I am trading in my Fabia 2 TDi 80 in ( cost me nothing in maintenance in the 3yrs Ive had it) for a new Montecarlo on Friday.

Can't wait to pick it up but hope weather improves so I get it back home ok.

I have the cash to pay the balance remaining after my trade in but the dealer has advised me that I could benefit from taking out finance to get the free servicing. I don't understand why but to get the finance they will give me £2,500 when I collect the car. I have been told that I need to make at least three payments before I can pay off the remainder but if I do this then ask for the settlement fee to repay in full it will cost me under £200. Having read the T&C's there is a £125 arrangement fee and £60 option to purchase fee to pay when you make the final payment so I am struggling to see how the interest over 3 months will only be £15.

Has anyone else looked into this and is it likely to save me any money as I am only likely to require two services in 3 years.

Help!

I did this in October with my Octy. T&Cs seem slightly different but I paid mine off more or less straight away but still kept the 3 years servicing- I had £500 contribution too and like yourself had the money to pay cash but am glad I didn't. check out the servicing options with the dealer as I've got mine on the fixed plan as I'll do less than 10k a year so it'll get 1st service at 12 months a minor, 2nd as a major at 24 months and last 1 at 36 months as a minor again, saving me circa £550. if you do more than 10K you will be on the variable service and the light will tell you when it'll need servicing but you'll prob only get 2 variable services but the cost of those is probs circa £500 too.

When I paid mine off it cost me about £70 in all

It seemed strange to me too, but was worth doing

Thanks for your response, its good to know that it does actually work out. I may just have to take a leap of faith and go for it although it goes against the grain to sign up to something I don't really understand. Alternatively I could take the two years prepaid service plan for £299.

Must admit I was a bit sceptical and was wondering what the catch was when my dealer recommended to me! Turned out there wasn't one (for me). If you need peace of mind I'd suggest you ask the dealer to go through it in detail before you commit. They probably love it as I'm guessing they get commission on the finance as well as being paid by Skoda for the services. I'm sure they'll explain it fully if you ask them but as above I was glad I did it. On the terms I got it was a no brainer

Best of luck

Ade

Thanks again

From what I understand of how it was explained to me by the dealer aslong as you wait for the service argeement to come through you can clear the finance off and still get the service pack.

Nice choice in car, really like the monte, and welcome to the site!

Thanks for that Charles lookalike ( just kidding I have heard of Charles Hawtrey - can't say I recall what he looks like though).

Did you ring Skoda finance yourself to repay early? The dealer is offering to do that for me after 3 months but if I can pay off before that I will do it myself. Still unsure why I have to have additional finance - in the form of a cheque for £2,500 that I don,t need. I have the balance and its more than 50% of the value of the car. I will have to get them to explain it again before I sign on the dotted tomorrow.