Service Plan

[Andy p 1]

Evening all, picked my 250 prem up today, so nice to drive. I’ve been offered a 3 year service plan for £32 a month or £1020 one off payment. This is for the first 3 services. Is this good value or not. Not this will only include 1 full service. 

[Illogan]

Hi Andy,

It's a matter of choice, of course, but my take on this is that you've effectively inflation-proofed your servicing costs for three years (all the service costs are calculated at current prices), and you've easy-payment terms without any interest charges, and the best equipped specialist for your car.

Which is why I do the same as you.

[KingHal]

14 hours ago, Illogan said:

Hi Andy,

It's a matter of choice, of course, but my take on this is that you've effectively inflation-proofed your servicing costs for three years (all the service costs are calculated at current prices), and you've easy-payment terms without any interest charges, and the best equipped specialist for your car.

Which is why I do the same as you.

I agree with all that, barring one issue. This service plan is not interest free. It’s a dishonest marketing trick. We are paying in advance. Lexus are banking our money. 

[KingHal]

BTW, I signed up to the service plan when I collected my new UX, having had one for my CT. The salesman and sales manager were present and the salesman reiterated that their service plans are “interest free”. I said very clearly that I was paying in advance and, therefore, it wasn’t interest free. They both just continued without indicating they’d even heard me!

[NemesisUK]

21 minutes ago, KingHal said:

I agree with all that, barring one issue. This service plan is not interest free. It’s a dishonest marketing trick. We are paying in advance. Lexus are banking our money. 

Which is how Lexus can absorb any cost increase over the life of the plan. As the customer you are not paying any interest 

[bigglesfllesundone]

Lexus will only be 'borrowing' our money for a maximum of 12 months (variation in major/minor prices allowed for), as the plan is paid for paid monthly for the duration of the plan.

With a 2022 car you can buy a plan for 10 years of services/MOTs which means for the service/MOT in 2032 the monthly payment is the same as now. With inflation as it is that will be an enormous saving.

For service plans with just one dealer (not national contract ) a discount may be negotiated.

[wharfhouse]

2 hours ago, KingHal said:

I agree with all that, barring one issue. This service plan is not interest free. It’s a dishonest marketing trick. We are paying in advance. Lexus are banking our money. 

Pay monthly and interest free? That's what I do on a Lexus service plan and also a Toyota service plan on our other car. Prices are locked in for the length of the plan. 

[Andy p 1]

Just out of interest what does a full service cost now without a plan?

 

[Illogan]

3 hours ago, KingHal said:

I agree with all that, barring one issue. This service plan is not interest free. It’s a dishonest marketing trick. We are paying in advance. Lexus are banking our money. 

Of course.   I'll admit that my thought process (and rationale) started three+ years ago, when the interest rates on savings were damn-all of tuppence, I accept that things are a trifle different now!

 

[wharfhouse]

30 minutes ago, Andy p 1 said:

Just out of interest what does a full service cost now without a plan?

 

They are listed for the UK on here: https://www.lexus.co.uk/owners/servicing-and-maintenance/servicing-mot-hybrid-health-check

[Navnan2]

Another factor is how long you will keep the car and is it an outright purchase. They quote £270 intermediate, £480 full service. Not sure that includes everything in that price? I'm on a PCP and was offered a replacement car before two years were up. I didn't go in for any plan as I will never drop out of a warranty period.