Virtual Mechanic

Capped price servicing Vs Variable price Servicing

This is attention to detail will make you a very good fleet manager or where it will make you the single car owner a master of detail.

I have been noticing the tricks of the trade, and there are many

You maybe considering the acquisition of a fleet vehicle or a single purchase as a family vehicle and you have decided to leave no stone unturned, right ?

The past known tricks of the trade are the following.

Prolonged service scheduling
The elimination of transmission servicing

Now the new potential trick on the block is fixed or capped price servicing, as apposed to the traditional variable price servicing.

This is more applicable to the fleet manager always looking at ways to minimise the cost of motor vehicle maintenance, you know to look good in front of the boss.

Private buyers this is applicable to you so don’t discard what6 I’m about to explain ok.  

Now lets pick a typical capped price service, if you read carefully it will indicate if you do not achieve the kilometres within a certain time you will be required to have the vehicle serviced every 6 months so this would suit a high kilometre user right ?

Well half right lets take a closer look at the detail
Will your capped price service cover the following items
Drive belts
Wiper blades
Front end alignment
Globes
Etc etc

So why do they call this a capped price service when you get to pay full retail price on the items above.

The question is who made up this marketing proposal, and did this person or team ever think that people would see through the misalignment of the true costs.

Anyone who reads this will clearly understand that a variable service schedule performed within a fair kilometre distance will determine a more realistic analyses of service maintenance cost.

So before you commit to a capped price service, you will need to understand the kilometres travelled per vehicle per year.

You don’t need to understand much about accounting, actuary to know when a service centre paints the floor white, that there is where the revenue is generated.

A vehicle sold from a dealership is not the only way to generate a profile in this competitive market, the real profit is in the lifetime of servicing.

Registration and insurance are the other key stake holders to erode your bottom line.
By Darren Gow-Brown

VM Service maintenance analysis, Toyota Yaris 2010
Make Toyota
Model Yaris
Year 2010

The following vehicle is offered with a fixed priced service maintenance schedule
Toyota is offering a 4 year or 60,000km capped price service (whichever occurs First) conditions apply.

The following spreadsheet will indicate the total cost of the capped price service.

10000Km $130.00
20000Km $130.00
30000Km $130.00
40000Km $130.00
50000Km $130.00
60000Km $130.00

Total Cost $780.00 but consider the following items

But it will not include the following items and please read carefully

It seems the dealer standard is set at offering a capped price service up until 60,000Kms

The capped price service do not include

Replacement of worm wiper blades
Brake system inspections
Headlight realignments
Balance and rotation of wheels for even wear
Valve clearance adjustments
Testing and re-gassing air conditioning.

I’m not sure if belts are included in the capped price service either

The item that concerns me the most is the fact that the Automatic transmission is not indicating a service schedule, but only an inspection every 40,000kms.

The last time I looked on the parts catalogue, transmission fluid is cheaper than a transmission.
Toyota will need to consider a fast reply to my observation.

If the automatic transmission is never serviced then who is taken the risk here, I hope that I’m wrong or a typo
has occurred the transmission is serviced at some point within a 100,000km parameter.

If the transmission is never serviced or the fluid is never changed I will need to conduct a oil analysis to determine the condition of the oil, to ascertain if the transmission will indicate a metal percentage in the oil thus causing premature failure.

If this is the case then the product will only maintain a value inside the warranty period.
The cost task to service and maintain this vehicle may become costly if you need to repair or replace an automatic transmission.

By Darren Gow-Brown,   WWW.Virtualmechanic.com.au

VM Service maintenance analysis, Mitsu Colt 2010
Make Mitsu
Model Colt
Year 2010

The following vehicle is offered with a fixed priced service maintenance schedule
Mitsubishi is offering a 4 year or 60,000km capped price service (whichever occurs First) conditions apply.

The following spreadsheet will indicate the total cost of the capped price service.

15000Km $195.00
30000Km $195.00
45000Km $195.00
60000Km $195.00
 
Total Cost $780.00 but consider the following items

But it will not include the following items and please read carefully

TERMS AND CONDITIONS
Under Mitsubishi Diamond Advantage Capped Price Servicing Program, eligible vehicles are entitled
to receive up to the first four standard scheduled Diamond Advantage Genuine Services (eight Regular
Services for Ralliart and Lancer Evolution vehicles) up to and including the 48 month/60,000km service
carried out by a Mitsubishi Dealer for no more than the applicable Vehicle Service Cap per service.
Where can I have Mitsubishi Diamond Advantage Capped Price Servicing carried out?
Eligible vehicles can only be serviced under the program at authorised Mitsubishi Dealers. Ralliart
and Lancer Evolution vehicles can only be serviced under the program at Ralliart and Lancer Evolution
authorised Mitsubishi Dealers respectively.
What is covered (in/under/by) the Mitsubishi Diamond Advantage Capped Price Servicing?
Under the Program, eligible vehicles are entitled to receive up to the first four Regular Services (eight
Regular Services for Ralliart and Lancer Evolution vehicles) by distance or time (whichever occurs first)
for no more than the applicable Vehicle Service Cap per service. The final eligible service will be either
the 48 month or 60,000km service (whichever occurs first).
The Program covers all items specified under the R egular Service Tables for each vehicle type detailed
in the Service and Warranty Customer Information booklet, including parts, labour, oils and fluids,
workshop supplies and any applicable environmental or waste oil disposal charges.
What is not covered under the Program?
Additional service/maintenance items which are not covered within the Regular Services or the Program
include (but are not limited to):
• Those items identified as requiring more frequent attention depending on operating conditions
(as described in the Service and Warranty Customer Information Booklet).
• LPG additional maintenance items.
• Normal wear and tear and consumable items requiring periodic maintenance
(e.g. fuses, brake pads , wiper blades, batteries, tyres, wheel alignment adjustment etc.).
• Air conditioner pollen filter replacement.
• Fluids, additives and treatments not specified in the R egular Service Tables.
• Accident damage to any body, chassis or driveline components.
• Adjustments not specified in the R egular Service Tables.
• Additional maintenance and repairs which may be recommended by a Mitsubishi Dealer to suit your
individual driving characteristics.
If any additional service/maintenance work is required, you will be informed prior to that work being
undertaken that the additional service/maintenance work is not covered under the Program and what the
additional cost (if any) will be for performing that additional service/maintenance work.
When does the Mitsubishi Diamond Advantage Capped Price Servicing become effective?
From the original warranty start date recorded in the Service and Warranty Customer Information
booklet for each eligible vehicle.
What is the term of coverage of Mitsubishi Diamond Advantage Capped Price Servicing?
An eligible vehicle’s participation in the Program will expire upon any of the following three conditions
being satisfied:
a. The performance or expiry of all R egular Services covered under the program.
b. The expiry of 4 years from the original warranty start date.
c. 60,000km being travelled.
When can a Regular Service be carried out?
Service intervals are for a given period of time or distance (12 months or 15,000km, whichever occurs
first except for R alliart and L ancer Evolution vehicles which are 6 months or 7,500km). Even if a vehicle
isn’t driven far enough to cover the nominated distance between service intervals, Mitsubishi vehicles
should still be serviced according to the time period shown on the R egular Service Tables.
Each Regular Service can be claimed within 7,500km either side of the specified interval (3,750km
in the case of Ralliart and Lancer Evolution vehicles). If the distance travelled is low, services should be
undertaken according to the time intervals. A specified time interval service can be claimed 6 months
either side of the specified time (3 months in the case of Ralliart and Lancer Evolution vehicles).
Note: Claims cannot be made for both a specified kilometres service and the corresponding time interval
service separately.
Is the Mitsubishi Diamond Advantage Capped Price Servicing program transferrable?
Entitlements are transferrable with ownership and remain with the vehicle until they expire pursuant to
the terms of the Program. Entitlements cannot be transferred to any other vehicle.
Who is eligible for Diamond Advantage Capped Price Servicing?
Retail customer vehicles are eligible under the program. Government and Rental vehicle customers are
not eligible and additional exclusions may apply. Contact your Mitsubishi Dealer to confirm eligibility.
Mitsubishi Motors Australia Limited (MMAL) may add or remove vehicles from the Program, or vary terms of the Program,
from time to time without notice.
Ask your dealer for full details and conditions.In conclusion in my opinion until I hear otherwise a capped price service schedule offered by a car manufacture is by far the most secure option to maintenance a high standard of motor vehicle servicing.

The added benefit of having your vehicle service at any Mitsubishi dealer is the knowledge that most technicians are factory trained, as well as a dealer service stamp in your service history should maximize the resale potential

By Darren Gow-Brown, WWW.Virtualmechanic.com.au