Pay monthly service plan :confused:

[Ste140i]

So how does it actually work then??
I signed up in 2019 to pay £20 per month for 36 months so £720 total. This 'covers' 2 services so an oil change this year then a big service in 2023.
I tried to book for the service online but it said I didn't have a service plan! After a bit of to & fro with emac (useful as a chocolate fireguard) I rang the local dealer.
All booked in with them and they managed to trace the agreement but the comment when they did find it got me wondering..........

"You have a balance of £400 so enough to cover the first service"

Now this implies to me that my payment of £400 will have the 1st service cost deducted, say £250, leaving a £150 balance. My future payments will total £320 so I will have £470 when the 2nd big service comes around. Because that isn't nearly enough for an OIl/Plugs/Air Filter/Brake Fluid service what actually happens? Does the dealer undercharge, do emac stand the difference or will I be expected to pay more which wasn't what I signed up for?

The dealer was suitably vague about it all, and given that emac have it down as a 4 cylinder car i'm not exactly confident in them either.

[Snakeplissken83]

I'm assuming that the comment about having enough to pay for the first service is due to the amount you have paid in so far. Presumably if you had missed a few payments you'd have still owed them some money for the service.

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[Ste140i]

Hope so but it's as clear as mud.

[NISFAN]

Do you have documents showing how much it costs? When you started the contract, the plan is supposed to freeze the costs of the service. If the dealer doesn’t apply the original service cost and charges more, you’ll be out of enough funds to cover the next one. It was so complicated I decided to just start my own savings plan.

[Ste140i]

No specific prices for the services but a list of what's included which should mean that everything is covered (S1/S2 MOT plus 2 map updates) but I still don't see how that works if the Dealer is charging their price to emac and knocks it off the total paid, as you say my £720 will not be enough but at no point has anyone said that i'll have to pay more. If the dealer charges say £250 and £750 (I'm sure i read somewhere that the 2nd service cost was more than the service plan total??) who stands the £280 difference? Me? Dealer? Emac? BMW?

[aem999]

How much the dealer charges back to Emac for each service is irrelevant to you, you will not be charged above the agreed £720. On my contract it shows that there is also a BMW contribution above the £720 that makes up the difference to the dealer. The only issue is making sure that if you are paying the £720 by installments instead of up front, that you have paid enough to cover the first service. If not the dealer will ask you to pay some more of the £720 up front.

None of this is explained very well. My dealer told me on my first service that my one map update "was my lot" as if they were doing me some kind of favour but the contract clearly states that it provides 2 map updates, so I will be insisting on the 2nd one.

[muon]

What happens is that the service costs are already pre-calculated. The dealer isn't being paid what you see when you go get a quote.

[Ste140i]

Thanks for that.

[50pence]

So how does it actually work then??
Now this implies to me that my payment of £400 will have the 1st service cost deducted, say £250, leaving a £150 balance. My future payments will total £320 so I will have £470 when the 2nd big service comes around. Because that isn't nearly enough for an OIl/Plugs/Air Filter/Brake Fluid service what actually happens? Does the dealer undercharge, do emac stand the difference or will I be expected to pay more which wasn't what I signed up for?

The service plan is discounted relative to the individual service prices.

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[DanH6]

As above. It's best not to overthink it, or care where the dealer may be losing money! You pay £720, entering into a contract with emac on behalf of the dealer, for all the items stipulated in the service plan, period.

My best guess is they pro-rata reduce the price of each item making up the £720. E.g. M.O.T. & brake fluid are priced at £39 & £59 under service plan but £54 & £73.25 out of it respectively. We don't have visibility of how much the minor & major services are marked down by but will be the same approach.