First Service....the cost was.......

[Crockers]

£8.40 for a touch up pen. Should have been £220 so I've now paid £280 for 4 years servicing. Happy Days.

[GMcL]

What did they do?
I'm assuming oil + filter, cabin filter and air filter?
Software updates ?

2 years is brake fluid, I'd be interested to hear if that's included or extra.

[Crockers]

As you outlined. Brake fluid change is an extra.

[GMcL]

I'd still be keeping a track of what I was getting for my upfront money.
I usually buy 12-24 months old. Take out the mechanics wage, the business rates to the local authority, various environmental processing costs, utilities, genuine parts & "castrol" brand oils costs and I'm left wondering where the profit is?
Volvo is a business not a charity. It could hammer resale values down the line if you are paying £500 for 5 years worth of servicing and the respected dealers such as MRG are no longer selling new Volvos. Why is that? Did they tell Volvo there was no money in servicing where the dealers traditionally make their money?

Fantastic deal for the first owner, a liability for no. 2

[Crockers]

MRG are still Volvo servicing agents - they just don't sell new ones, but they can source one for you at good rates - or so I was told. I don't know why they list their franchise to sell, but I suspect it maybe because Volvo are wanting to sell their cars from big flashy premises aka Mercedes and Audi. Those that know MRG, know its not a massive chain but a "family" run operation. I find them excellent and by far the best value - so much so that I drive past my local Johnson dealership to get to them.

Why is it a liability to owner no.2. The service deal can, I believe, be transferred.

[GMcL]

Why is it a liability ?
Your paying roughly £100 for £220 worth of work. Most main dealers charge that for an hours labour BEFORE any parts. Something's got to give. Time will tell where the savings are being made.
Not an issue for the first "owner" if they cycle out of cars every 2 to 3 years. The first few services under warranty are usually just oils, filters and kick the tyres it's years 4 and 5 where the real work starts and where customer satisfaction of a brand gets interesting.

[Razer]

Surely if enough people take up the £500 option the money sits in the bank and they get a shed load of interest on it which makes up the gap and gets them a profit?

[Crockers]

Can you please tell me where there is a "shed load of interest" to be earned???

Let's face it...5 years servicing is let's say £1500 for which they charge £500. Its just like giving a £1000 discount on the price. Doesn't affect the servicing garage at all.

[844PHW]

I guess Volvo make enough profit on sales that they can afford to subsidise these servicing offers. I read somewhere that they devote a proportion of the profit to maintaining the customer relationship.

[Razer]

Originally Posted by Crockers

Can you please tell me where there is a "shed load of interest" to be earned???

Let's face it...5 years servicing is let's say £1500 for which they charge £500. Its just like giving a £1000 discount on the price. Doesn't affect the servicing garage at all.

Put the money in the bank and take the interest on the money in there?. Surely nobody in their right mind would not take up this offer if ordering a new car so they must have quite a few £££'s invested in an account somewhere? It was just a thought and would cover some of the gap.