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.

Tips for Buying a Used Car

Buying a used car is a great option if you're shopping within a limited budget. However, a used car will usually need a rigorous background check to ensure that you get a good deal. 

It's usually a good idea to look for a late-model vehicle that has not clocked up many kilometres. There is a good chance that, in addition to being in better condition, it will also still be covered under the manufacturer's warranty. Later models are generally better as the rate of depreciation is slower, making it even cheaper than a comparable brand new car while offering similar features.

Recent models will generally qualify for an extended warranty program, which protects you in the case that something goes wrong. It's usually advisable to purchase a used car from a dealer, as they often have the best used cars on the market - dealerships will often shift cars with huge mileage or other major problems to road side lots or smaller outlets that specialise in budget cars. 

In order to get the best deal, compare a few models and their prices at different dealers. This not only gives you an idea of the prevailing price in the market, but also provides you with options in case you find something better than you were originally looking for within your budget. 

Another factor that you need to consider is potential maintenance costs that might be in addition to the purchase price. Is the vehicle due for a major - and potentially expensive - service? How long until the brakes need fixing? Does it have overdue mechanical repairs? Has it had major body repairs which have been poorly done?

Just how good a car is it?

If you are not sure, remember that Cooper Automotive offers pre-purchase inspections.

We can carry out a thorough vehicle inspection accompanied with a full written report prior to you buying, which could potentially save you thousands of dollars down the track. One of the best tips you'll ever get for buying a used car is this: talk to an expert before you buy!

New Car Dealership servicing

Buying a new car is exciting, but in the heat of the moment it can be easy to miss some important information. 

Your dealer may not have mentioned it, but did you know that you have options when it comes to getting your new car serviced?

Some buyers worry that they will have to pay for expensive dealership servicing to maintain their new car's manufacturers warranty.

But the truth is this: you DON'T need to rely on dealership servicing!

Here are the facts about your manufacturer's new car warranty:

• It's your car, so YOU can choose where you have it serviced
• A Cooper Automotive service will NOT void your manufacturers statutory warranty
• Cooper Automotive strictly follows the manufacturers instructions and recommendations when servicing YOUR vehicle
• Cooper Automotive only use genuine and high quality direct fit service parts
• Cooper Automotive will give your handbook the stamp of approval

So to keep your new car's warranty intact, all you need to do is bring the car in for a service by it's service due date, or before it reaches it's nominated amount of kilometers - whichever comes first. It's that easy!

Consider your options - and don't pay more than you need to!