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Volkswagen to offer fixed price servicing

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    Volkswagen introduced fixed price servicing on its budget-priced small car, the Up, last October.

Capped-price scheme to be introduced across the Volkswagen range by year end.

German car maker Volkswagen will join a growing number of brands offering capped-price servicing on its new vehicles in a bid to reverse what the company says is a “perception” that its servicing is expensive.

The move is designed to thwart the growing number of smaller workshops who’ve been embracing customers disgruntled by Volkswagen dealership service costs. They often use the same genuine parts and technical equipment but charge less than half the dealership rate.

Volkswagen introduced fixed price servicing on its budget-priced small car, the Up, last October and plans to offer the same certainty to buyers of all its new cars by the end of this year, possibly starting with the new Golf Mk7 due in April.

The managing director of Volkswagen Australia, Anke Koeckler, told News Limited today: “We are working on it. Somewhere in the first half of this year we are coming back to you and announcing capped price servicing. The feedback so far from dealers and customers [from the VW Up program] has been very positive. I think it would help us also in the perception around the customers.”

Unlike some other capped-price servicing programs which require six-monthly visits, Volkswagen only requires a visit to the dealer every 12 months or 15,000km, and the prices are locked in for six years – twice the period of the warranty. Some other brands don’t even cover the warranty period.

Some fixed-price servicing deals are subsidised by car makers by setting aside part of the purchase price and reimbursing the dealer when the car is presented for service. However, Volkswagen says it does not plan to subsidise its fixed price servicing plan, matching Nissan, Ford and Kia. The downside to this is that the customer ends up paying a little more for each individual service.

But if the Up experiment is a guide, Volkswagen has one of the most competitive non-subsidised service plans in the market, even though the price changes depending on the service. “My preference would be not to subsidise any capped price servicing. It would reflect the honest parts and service costs,” Koeckler said.

Volkswagen Up service costs:

Interval in km / months Price inclusive of GST
(whichever comes first)
15,000 or 12 months $280.00
30,000 or 24 months $280.00
45,000 or 36 months $332.50
60,000 or 48 months $369.50
75,000 or 60 months $280.00
90,000 or 72 months $332.50
Total $1,874.50

This reporter is on Twitter: @JoshuaDowling

 

Comments on this story

Displaying 3 of 4 comments

  • Apparently not all Volkswagen service centers follow this fixed pricing scheme. As I just received a $333.00 quote from VW to do the first service on my 2012 Up!

    Wayne of Perth Posted on 11 November 2013 3:48pm
  • a bid to reverse what the company says is a “perception” that its servicing is expensive. It's not a perception, it's the reality. Try $1000+ for a standard, 60K km Golf Mk6 service. I know first hand, as an owner.. its the labour rate that is the killer. And mine did not require the gearbox being attended to this time, the unlucky owners that do (carss with the 6sp DSG) have to fork out an additional $500. I hope Anke Koeckler gets the bean counters to really sharpen their pencils with the new Mk7.. If you want realibility plus value (in every sense of the word) however, go Japanese.. I also know first hand..

    Steve of Sydney Posted on 01 February 2013 6:39pm
  • Well VW that is a move in the right direction. Also 12month or 15k intervals is much better than every 6 months! No offence meant but going twice a year is a pain, esp when there are multiple cars in the family.

    JoeR_AUS of North Ryde Posted on 31 January 2013 8:27am
  • So $280 at the 15,000 or 12 month is considered "value?" By whom? This service is basically an Oil and Filter change, plus a check of the brakes and lights. Time taken will be about 1 hour. If this is the best price they can do, then people will still take their car to the smaller workshops where they will get the service done for about $160. It's time the main dealers gave value for money, and stopped trying to "up sell" a service.

    TheRealist of Perth WA Posted on 30 January 2013 10:50pm
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