Contracting contracts

I have just taken delivery of a new Nissan Note (under the scrappage scheme). The dealer has offered a 3 year service deal for £767.73 inc VAT now, or in monthly instalments which add up to the same amount over 32 months. The bonus is 3 years Nissan European Roadside Assistance under the RAC. Is this a good deal? I only do about 5000 miles a year.
It's quite expensive. The first service of my FIAT 500 was £107, including VAT and a full valet. If the service contract is dealer financed and the dealer goes bust you could lose the balance. And you need to check exactly what it covers. Is that for 3 annual services, or for indicator based services? You can get caught both ways. One reader had his 2nd service a month late and that put the third service outside the 3 year period. Others on indicator servicing have found they got no more than one service within the 3-year deal.
Answered by Honest John on

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