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In Australia, car ownership comes with its fair share of responsibilities, one of which is maintaining your vehicle through regular servicing. However, the costs associated with this can leave car owners in a financial hole. This is where capped price servicing comes into play, offering peace of mind and cost certainty for drivers across the country. In this blog, we'll delve into the ins and outs of capped price servicing, exploring what it is as well as its benefits and drawbacks.
What is capped price servicing and how does it work?
Capped price servicing, also known as fixed price servicing, is a program offered by many car manufacturers and dealerships in Australia. Essentially, it means that the cost of scheduled servicing for your vehicle is capped at a predetermined price for a set period, typically covering the first few years of ownership or a certain number of kilometres, whichever comes first.
When you purchase a new vehicle from a participating manufacturer or dealership, you'll often have the option to include capped price servicing as part of your purchase agreement. Alternatively, you may be able to opt into the program at a later stage. Once enrolled, you'll receive a schedule outlining the services required for your vehicle at specific intervals, such as every 6 months or 10,000 kilometres.
The capped price for each service is fixed and transparent, providing you with clarity on the costs associated with maintaining your car. This means no unexpected surprises when it comes time to visit the service centre.
Many car makers brands offer capped price servicing on their vehicles, including Toyota, Mazda and Mitsubishi. However, price, duration and what is covered will vary between suppliers and may change over time, so it is important to check with the brand to understand what exactly the scheme covers.
What are the benefits of capped price servicing?
Capped price servicing can offer car owners a number of benefits:
- Cost certainty: one of the most significant advantages of capped price servicing is the assurance of knowing exactly how much each service will cost. This helps you budget effectively and avoid any unforeseen expenses.
- Peace of mind: with capped price servicing, you can rest easy knowing that your vehicle is being maintained to the manufacturer's standards without breaking the bank. This can alleviate stress and make car ownership a more enjoyable experience.
- Quality service: participating dealerships and service centres adhere to strict guidelines set by the manufacturer, ensuring that your vehicle receives the highest standard of care. This can prolong the lifespan of your car and help maintain its resale value.
- Nationwide coverage: capped price servicing is widely available across Australia, regardless of where you purchased your vehicle. This means you can access quality servicing no matter where you are located.
- Warranty compliance: regularly servicing your car according to the manufacturer's recommendations with genuine parts is crucial for maintaining your vehicle's warranty.
What are the potential drawbacks of capped price servicing?
While capped price servicing offers numerous benefits, there are a few factors to consider before enrolling:
- Exclusions: some wear and tear items may not be covered under capped price servicing, such as brake pads, wiper blades and tyres. Be sure to read the terms and conditions carefully to understand what is and isn't included.
- Potentially higher costs: capped price servicing plans might seem more expensive upfront compared to independent mechanics, especially for basic services. However, the use of genuine parts and factory-trained technicians can justify the cost for some car owners.
- Limited flexibility: you’re restricted to servicing your car at authorised dealerships participating in the manufacturer's capped price servicing scheme. Independent mechanics typically offer more flexibility in terms of servicing options and parts used.
Key considerations before choosing capped price servicing
Before signing up for capped price servicing, there are several factors to weigh up:
- Driving habits: if you're a high-mileage driver, the potential fuel savings and longer lifespan offered by capped price servicing might make it a worthwhile investment.
- Budget: compare the upfront cost of capped price servicing plans with quotes from independent mechanics for similar services to determine the most cost-effective option for your needs.
- Convenience: if convenience and peace of mind with genuine parts and qualified technicians are priorities, capped price servicing offers a straightforward solution.
To make the most of your capped price servicing plan, it’s important to:
- Read the fine print: carefully review the terms and conditions of your chosen plan to understand what is included and any exclusions.
- Service on time: missing scheduled services within the timeframe can void your warranty and potentially affect the resale value of your car.
- Keep records: maintain a record of all your completed services for future reference and warranty purposes.
- Ask questions: ask dealership service advisors about specific procedures, parts used and any additional costs beyond the capped price servicing plan.
Should I choose capped price servicing or an independent mechanic?
The choice between capped price servicing and independent mechanics depends on your priorities and budget. Here's a simplified comparison:
| Feature | Capped price servicing | Independent mechanics |
|---|---|---|
|
Cost |
Potentially higher upfront cost, but the price is set |
Can be cheaper for basic services, but costs can vary depending on labour rates and parts used |
|
Convenience |
Convenient and straightforward; no need to negotiate prices or get quotes |
May require more research and comparison shopping to find a reputable mechanic |
|
Transparency |
Predefined costs for each service |
Costs may not be clear upfront, with quotes needed |
|
Warranty |
Ensures warranty compliance by using genuine parts and authorised dealerships |
May require verification that parts used comply with warranty requirements |
|
Expertise |
Technicians are generally trained for your specific car model |
Expertise can vary depending on the mechanic |
|
Flexibility |
Limited to authorised dealerships participating in the program |
More flexibility in terms of servicing options and parts used – though be aware of potential warranty implications |
|
Quality of parts |
Uses genuine parts manufactured by the carmaker or specifically approved for your vehicle model |
Parts quality can vary depending on the mechanic; ensure they use parts that meet manufacturer specifications |
Capped price servicing offers Australian car owners a convenient way to maintain and manage the cost of their vehicle. However, servicing is just one of the expenses to consider when buying a new car. A vehicle is a big investment. If you want to spread the cost, Savvy’s car loan comparison service can help. We can compare offers from dozens of lenders to find the most suitable loan tailored to your needs and budget. Get started today!
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