The low-down on capped price servicing!

Capped-price servicing is one of the buzz phrases doing the rounds in the new car market in Australia. But what does it mean and is it all it’s cracked up to be?

The basic idea of capped-price servicing is to offer buyers peace of mind when buying a new car. Dealerships will give new car owners an idea of how much their car servicing costs will be over a set period, so that they know in advance how much they’ll have to fork out.

Most of the big brands offer capped-price servicing, but the Australian Competition and Consumer Commission (ACCC) has recently investigated the program offered by Kia, and is set to investigate further into what other manufacturers are offering.

The ACCC issued a statement about Kia and its capped-price servicing offer, stating that a provision in its terms and conditions that allowed the price of scheduled services to be increased over time was “misleading”, given the scheme supposedly implied the price of a scheduled service was fixed for the entire term.

In other words, Kia’s conditions said it could scale up the price of a capped service, likely by either linking it to the CPI or passing on increased parts of labour costs, at any time after purchase, couched with the fact that a ceiling — albeit a higher one — would remain in place.

This, according to the ACCC, contravened statements on Kia’s

website starting in 2012 which, in its words, represented to consumers that its scheduled service prices were capped at a maximum price set upon purchase.

Kia has since amended its terms and conditions to ensure that its service prices were “genuinely capped”; written to affected consumers confirming the applicable capped service prices for their vehicle; and offered to refund any amounts paid by consumers above the capped service prices that applied to their vehicle when it was purchased.

Due to the ACCC’s investigation, several car companies have reviewed their capped-price servicing plans and more importantly the terms and conditions. The corporate watchdog has re-iterated that it is “reviewing other offers made by other manufacturers”.

The point is here that a buyer can be influenced by promises of capped, or fixed, price servicing, but that reading through the small print is important. Since the ACCC investigation many car manufacturers posted on their websites that they where reviewing their policies.

Consumers still need to be careful with capped price servicing, just because it’s capped price servicing doesn’t mean it’s the best price.

At Cooper Automotive, we also offer fixed price servicing which in most cases is cheaper than the dealers capped price service plan and without the need to read the small print. 

We also promise that ‘the price we quote is the price you pay…guaranteed’. 

And coming to us for peace of mind has no effect on your dealership warranty…at all.

It’s all about the gadgets

With the recent launch of the new iPhone 6 ‘phablet’ and watch it’s clear that a large portion of our population are crazy about gadgets!  Car manufacturers know this and are all racing to release new model cars with the most innovative and high tech gadgets.

So due to consumers want more high tech features experts are predicting a big year of enhancements to existing technology and more new systems in 2015. All resulting in driving that’s easier, safer and perhaps more entertaining!

One of the brightest things on the horizon are laser headlights. These are smaller, more powerful and more efficient than the LED headlights that were only introduced in recent years. Already fitted to Audi and BMW in Europe they have yet to be approved in the US and Australia. And while you think it may be because they’re too bright, the lamps are fitted with a diffuser system that allow them to keep their bright, white illuminating power while making them safe to view.

BMW laser headlights still awaiting approval in Australia.

Next on our list of effective enhancements is the lane change assist. This isn’t as you might think the alert that sounds when you drift out of lane, this system identifies when traffic is approaching from behind at speed and warns the driver when the signal is given to change lanes.  The Subaru Outback – a very popular in Tasmania – in 2015 will be able to determine when it’s safe to change lanes and advise against a manoevre if it detects another car rapidly approaching. Sensors and cameras monitor approaching traffic in the adjacent lanes – flash an alert on the mirror to advise against the lane change. Could be useful in the rush hour on the Tasman Bridge!

Lane change may assist on the Tasman Bridge.

Technology will also help drivers in bigger more crowded cities to find parking spaces and then locate a car (if you can’t remember where you parked). And once arriving at a parking space, those sensors and cameras again will enable a car to steer itself into a parallel or perpendicular space while the driver operates just transmission and foot pedals.

On an entertainment level, more and more luxury vehicles such as Audi, BMW and Mercedes- Benz will provide in car internet access. But topping that is GM Motors in the US who are fitting most new model cars with a system that provides 3 months of service and / or three gigabytes of data free!

New smartphone integration platforms through Apple CarPlay and Android Auto will transform the infotainment system into a version of the smartphone’s operating system. Making a system more intuitive and allowing voice recognition to play music, use maps and ‘voice texting’   - which used to be known as making a phone call!!

Now just the note to self, if purchasing one of these high tech vehicles, that cars are to get you from A to B safely. So leave the playing with the entertainment gadgets to the passengers on board!!