Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%
Warning: Late repayment can cause you serious money problems - For help, go to moneyadviceservice.org.uk
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Author: Internal Customer Services Agent
The new MOT repayment scheme
For many consumers the cost of their yearly vehicle MOT is one which they dreed. The MOT can be a fuss-free and inexpensive task when everything runs smoothly and no additional repairs are required. For those of us where this is not the case and there are repairs to be paid before the MOT can be passed, the experience is quite different. One in four drivers who took part in a recent survey admitted the cost of their vehicle MOT was one of their most fearer costs due to the fact it was difficult to plan for given the variance in overall cost, and short time scale in which repairs had to take place. Clearly the fact that a vehicle MOT is a legal requirement for keeping the car or van on the road, it is of little surprise that so many consumers feel this way. Thankfully for those consumers whose MOT costs upwards of £200.00, there is a new scheme being offered by one particular motor repair chain which is bound to help. The scheme which has been launched in time for what is referred to as ‘MOT season’, allows consumers the opportunity to repay there MOT in a number of instalments. This new way of paying for, the often costly expense of the MOT, is being offered by Halfords Autocentre in over 300 locations and is designed to allow consumers a bit of flexibility and choice when it comes to the payment of their MOT.
The offer itself allows drivers to pay for their MOT in four instalments, where 25 percent of the total repair cost is paid on the day the vehicle is picked up. This offer is only available to those customers who make repayment via debit card and not by any other means. Where the offer is accepted the 4 instalments are interest free and therefore means the total cost is effectively split into smaller and more manageable repayments. Halfords through their research state that over half questions felt some form of anxiety when it comes to visiting a garage for a car repair and this is something they are keen to tackle with their latest customer focused offer. As part of their research in helping consumers manage their motoring costs effectively, Halfords interviewed 2000 people and the results were pretty eye opening. Of these 2000 nearly a third admitted they would rather simply ignore a dashboard warning on their car, then face the potential of a costly car repair bill. Equally Halfords research highlighted that surprisingly 16 percent of those asked would choose to ignore a repair until their next scheduled service, instead of getting the fault investigated at the time of discovery.
Halfords decided from this research that they wanted to enable their customers with the ability to keep their cars on the road in a manner which was not only affordable but safe also. A member of the Halfords Autocentre team said of the scheme ‘‘This service means drivers can spread the cost of unexpected repairs and we hope it will give motorists the peace of mind to get faults checked as they appear rather than wait, which could cause further damage to their cars.’ Clearly Halfords are aiming to reassure consumers that they offer great customer service not only in terms of MOT’s but also in a general sense too. Given that March and September are nationally the busiest times for MOT’s as a result of new car registrations being offered in these months, it has become a key focus for Halfords Autocentre. This independent research links into that of the Driver and Vehicle Standards Authority, who last month concluded that of the 28 million MOT’s carried out last year, 38 percent failed the annual test first time round. The DVSA have declared that they would like to see consumers taking part in more regular checks of their vehicle safety and becoming better able to manage the cost of repairs as they happen, rather than waiting until a later date. With this is mind Halfords latest offer is bound to open motorists up to a new way of thinking when it comes to the cost of their car repairs.
The actual cost of a MOT will vary depending on where the test itself takes place. Whilst Halfords have an offer focused on the repayment element of the test, other test providers offer other services to consider. Many garages offer the ability to reduce the cost of the MOT if the customer agrees to a service at the same time. Others aim to offer the lowest possible price for the MOT itself, with some garages offering the test for as little as £29.99. Clearly there are a number of options which exist to ensure the cost of an annual MOT is manageable and realistic and many price savvy consumers will no doubt be keen to try out this latest offering from Halfords.