a service plan- low mileage users very rarely see any benefit from these schemes.

 

[geraldrobins]

What is your anticipated annual mileage? If its less than 15000 you only need 2 services at 12 and 24 months. Unless I've missed something? I'd guess the 1st 2 services will have a total cost of £700, but this can vary with dealer and area.

 

[gl boy]

I have The service plans over a 3 year period and saved money after the second service as all gearbox oil and brake fluid where changed and this alone would of cost as much as 1 service ., I'd recommended the service plan , BUT YOU DONT HAVE TO TAKE IT OUT THERE AND THEN !!!byou can take it out the day your car is serviced !!!! Be best to talk to the service guys who will give you more advice and help ,,, regards Jon

 

[gl boy]

Also forgotten to say , you can cancel the plan at any time and they will work out what has been spent either way , and you may get a refund or may have to pay the difference of the costs ,,, again regards job

 

[monomcfc]

Thanks for the replies....

My contracted mileage is 10k per year so I cant do more than 25k without being charged extra.

The sales guy said that the first service would be approx £300 but didnt specify a price for service #2

Here is the pricing matrix: Mercedes-Benz UK - Service Care - Rates

They do a 12 month for £60p/m so maybe thats where my plan fails...?

 

[Dryce]

Hi,
My PCP contract is for 30 months, but the service plans available are for 12, 24, 36 months only, so 24 months and I will come up short, 36 months and I will have over paid...

Shirley you only need 24 months as there are only going to be two annual services due. One by the end of month 12 and one by the end of month 24?

After that you are not responsible for the next annual service so why do you even need to consider more than 24 months?

 

[monomcfc]

Good point...!

I have been mulling the other offerings (GAP, Alloy protection etc..) over in my head but would have to take them over 3 years as if I did it over 2 years then that leaves me massively exposed for the last 6 months of the deal. I have incorrectly rolled the service plan into this train of thought too!

So I suppose that takes me a step closer to an answer its going to cost me £720 for the 2 years...

Assuming the 1st service does cost £300 - Is a 2nd service likely to cost more than £420 (at a main dealer)?

 

[alzieboy]

Maybe I am missing something but if the service plan cost say £480 per annum, that would equate to £40pcm. I am not sure you can just join in and leave when it suits because the service plan policy has an over all premium or cost price………all the monthly payments are is an easy way to pay monthly rather than by paying for the plan in one hit. What you have to consider is whether or not your mileage will be such as to warrant a service plan- low mileage users very rarely see any benefit from these schemes.

I didn't think that yearly mileage would factor in on a service agreement as the terms say " mileage or yearly "

 

[S205-FTW]

I have been mulling the other offerings (GAP, Alloy protection etc..)

Can't offer any guidance on the service package but don't buy GAP from MB! You will get fleeced.

Go to a specialist like Frank Pickles - will cost you less than half what MB would charge. 3 years Replacement GAP on an S205 cost me £152. Policy underwritten by Ageas. MB quoted me £500!

Same with the alloy policy. I'm sure someone in the Insurance section can offer a personal recommendation.

 

[S205-FTW]

I found it difficult to get actual service costs for an A and B service from my local dealer. When I called up and mentioned servicing for a new car, I got put through to a salesperson who tried to flog me the package. When asking how much the individual services would cost, I got a lot given a range rather than an actual price. Also, lots to try and scare the punter "Prices might go up you know" etc...

MB service policies are a rip off compared to other marques. For comparison, Land Rover quoted me £500 for 3 years service package for an Evoque.

 

[Dryce]

I have been mulling the other offerings (GAP, Alloy protection etc..) over in my head but would have to take them over 3 years

GAP is usually horribly overpriced unless you buy it independently. Even then it's not really good value for money. (And that's official - the overall industry stats are GAP is reported to pay out a very small % of what is actually collected in premiums).

Beware the small print on the alloy protection etc. Classically the alloy policies are limited in the damage they cover, and may require that you get damage repaired within so many days and that you pay an excess. (The effect of this is to make it potentially less economic than just waiting and getting several scuffs done at the same time).

 

[Rory]

So I suppose that takes me a step closer to an answer its going to cost me £720 for the 2 years...

Assuming the 1st service does cost £300 - Is a 2nd service likely to cost more than £420 (at a main dealer)?

At list prices it'll be there or thereabouts.

I'm not a fan of what Mercedes is doing here - as others have said, service packages from other manaufactures are A LOT lower cost. All Mercedes is doing is taking the list prices and spreading the cost the plan. The other problem with this is it takes away the dealer's incentive to compete with each other.

The time the plan runs for is a bit irrelevant. You're buying a number of services. You need 2 and can pay for them over 1 or 2 years.

Much as I don't like them, in your position (you've got to use a dealer) you might as well just go for it. You can forget about it then and not worry about shopping around for pricing when the car needs servicing, and whether the dealer is going to rip you off by suggesting other work.

 

[Dryce]

MB service policies are a rip off compared to other marques.

A cynic might think there was a deilberate strategy at work

1) Sell lots of cars on discounted PCP and contract hire with annual low mileage limits

2) Reduce the time interval between services down to 1 year (it used to be two).

3) Mandate dealer servicing where possible in these agreements

4) Jack up service prices

5) Offer monthly installments

 

[st13phil]

I'm not a fan of what Mercedes is doing here - as others have said, service packages from other manaufactures are A LOT lower cost. All Mercedes is doing is taking the list prices and spreading the cost the plan. The other problem with this is it takes away the dealer's incentive to compete with each other.

I don't think the service plans are cost-effective on a new car over 2 years, they're marginal over three, and you probably start to gain at year four. However, they can make financial sense if you buy (say) a 2 year-old car and plan to run it for a couple of years as there tend to be lots of costly additional items at the third and fourth service.

Frankly, with a new car I'd put the £30 a month in a tin on the mantelpiece and pay for services when they're due. I'd expect to have a modest sum left over in the tin after the second service too.

 

[Rory]

I don't think the service plans are cost-effective on a new car over 2 years,

The thing is, it rather depends on what the dealer quotes you for servicing and how much you're prepared to haggle and shop around.

Also, the dealers are more and more trying (I wonder if being leaned on?) to stick to the MyService pricing which adds £50 for a courtesy car, or collection and delivery, and £20 (I think) if you want a waiting appointment.

We saw a thread the other day where someone was quoted £700 for a service at 2yrs old. OK, it must be wrong, but if you're not switched on it's hard to argue against. There's currently a right mess (again) about when the ATF should be changed - looks like it's generally gone to 5yrs but I wonder how many dealers will try it on earlier with cash paying customers - it was 31K/2yrs on some cars.

To repeat my earlier comments, much as I hate the idea and it annoys me that MB doesn't offer any incentive to commit to Servicecare, it's probably less painful to take it and the £30/mth just gets lost in the noise.

 

[meeeb]

I have The service plans over a 3 year period and saved money after the second service as all gearbox oil and brake fluid where changed and this alone would of cost as much as 1 service ., I'd recommended the service plan , BUT YOU DONT HAVE TO TAKE IT OUT THERE AND THEN !!!byou can take it out the day your car is serviced !!!! Be best to talk to the service guys who will give you more advice and help ,,, regards Jon

If my memory serves me correctly, when I took out a four year plan a couple of years ago, the plan had to be in operation for a period of time before the service; I believe 3 months.

Also forgotten to say , you can cancel the plan at any time and they will work out what has been spent either way , and you may get a refund or may have to pay the difference of the costs ,,, again regards job

Plus an 'administration' fee, but the figure for that was buried in the quote for early severence when I enquired a couple of months ago.

 

[johns E350]

If my memory serves me correctly, when I took out a four year plan a couple of years ago, the plan had to be in operation for a period of time before the service; I believe 3 months.


I have taken a service plan out at the time of service before. However I have not got a service plan on my present car and from what Mercedes have quoted me for my B service will be better off than if I had. So for me it is better with no service plan at £37.00 a month B service cost at time of service £326.00 E Class coupe 350CDI and we all know an A service will be less

 

[st13phil]

The thing is, it rather depends on what the dealer quotes you for servicing and how much you're prepared to haggle and shop around.

Also, the dealers are more and more trying (I wonder if being leaned on?) to stick to the MyService pricing which adds £50 for a courtesy car, or collection and delivery, and £20 (I think) if you want a waiting appointment.

I agree that it's important to be willing to take your business elsewhere if necessary to get the price you're happy with.

As far as the charges for courtesy car or collect and delivery go, I have a two word answer for anyone who thinks I'll pay it: get stuffed. I haven't met a dealer yet who will turn down the opportunity to earn £250+ for a routine service if I refuse to pay for a courtesy car.

 

[Piff]

The thing is, it rather depends on what the dealer quotes you for servicing and how much you're prepared to haggle and shop around.

Also, the dealers are more and more trying (I wonder if being leaned on?) to stick to the MyService pricing which adds £50 for a courtesy car, or collection and delivery, and £20 (I think) if you want a waiting appointment.

Currently about to have 2nd service on an SLK and found that my nearest 2 dealers are quoting exactly the same price, which coincidently is the same price as on the MB web site

Is this price fixing legal?