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What is the benefit of capped price servicing?

Asked by Steven Meori

What is capped price servicing, how does it work and what benefit is it to me as a motorist? I just had a 15,000km service on my Kia Proceed GT. Having parted with a few hundred of my hard-earned dollars, I asked the service adviser the same question. He could not give me an answer and told me to look it up on the net. Can you believe it? Hey, they even charged me to rotate the wheels on my car, which was done on their recommendation. Absurd. I love the car — what you pay for and what you get is hard to beat — but I think capped price servicing is a con. I end up getting charged just as much as anyone else that walks through the door.

Answered by CarsGuide

13 Jun 2016 Paul Gover

The big thing with capped price servicing is not to authorise any work at all beyond the factory schedule. The capped-price programs — which are not called “fixed price” because it's illegal for car makers to fix a price, although they can set an upper limit — were created so people could plan their whole-of-life costs when buying a car. It's to create certainty on the future scheduled work on any vehicle, although wear-and-tear items such as brakes, tyres and clutch are still not covered.

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