When we purchased our vehicle in Fremont Mazda, the finance guy offered us prepaid maintenance. My immediate reaction was "NO". But my wife was more receptive, especially after he significantly discounted the cost and hearing promises that it will cover all scheduled maintenance until and including 60K. Eventually, we agreed.
However, along with the paperwork we got nothing to document what we paid for. There was no problem getting the "free" service at the Oak-Tree Mazda of San Jose, a location closer to us. Then, many months later, we found out that the maintenance is not as comprehensive as promised. In fact it is bare-bones basic, so bare that even a cabin filter is excluded.
We feel we were cheated into taking this plan through Fremont Mazda as there was no honest disclosure of what is covered and what is not. This is why we got no paperwork for this.
If you are thinking of a new car, I'd encourage you to no skip Fremont Mazda.
Also, I'd encourage you to skip prepaid maintenance. If you are still tempted, check and insist on getting plan documentation.
How can you tell if it is worth it to you?
The answer is that it probably is not, because they are a business and are trying to make money. Why will they lose money on this transaction?
To properly check this, you need to calculate the sum of all present values of all future expenditures (because you are giving them a free loan with your prepayment and money today is worth more than the same amount in a few years). Or, simply, say NO to it.
However, along with the paperwork we got nothing to document what we paid for. There was no problem getting the "free" service at the Oak-Tree Mazda of San Jose, a location closer to us. Then, many months later, we found out that the maintenance is not as comprehensive as promised. In fact it is bare-bones basic, so bare that even a cabin filter is excluded.
We feel we were cheated into taking this plan through Fremont Mazda as there was no honest disclosure of what is covered and what is not. This is why we got no paperwork for this.
If you are thinking of a new car, I'd encourage you to no skip Fremont Mazda.
Also, I'd encourage you to skip prepaid maintenance. If you are still tempted, check and insist on getting plan documentation.
How can you tell if it is worth it to you?
The answer is that it probably is not, because they are a business and are trying to make money. Why will they lose money on this transaction?
To properly check this, you need to calculate the sum of all present values of all future expenditures (because you are giving them a free loan with your prepayment and money today is worth more than the same amount in a few years). Or, simply, say NO to it.