Monday, 13 May 2013

Price illusions !

Motoring organizations are warning the public to be very careful when they consider fixed price servicing offers as part of a car buying decision.    Like all inducements to buy, the devil is in the detail - and the wise will study the fine print carefully and make sure they fully understand what is offered.

In some cases, it is the length of time this offer is valid.  Car servicing usually has a major item service at regular intervals and this delivers a price blip.  Some fixed price offers come to an end just before the distance covered or time allotted requires this work to be done - and it is then at the owner's expense.

Factory warranties have been extended in recent years and in many cases it now covers a five year period.   It would be naive to expect that a fixed price service option would automatically cover that whole five year period.   Some do - but many don't.   Once again, a good reason to study the small print - carefully !

Car companies have another requirement to claw back some of that fixed price cost.  Owners are required to present their vehicle for an " inspection " within a time frame, and of course there is an " inspection fee " involved.   All in all, it can result in the service cost for a small, economy priced hatchback to exceed the servicing cost of a big land cruiser.

Another inducement to buy is low or no interest car finance.  Once again, this can have unimagined expenses tacked on in the way of account keeping fees and late payment fines.   Low interest finance is a huge improvement on the interest rates usually charged by finance companies, but buyers should ensure that what they are signing up for is within their capacity to service payments with precise regularity.   Any departure from that routine can bring expensive factors into play.

The car world has become so competitive that the days of getting a " lemon " have virtually disappeared.   The advent of computer design and testing has introduced a new era of reliability, long intervals between services - and the life of auto engines is now exceptional.    Most people buy a new car on the basis of keeping up with changing trends and appearance - not because the old one is " worn out " !

Now the big decision is getting the finance deal " right " !

No comments:

Post a Comment