Finance - 2nd year warranty. Want to buy in cash

[Jakefabia22]

If I sign up for finance I get a second year warranty and two services.

 

but I feel like it's too good to be true. Is it? I want to buy in cash but getting another years warranty seems good but I also see lots of refusals for work ... Any experiences? I don't need the finance and don't fancy signing up for it

[Ootohere]

Do not then, negotiate a better purchase price.

Many sign up for finance, get a 2nd year warranty and 2 services, then very quickly settle the finance and keep the 'incentives'. 

The Sales People / Dealership are unhappy.

 

What are are the 2 services, 2 Fixed Oil & Inspection Services?   If you think this is worth it then fine, that is if all is done at the time due.

So if that is at 3 years are you paying for extras like brake fluid, or at 4 years spark plugs, or is that all in?

[Norton Ian]

I was going to buy my year old Kamiq with cash but salesman explained the deal you get with finance. Two services, one worth £199 and one £299. I opted for smallest amount I could have on finance over shortest time (18 months) so interest cost will be about £130. Seemed to be a no brainer to me. £500 worth of servicing for £130, less if you pay the loan off earlier. 

[Ootohere]

Good when it is explained that way.

But a service @ 3 years is just an Oil & Inspection Service with extended scope and should not be £299.

But then if they are going to be including the Brake Fluid change it could be, but still a ridiculous price.

 

The 2nd year service is not required if the car is just left on Variable / Flexible servicing and not changed to Fixed Servicing.

 

 

Edited 7 June, 2022 by roottoot

[Jakefabia22]

5Thanks for the responses guys. Im speaking to the sales guy today to tell him no to the silly expensive insurance things he offered but still not sure about the warranty thing. I don't want to really but at the same time I'm a new driver don't know anything, and don't feel firm enough to confidently say that's not what I want ... It's not really much skin off my back to sign up then pay off quickly and then I have those services and the other stuff there.... Hmm

[Ootohere]

@Jakefabia22

Sorry i never said welcome. I did not notice you were a new member.

?

Are you looking at a car 2 years old or older so with the Manufacturers Warranty expiring at 3 years and with this offer of a 24 month warranty rather than just 12 months on a Skoda approved used car?

https://www.skoda.co.uk/used-cars/deals

 

http://briskoda.net/forums/topic/504445-skoda-insurance

 

 

 

 

Edited 7 June, 2022 by roottoot

[Jakefabia22]

Thanks for the welcome!!

 

Thats correct. The cars from Feb 2019. 13k miles. MOT passed this February with no issues 

 

 

 

 

[Ootohere]

I would certainly want 24 months warranty cover.  So with the car or buying an extension when the time comes a year on.    ? What car, engine and gearbox.   What servicing has it had.  Each year, or first in 2021? 

Edited 7 June, 2022 by roottoot

[Jakefabia22]

Fabia estate 1.0 TSI SE

 

It's had three services every year  2020/21/22

 

 

[Ootohere]

Good.  FSH.

Not always to manufactures recommendations though. That needs checking. But it is low miles.

The pollen filter should  have been changed @ 2 years and the brake fluid @ 3.  Or at least tested.

The next service should be the pollen filter again, and even the spark plugs at 4 years even if not near 40,000 miles. 

[Jakefabia22]

Really appreciate your advice. 

 

 

[mark999]

When you take out finance there is a legal right on withdrawal within 14 days. Then you will only pay daily interest until you pay off the lump sum.

you will keep any financial incentives.

Mark

[nbramwel]

I have bought a Fabia mk3 and an Octavia mk3 and taken out the finance package which, on both occasions, came with the next 2 services at no cost.  I don't do finance so simply paid it off within a few days of collecting both cars.  I paid maybe a couple of pounds in interest but kept the 2 services.  A stupid way of doing business in my view but I had to protect my interests.

[nta16]

There will be sound business reasons why this is offered, it will make the businesses involved (manufacturer, dealer, finance company) additional profits from offering this as some people may think they'll take advantage as those here have but many others for many reasons will not and slip into paying intertest for much longer or full period of the agreement.  Paying by instalments, and the, usually,  high rate of interest in small less noticeable chunks in habit forming to many and can lead to more frequent vehicle changes.  Many purchasers turn a blind eye and deaf ear to the full amount of interest paid in the agreement.