Extending service plan on a secondhand car and financing it

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MisterBigglesworth

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Im looking at a secondhand i20, it has about 40 000km on the clock, so it has 20 000km left until the service plan expires. They have opted to extend it to 120 000km, which is fine...but have bolted on the cost to my finance amount. I drive about 25 000km a year, so it will expire in about 3 or so years....then for the remainder of the finance (2 years), Im still paying off a service plan I dont use and will either have to extend it again or start paying for services. This seems like a bit of a miss...but at the same time I dont have the cash around to add it on separately to the finance...which sucks.

Is an extended service plan a better option, or should I just not opt to take it and pay for services when needed at a service garage (I would prob avoid the dealers due to high dealer prices, but take it to a reputable service garage)? My concern here is the high mileage I do...so even having a service plan extended and financed into the deal, will it be worth it?

Fazda...know you the resident car purchasing guy here...any thoughts on this, should I just extend the service plan with my finance? :confused:
 
How much are you talking about for the extension?

To be honest most of the time this stuff is a supreme rip off especially if you start taking your car to a non-dealer specialist outside of your warranty/service plan period.

Things like brakes/discs aren't covered by service plans and neither are suspension components and those are the things that really cost you money...not services.

Remember a service plan also isn't a warranty, so anything that breaks and isn't considered a normal service component you will be charged for.

So ultimately you are looking at an out of pocket charge of R1250 - R 2500 every 15 000km (or 20 000km on Hyundai maybe?) POTENTIALLY and you need to weight that up against the cost of the plan which you WILL pay regardless.

In the past two years I've spent about R10k on my Golf GTi because I had to replace the front suspension and brake discs and pads above and beyond the service costs. This sounds crazy but then bear in mind that the service plan to cover these two years would have been R9 000 (from what I recall) and not have covered these components so I would have still forked out probably half of that one top of the cost of the plan.

Bear in mind that I won't be replacing said suspension or brake components for another 50 000km at the very least and the plan makes no sense at all...even considering the "bad timing" I had. If the timing was better and I just had normal services to cover they would have made a 200% profit off me with the service plan.
 
An extended warranty makes much more sense to my mind than a service plan. Services shouldn't ever be a major expense, but you'll be reduced to tears if you have a still-financed car with a borked engine or gearbox which you need to foot the entire bill for.
 
HapticSimian said:
An extended warranty makes much more sense to my mind than a service plan. Services shouldn't ever be a major expense, but you'll be reduced to tears if you have a still-financed car with a borked engine or gearbox which you need to foot the entire bill for.
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+1
 
Thanks for replies guys, makes sense what you guys are saying. Im seeing the finance woman tomorrow...so will get the finer details.

The current one is 60000km/3 yrs, bolt on will be 120000km/5 yrs. The bolt on price is extra R270 a month. They also added a 2 year mechanical warranty option for an extra R98 a month - but the car comes std with a 5 year/120 000km warranty? This makes no sense.

So ja...thats almost R400 extra a month...and for someone on a tight budget, that's a lot extra. So I dont just want to take it for the sake of having it...but I need to know if its really worth it?
 
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CrazyFig said:
Thanks for replies guys, makes sense what you guys are saying. Im seeing the finance woman tomorrow...so will get the finer details.

The current one is 60000km/3 yrs, bolt on will be 120000km/5 yrs. The bolt on price is extra R270 a month. They also added a 2 year mechanical warranty option for an extra R98 a month - but the car comes std with a 5 year/120 000km warranty? This makes no sense.

So ja...thats almost R400 extra a month...and for someone on a tight budget, that's a lot extra. So I dont just want to take it for the sake of having it...but I need to know if its really worth it?
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Skip both of those extras. How many months are you financing it over? R270 a month sounds EXTRAORDINARILY steep if its over 5 years.
 
Yep, its 5 years. I really cant see the "benefit", and if there is one...I dont see how its exceptionally beneficial. The mechanical warranty....ja ok, I kinda get that one...cos if a gearbox breaks...I want the cover...but service plans...ja, I not sold on this.

At the moment, my gut is saying just leave it off...but when I see finance woman tomorrow I will get all the fine details 100%, and then again re-assess.

Thanks guys ;)

EDIT: R3500 doc and registration fee. WTF...saw there was a topic about this. If its just that, documentation and registration...lol, not a chance Im paying that! Will get the finer details of this too...
 
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CrazyFig said:
EDIT: R3500 doc and registration fee. WTF...saw there was a topic about this. If its just that, documentation and registration...lol, not a chance Im paying that! Will get the finer details of this too...
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Docs, registration, number plates, full tank of petrol and valet normally.


And if it's the cheap seats....apparently car mats as well. :)
 
Hahaha....ja been following that thread for a while. Decided to email her for all the queries I have, so hopefully she gets back to me today before I go through tomorrow. ;)
 
CrazyFig said:
Hahaha....ja been following that thread for a while. Decided to email her for all the queries I have, so hopefully she gets back to me today before I go through tomorrow. ;)
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And you better make sure the petrol tank is full when you collect it. That 1/7th of the registration fee right there.
 
Also read the fine-print on those bold-on warranty’s. The exclusions sometimes makes it worthwhile to just put money away for the chance of anything big happening.
 
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