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We live in an era when monthly direct debit is fast becoming the norm. It can have its benefits and its downsides as well. Of course, the benefits far outweigh the negatives in that we only need to consider the yearly APR if applicable. Could the new fixed-price servicing that appears to be slowly creeping into society prove to be beneficial?

Some of the things we'd quite happily pay for on a monthly basis have been things like mobile phones, landline, internet service provider, electricity, gas, water and maybe a whole lot more. It helps us to ensure that we balance our budgets and pay on time.  Up until now, the thought of paying a fixed-price servicing has probably not even entered most of our minds. Now however, it is not only being offered  to us with  new cars, but also used cars as well.

Could a fixed-priced servicing plan be beneficial?

All manufacturers monthly fixed-priced servicing plans vary in cost and some will only accept cars up to five years old. For example, Audi only offer a plan to keep 3 to 5 year old cars in good check. My car is a 6 year old Audi, so for the sake of one year, I don't stand a chance of joining their scheme. There plans cost £299 for two consecutive services and it covers cars up to 2.0 litres excluding hybrids.

Volkswagen offers a fixed-priced servicing plan for cars with mileage up to 40,000. Depending upon the plan, you pay from £15.99 with 18 month payments, £15.99 with 24 month payments and £15.99 with 36 month payments. Plans are available for every type of vehicle.

SEAT offer excellent fixed price servicing plans; for any new SEAT model up to three years or 30,000 miles, payments are £19.99 per month for 24 months. However, they also offer a plan for 3 – 8 year old used cars, with this plan you will pay £19.99 per month for 18 months, this will give you 2 years or 20,000 miles coverage.

Please bear in mind that prices and monthly payments were taken at the time of writing this article. Furthermore, most dealerships offer discounts periodically throughout the year. If you buy a relatively new car from a dealer, you could save on servicing costs. Please bear in mind that many other dealers offer fixed priced servicing, give your dealership a quick call to find out their prices.

Advantages of fixed price servicing

The advantages of using fixed price servicing are:

  • You can spread the cost into small monthly payments.
  • At the time of signing up to your package the payments are fixed.
  • Inflation will not change your monthly payments.
  • Your service book will be stamped by your dealership, this will maintain your cars re-sale price.
  • You can be reassured that you will be getting a high quality service by fully trained dealer technicians.
  • The price covers the dealer's recommended servicings, labour and genuine approved parts.

*The advantages listed here are intended as a guide, please check your manufacturer's plans.

It makes financial sense to use the dealership offers, there is nothing to stop new and used car owners signing up. The scheme also reassures dealers that their customers will return, therefore it works for us and for them.