All the finance companies that we work with offer an optional maintenance package with their contract hire products for both businesses and personal individuals. The Maintenance package is optional however this article details what can be included within the packages for you to review and decide if you wish to add the maintenance package to your vehicle contract.
When you receive a quote from BN Financial Solutions Ltd we will always provide you with the “Customer Maintained” rate and the “Fully Maintained Rate”.
A Customer Maintained rate which is price for contract hiring the vehicle also called the finance rental. A Customer maintained contract is where all the vehicle maintenance is required to be carried out by the leaseholder. Routine Maintenance includes the regular servicing of the vehicle following the manufacturer service intervals, Replacement Tyres with the same type as provided with the vehicle (Speed Rating and manufacturer) All fluid top ups using items recommended with the vehicle marque and vehicle handbook, Brake discs and pad replacements when required, replacement of chipped/cracked glass, Light bulbs and also for piece of mind purchasing roadside assistance as this is not guaranteed for the full warranty period of the vehicle. Some manufacturers only include roadside assistance/breakdown cover for 12 months while others include up to 3 years. This will need to be investigated before making your decision.
Customers who opt to go with a Customer Maintained contract need to make sure that the vehicle maintenance is carried out as per the vehicle handbook and at either a franchised dealership or at a reputable garage that uses genuine manufacturer parts and is VAT registered. We would advise that all receipts for any maintenance carried out is stored within the vehicle handbook as the finance company will require proof that the scheduled maintenance is carried out at the end of the contract.
A Fully Maintained contract includes the finance rental along with an additional maintenance rental. This extra cost is to build up a maintenance budget for the vehicle that the finance company estimates will be enough to cover the maintenance that the vehicle will require throughout the lessee’s contract and is based on the vehicle models service intervals, Estimated annual mileage, total contract mileage and length of contract and age of vehicle at the end of the contract.
Each finance company structures their maintenance contracts in different ways so BN Financial Solutions will give full details and exclusions of the maintenance contacts offered with each quote giving you full piece of mind and the full information for you to make your choice with each quotation.
Fully Maintained contracts include the following services as standard: -
- Routine Servicing of the vehicle at their specified schedules.
- All Fluid Top ups i.e Oil, Coolant, Brake Fluid, Power Steering Fluid during service only
- Replacement Batteries
- Replacement Tyres
- MOT Tests (If contract is over 3 Years)
- Breakdown Assistance
- Brake Pads and Brake Discs.
Fully Maintained contracts do however not include the following in the main:-
- Glass/Windscreen chips or cracks
- Fluid Top Ups outside of when vehicle having service
- Tyres if the damage has been due to Driver abuse i.e kerbing wheel or aggressive driving
- Any Fault due to driver neglect i.e not filling up oil, Ad Blue etc.
Fully Maintained contracts can work out to be good value for money due to the fact that all of the servicing is carried out at a local franchised dealership and can be booked in by contacting the finance company who will organise the booking for you. You can be offered a courtesy vehicle for the time that the vehicle is with the garage however this is not guaranteed. If this is offered by the dealership this is subject to availability and is separate from the finance company and the dealership. Fully Maintained contracts also include full breakdown service from either the AA, RAC or manufacturer direct e.g Volkswagen group recovery.
Things to Consider with Maintenance Contracts
Total Cost V Monthly Cost.
You need to work out how much you would pay over the contract length and then compare that cost to the cost of the individual services, Tyres, Fluid top ups etc. You will need to research the cost of these elements and work out what is the most cost effective.
Do you want to organise the maintenance yourself or Just make a phone call?
With a fully maintained contract within the paperwork the finance company will provide the lessee a dedicated phone number which can be called to organise routine servicing, Replacement Tyres, Other repairable items included within the contract. All paperwork and invoices are dealt with by the finance company. With a Customer Maintained contract the lessee has to organise all of the routine maintenance themselves at their own cost. All invoices must be paid at the time the maintenance is carried out and could be at short notice. Some people may prefer to organise everything and may have good contacts with their local garage, but this may not be acceptable by your company car guidelines so is best to be checked with your employer if the vehicle is a company vehicle.
Cost advantages for taking Maintenance
A fully maintained contract can work out to be a cost effective and convenient option for your vehicle because the finance companies have large buying power and therefore can obtain lower prices for the servicing tyres etc from the vehicle manufacturers and can obtain slots at dealerships at short notice. This does need to be considered before making your decision, but you need to research the potential costs yourself to make an informed decision.
If you are using the vehicle for company use and are VAT registered, you can claim back 100% of the VAT charged on the maintenance element of the contract. This can be done with the advice of your accountant. Please note that this benefit can be changed at any time by the UK Government so it is always advised to check with your accountant before making any claim on your VAT return.