Volkswagen offers fixed-price servicing package

Volkswagen is offering all buyers of its new cars a fixed-price deal that provides three years of routine servicing for a fee of £250. The price is the same for all models, so represents a particularly attractive offer for buyers of the company's more expensive and sophisticated models such as the Touareg 4x4 and the Phaeton luxury saloon. Coverage is restricted to the first 30,000 miles of the car's life.

The new plan builds on those which Volkswagen Finance has been offering on selected models since 2007, and is transferable to subsequent owners if a car is sold on during the coverage period. Existing Volkswagen owners and buyers of used Volkswagens won't miss out; they are being offered a separate fixed-price servicing plan priced at £299.

Fixed-price servicing packages often represent a good deal for the customer but have certain advantages for the manufacturer as well; cars covered by the plans are more likely to stay within the franchised dealer network for servicing and the plans may also help to support residual values. The most successful version of a fixed-price servicing scheme is probably the popular TLC plan offered by BMW for its MINI models.