Capped-price servicing is one of the current buzz phrases doing the rounds in the local new car market but what does it mean and who’s on-board?
The basic premise of capped-price servicing programs is to alleviate consumer doubt and hesitation towards their vehicle’s regular scheduled servicing through the life, or the first three to five years anyway, of the car.
This is done by manufacturers openly declaring a price ceiling for each of the scheduled individual services for the allotted time period of the servicing program.
These time frames vary from brand to brand but are usually spread across three to five years giving new car buyers added piece of mind and another fixed financial factor to take into consideration outside of a vehicle’s initial purchase price.
The first brand to introduce a capped-price servicing scheme was Toyota back in January of 2008.
Toyota Service Advantage gave new eligible Toyota buyers a fixed-price plan for each standard scheduled service for the first three years of vehicle ownership or 60,000km. The first cars covered were the Yaris, Prius, Camry, Aurion, TRD Aurion, Corolla, Kluger, RAV4, RAV V6, Tarago, Avensis and LandCruiser 200 series.
After Toyota got the capped-price servicing ball going, Mitsubishi released its own program in January 2010, covering the first four years of ownership or 60,000km.
Nissan then followed suit in December that same year, offering buyers capped-price servicing for six years or 120,000km under its myNissan program.
Ford was next, unveiling its myFord capped-price servicing plan across all models in July 2011. The plan was made available for all Ford’s built from 2007, stretching to six years and 105,000km and included 12 months myFord Standard Roadside Assistance.
Local rival, Holden, was next to join the team launching HoldenWise capped-price servicing across a range of vehicles in April 2012, ahead of a wave of late comers including Korean sister brands Hyundai, with Hyundai iCare, and Kia, with Kia Connect, in July.
Most recently, Opel introduced its own Service Plus program this August to become the first of the European brands – which have a reputation for some of the higher servicing costs – to offer capped-price servicing. Volkswagen is understood to be considering following suit.
Capped-price servicing breakdown featured first in the CarAdvice iPad magazine app that can be downloaded free every month.