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Capped Price Servicing
Capped Price Servicing
Written by
Kervin Mathew
Edited by
Ellie Garran
Reviewed by
Adrian BennettCompare car insurance policies the easy way
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Long story short
Capped price servicing helps lock in your car service costs
You also have the assurance of manufacturer-approved service quality using genuine parts.
Service agreements can vary by brand, model, and what’s included
Engine oil, filters, and routine checks are common inclusions, but not tyres, brake pads, or spark plugs.
Most major car brands in Australia offer capped price servicing
Service costs can depend on the car’s manufacturer and model.
Independent mechanics may be cheaper overall
Replacing wear-and-tear items like brake pads and tyres could cost half as much.
What’s capped price servicing?
As the name suggests, capped price servicing is a scheduled car maintenance program offered by car manufacturers through dealerships. It helps guarantee that your car is serviced by manufacturer-approved technicians using genuine parts. For the manufacturers, it’s a way to attract customers, pip the competition, and build brand loyalty.
When it comes to you as a customer, though, the main advantage of capped price servicing is the fixed costs. In other words, you can be certain of what you’ll be paying when you get your car serviced – which might be a relief, compared to the awkward ‘How much?’ or the dreaded bill shock after each service!
How does capped price servicing work?
When you buy a new car at a dealership, the dealer might offer you a capped price servicing plan that clearly outlines:
- the number of capped price services you’ll get
- how long the capped price servicing period lasts
- the cost of each service and what’s included
- when each service is due, AKA the service interval.
The service interval is the frequency of each service. This could be based on either the length of time between services or the distance driven. For example, a capped price service agreement may require that your car gets serviced every year or for every 10,000 km driven – whichever comes first.
You might even be able to bundle the servicing costs into your car loan.
In the end, if you’re happy with the manufacturer’s capped price servicing plan, all you need to do is sign on the dotted line and drive away in your new car – whilst making a mental note to bring it back in for its next scheduled service!
What does a capped price service include?
Typical inclusions may vary by the car’s make and model, but you can expect capped price servicing to include:
- inspections and checks including brakes, suspension, fluid levels, and fuel systems
- replacement of standard service items like engine oil and filters
- manufacturer-trained technicians, genuine parts, and labour costs.
Also be wary of what’s not included. Capped price servicing agreements might exclude the costs of replacing of wear-and-tear items like brake pads, tyres, brake fluid, or spark plugs. Again, this could depend on the manufacturer.
Helpful tip
Car insurance generally takes care of some things that capped price servicing can’t, like accidental damage. Also, if you have a preferred mechanic for repairs, a common optional extra on comprehensive car insurance called ‘choice of repairer’ might help cover repairs performed by repairers outside the insurer’s network. Some comprehensive policies include new-for-old replacement car cover which, under the right circumstances, could replace a written-off vehicle with a like-for-like or similar model.
Adrian Bennett
General Manager for General Insurance
Do all car brands offer capped price servicing?
Given the competitive landscape of auto sales in Australia, most major car brands operating down under offer capped price servicing plans, sometimes marketed under a different name, as it adds to their selling proposition.
Bear in mind that the specifics such as service intervals, number of years covered, and even how you pay can vary between manufacturers and models.
For instance, Kia’s capped price servicing plans can run for up to seven years or 70,000–105,000 km (whichever comes first), depending on the car model. With Volkswagen’s capped price servicing, you have the option of paying in advance for all your services over three or five years.
Major car brands with capped price servicing deals
- Toyota
- Mazda
- Hyundai
- Kia
- Mitsubishi
- Ford
- Nissan
- Volkswagen
- Subaru
- Honda
So, is capped price servicing worth it?
It could be, depending on the level of service you want and how much you’re willing to pay for it.
If you prefer predictability and transparency with your car service costs, capped price servicing might be the way to go. Plus, you can be certain that the service quality your car gets is up to the manufacturer’s standards.
If you’re after something cheaper or more customised (or both), you might prefer your friendly, neighbourhood mechanic who services your car exactly how you want it and at a price that doesn’t burn a hole in your pocket.
Cost comparison: Capped price service vs independent service
Capped price service costs
Capped price servicing costs can vary between car brands and models. For example, Toyota’s capped price servicing might cost you as little as $165 per service for certain models. On the other hand, if we’re talking a high-end Subaru, you might end up shelling out up to $770 per service.
Independent service costs
Car servicing with independent mechanics might work out cheaper – especially if you consider what’s not included in a typical car service. For instance, a brake pad replacement at an independent repair shop might cost you between $400 and $600 – about half as much as a dealership would charge.
Another important factor is overall costs – if Dealer A charges less for each service but asks you to bring your car in more often, there’s a chance you’ll end up paying more compared to Dealer B, who charges more per service but has longer service intervals. So, it’s always worth considering this aspect before committing to a manufacturer’s capped price servicing plan.
Frequently asked questions
How long does capped price servicing last?
Capped price servicing could last for three years, the entire life of the vehicle, or anything in between – it depends on the manufacturer. It might be worth checking how much you’ll need to pay for a service after the capped price servicing period ends, just so it doesn’t catch you by surprise.
Is capped price servicing available for second hand cars?
Yes, capped price servicing is tied to the vehicle identification number (VIN) and not the owner. So, whether it’s a used car or even a demonstrator model, the capped price servicing scheme transfers with ownership of the vehicle.
Fair warning – before you buy a car it’s important to check its history. Some cars, like fleet vehicles, may not qualify for capped price servicing. Modifications to the engine, suspension, body, and other parts could also disqualify a car from its capped price servicing agreements.
What happens if I miss a capped price service?
If you miss a scheduled capped price service, you might have to forego that service. You might even have to pay extra for the next scheduled service.
No dramas! Sometimes life happens and you just can’t make the schedule. In such cases, you might be able to contact your dealership and work something out.
How else can I keep car ownership costs low?
Capped price servicing is a great way to protect your car and ensure that it’s in tip-top shape without facing unexpected servicing costs. Similarly, a solid car insurance policy could help shield you financially from unpredictable damage to your vehicle and the potentially high repair costs that come with it.
Use our comparison tool to compare car insurance policies from a range of providers and get added protection for your car and peace of mind for you.
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