Volvo Australia introduces capped-price servicing

The Swedish brand is growing Down Under, but its pricey servicing has been a constant frustration. These new plans are designed to address those issues.
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Volvo Car Australia has introduced capped-price servicing across its range, addressing one of the biggest concerns about its SUVs, wagons and sedans.

The new plans pull Volvo's maintenance pricing into closer alignment with BMW, although the German brand is still cheaper.

Three years or 45,000km of servicing for the S60, V60 and XC40 is priced at $1595, and it'll cost $1795 to maintain the petrol XC60 and XC90. Servicing for the XC60, XC90 and V90 Cross Country diesels costs $1895.

BMW charges $1550 to maintain its XC40 rivals, the X1 and X2, and $1565 to service the S60-rivalling 3 Series – but BMW's pricing is for five years, not three.

The brand's XC60 rival, the X3 SUV, is offered with a five-year service plan worth $1750.

Mercedes-Benz's capped-price service plans are between $200 and $700 more expensive than Volvo's for the equivalent model.

"We're definitely aware of the price of servicing, thanks largely to you guys," Nick Connor, Volvo Australia managing director, told Australian media in Gothenburg earlier this year.

"We are aware of it, and we are doing something about it. We will be lowering the costs of our servicing and delivering better pricing with fixed price servicing."

Volvo's sales have defied the downwards market trend in Australia this year, driven largely by the XC40 and XC60. The company has registered 5078 cars to date in 2019, up from 4243 at the same point in 2018.

The arrival of the S60 and V60 will also aid Volvo's growth, while the brand is preparing to roll out its first pure-electric model Down Under in 2020.