MG Service plan, what is the £19 for?

[Kenp1]

Just thught I'd get a quote online for a 2 year service plan, when I got to the totals screen I noticed something strange. The first service (year 2) is £217.10, the second is £114, this gives a total of £331.10, but the total of the instalments is £350.30.

So the question is what is the £19.20 for, no mention of interest or any extra chartges?

 

[siteguru]

It'll be in the T&Cs somewhere ... there's almost always a finance agreement in place when paying by instalments. (The plan is paid in full upfront by the finance company, and then you're repaying that loan over the period - loans almost always attract interest).

 

[Kenp1]

Just got the quote through by email, it's called a management fee.

I understand that these things can have interest or a fee, but it should be mentioned somewhere as you go through the process.