Buying a new car is often the other significant purchase in your life besides purchasing your home. To help maintain your car and ensure it lasts as long as possible, you’ll want to keep up with regular servicing. To help with the cost of the ongoing servicing, which can run into the thousands, some dealers offer capped price servicing (CPS) with your car purchase. CPS is a way to help you maintain your car by offering deals when getting your car serviced at certain locations.
Understanding what capped price servicing is and how it can save you money before you make the purchase will help you make an informed decision.
According to the Australian Automotive Aftermarket Association (AAAA), CPS is a routine maintenance program. It offers new car owners fixed pricing on some servicing requirements if performed at locations within the dealership network for a period, provided the terms and conditions are met.
CPS is a broad term used in the car industry to refer to a servicing program offered by car manufacturers. Under this program, the maximum cost for every scheduled service is pre-determined and doesn’t come as a surprise when you receive the invoice. Some companies may offer CPS during the warranty period only, while others may extend it beyond the warranty period.
A price list is usually available with a CPS for scheduled services when you buy a new or certified used car. This price list shows you the price for each service that is locked in thanks to the CPS, subject to certain terms and conditions. You’ll need to ensure you’re fulfilling the terms of the agreement, which includes getting your car serviced in line with the manufacturer’s timeline and at their dealership.
Generally, the CPS package includes general services at the one-year or 15,000km mark for your car. It includes basic services, such as filter and oil change, brake fluid replacement, and replacing the pollen filter with genuine parts. The package also includes labour costs related to any safety inspection and diagnosis of issues.
It’s also likely that scheduled major servicing will be included in the CPS package. This includes replacing brake components, spark plugs, certain drive belts, and fuel filters. Before you purchase the car and choose the CPS package, ensure you read the company’s policy to know what is included in the minor and major packages.
Every car manufacturer has its own package that has different inclusions and exclusions. Most cap car price service packages exclude regular wear and tear items and any significant replacements or repairs. Other items that are often excluded include parts that degrade over time and usage, like light bulbs, engine components, washer blades, and belts. The package may also exclude damages due to a crash, replacing the tyres, wheel alignment, and repairing aftermarket parts not manufactured by the company that manufactured the car.
There are some companies that cover wear and tear items and therefore, reading the CPS policy beforehand will help you make a more informed decision.
There is no right or wrong answer to decide whether or not capped price servicing is worthwhile. It's sensible to compare the cost of benefits within the CPS package with the cost of taking your car to a local mechanic. The final decision will largely depend on your personal situation, comfort, and what is being offered by the manufacturer.
Before CPS became available, many Australian car owners didn’t have the awareness or the time to shop around dealerships and often paid more for servicing their vehicles. One of the biggest advantages of CPS is the transparency offered for the regular services recommended by the manufacturer. You’re able to plan ahead and budget the expenses and potentially save thousands of dollars with the price restrictions implemented by the manufacturers.
The other consideration may be how long the CPS is available, which depends on the manufacturer. Some car companies may offer capped pricing for three to five years, similar to the manufacturer's warranty, while a few others may provide it for up to seven years. There are also some car manufacturers who offer lifetime capped price servicing.
You may also find that some companies allow you to prepay the servicing costs when buying the car. This allows you to bundle these into the finance deal you take out to purchase the car. Other companies may also provide the exact details on what is included in each service and what parts and labour would be required.
Having understood the capped vehicle serviced meaning, don’t lock yourself into a contract before comparing the pricing. Some independent mechanics may provide logbook servicing at lower costs compared to the CPS package offered by the dealer.
It’s also worth noting that CPS only covers the cost of your regular car servicing. If your car is involved in an accident, CPS is unlikely to cover the cost of repairing the damage. A comprehensive car insurance policy could be worth checking if you’re looking for a financial cover for damages caused to your vehicle due to an accident or natural events like storm or fire (as specified in the car insurance policy).
This article was reviewed by Peter Terlato before it was published as part of RateCity's Fact Check process.
