Hi Vishal,
That price is definitely at the high end for one of these, especially in the less desirable silver finish. If you are willing to pay £400 for a year's worth of service then go for it, but I would counsel a certain amount of caution as these cameras are starting to get a bit old now and although reasonably well-built for a compact they are not Nikkormats. I have two of them, and both have faults.
In the end I have given up and switched to a Minox 35ML because the rangefinder in the T is so hard to use in anything but the best light anyway. If you take away the RF, the T makes a lot less sense compared to the Minoxes or the Rollei 35s, which can be had for less money and are better cameras in various other ways. The main bugbears with the T are the lack of an AE lock and the extremely primitive shutter speed indication.
Anatoly, I wouldn't agree that a T3 is a viable alternative to the original T, because the motor wind means you can't use it in churches, theatres and other places where you can happily shoot away with the T without bothering anyone.
Regards,
-= mike =-
PS. Vishal, if you are intent on a T, please drop me a direct message as I would be willing to part with both of mine for considerably less than your dealer is asking. I'm based in London if you wanted to see the cameras and assess the seriousness of the faults.