What is Capped Price Servicing?
Capped price servicing or fixed price vehicle servicing (as it is commonly known) is a phenomenon that has come about in recent years. It is a customer service retention tactic being employed by some manufacturers to keep customers attached to the dealerships as long as possible.
It should be known, that it has been under investigation by the Australian Competition & Consumer Commission (ACCC) for a number of years now, due to its misleading nature and also the false information being put out by some of the manufacturers to increase its use by consumers.
Does fixed price servicing include everything?
The most common complaint we see is that even though a customer has been taking their car to a dealership for it’s regular servicing, it has not actually been getting serviced as per the manufacturers specifications.
What does this mean? Well many people assume that the ‘capped price servicing’ is the same as the standard ‘log book servicing’. Unfortunately, in most cases it is not the same. This can cause issues later if something goes wrong or a part needs replacing that should have been included in the standard log book servicing, but wasn’t in the capped price servicing.
Dealerships are regularly omitting parts and/or labour that would drive the price of the service up. They instead try to up-sell these as extras, when in fact they are a part of the manufacturers recommended service schedule – the log book servicing.
The manufacturers definition
The following is an excerpt from a manufacturers definition of what is included in the capped price service.
Normal wear and tear consumable items and parts requiring additional maintenance (including but not limited to clutch linings, brake discs and pads, brake linings, wiper blades, globes of all types (including Bi Xeon and LED), fuses, trims, brakes, diesel particulate filters, catalytic converters, all belts, water pumps, tyres, spark plugs, filters, Satellite Navigation update disks and all other parts of your vehicle that have been subject to normal wear and tear);
As you can see from the above definition, parts that should be included in normal service can be omitted where they see fit. This is where you will see variations in the items included in your capped price servicing at different dealerships.
Before comparing your regular car servicing price, we recommend you verify what is actually included in the service being provided and quoted for… is it the full log book servicing to the manufacturers specifications? Or are some parts not included? And if so, which ones? That way you can be sure that you’re comparing apples with apples so to speak.
Where can I get my car serviced?
The ACCC investigation is also looking into manufacturers spreading misinformation about who can service your vehicle and what implications it has for your warranty.
Under Australian consumer law, the owner of a vehicle has the right to choose who maintains their vehicle, as long as it is maintained to manufacturer specifications in a licensed workshop by qualified mechanics using quality parts. Then the factory warranty entitlements will not be affected (regardless of what the dealerships will try and tell you).
What to ask Before Booking your Next Service
- Ask for a fully itemised quote Before you agree to any service, ask the workshop to provide a written list of exactly what is included. A transparent workshop will have no issue providing this, if they’re vague or reluctant, that’s worth noting.
- Confirm whether consumables are covered Brake pads, spark plugs, filters, and wiper blades are often excluded from capped price services, even though they’re part of the manufacturer’s recommended schedule. Ask specifically whether these are included or whether they’ll be quoted as extras.
- Find out how it affects your warranty. Some dealerships imply that capped price servicing is the only way to keep your warranty intact, this is not accurate. Under Australian consumer law, your vehicle can be serviced by any licensed workshop to manufacturer specifications without affecting your warranty. Prestige and Performance perform full logbook servicing to manufacturer specifications.
- Check that your logbook will be stamped A logbook service should always result in your logbook being stamped and dated. This protects your warranty entitlements and is essential if you plan to sell the vehicle. If a workshop can’t confirm this upfront, ask why.
- Ask what grade of parts they’re using Not all replacement parts are equal. A lower service price can sometimes mean lower quality parts. Ask whether the workshop uses genuine, OEM or quality aftermarket parts, and what warranty they offer on parts and labour at Prestige and Performance, all work and parts carry a 2-year/30,000km warranty.
If you have questions about your vehicle’s service history or want to switch to a workshop that does it properly, give us a call. Reach our Coorparoo team on 07 3324 0611 or Capalaba on 07 3180 1888, we’re happy to explain exactly what your car needs and what’s included.
Frequently Asked Questions
Why do manufacturers offer capped price servicing in the first place?
Capped price servicing is designed to keep customers returning to dealerships for as long as possible by presenting servicing costs as predictable and convenient.
What should I ask before booking a capped price service?
Ask for a complete itemised list of what is included, whether consumables are covered and if any recommended logbook items will cost extra.
Can skipping essential service items affect my car later on?
Yes. Missing scheduled replacements like spark plugs, filters or belts can cause premature wear, performance issues or costly repairs down the track.
Is capped price servicing available for European cars like BMW, Audi or Mercedes-Benz?
Some European manufacturers do offer capped price servicing programs, but coverage and inclusions vary significantly between brands and model years. As with any capped price offer, it is important to confirm exactly what is and is not included before assuming it matches a full logbook service. If you are unsure whether your European vehicle’s service history meets manufacturer specifications, we are happy to review it and advise.
Will switching from a dealership to an independent workshop affect my service history records?
No. Your service history is recorded in your logbook, which belongs to you and your vehicle, not the dealership. As long as each service is stamped, dated, and carried out to manufacturer specifications by a licensed workshop, your history remains complete and your warranty entitlements are unaffected. We stamp and date every logbook service we carry out at both our Coorparoo and Capalaba workshops.
