VW launches capped-price service

The imminent arrival of an all-new Golf has triggered the overdue introduction of capped-price servicing at Volkswagen.

More than five years after Toyota slashed the unpredictable costs of routine new-car servicing with a fixed-price plan - although consumer legislation means it must be called capped - Volkswagen is finally joining everyone from Nissan to Ford, Holden, Hyundai and Kia.

It says there has been no customer pressure to make the move and denies it has lost any sales to rivals because it could not offer certainty on servicing, even though there has been a major Carsguide campaign to apply pressure at Volkswagen.

“We have had a lot of negative coverage in the media,” admits Volkswagen spokesman, Karl Gehling. The Volkswagen program covers all of its passenger models and runs for six years, doubling the deal in its new-car warranty.

Unlike some brands, which set the service intervals at six months or put the most-costly servicing just outside of the capped period, Volkswagen says its deal is transparent.

“We always said we were looking at it. There was work to do to ensure we had the right package and we wanted to make sure we offered a very competitive product,” says Gehling.

“It runs for six years and gives a very comprehensive coverage for any owners, well beyond the normal warranty period.” Volkswagen says it has been working on the program for more than 18 months and, after trailing it on the baby Up from October last year, is confident it has the right package.

It will not discuss resistance from dealers, or the cost of the program. “We're not subsiding it. That's the accurate representation of our running costs,” says Gehling.

First-year services, for 12 months or 15,000 kilometres start at $280 for the Up and $519 for a V8 turbo diesel Touareg. At the other end, the figures for 90,000 kilometres or 72 months run from $391 for the Up to $988 for the Touareg.

Showroom shoppers can even calculate the service costs through the coverage period, which range from $2440 for the Up to $4091 for an all-wheel drive Touareg V6 diesel.

“There are no hidden costs involved in the servicing. And we give people a guarantee, not just on the purchase price, but also the running costs for the first six years,” says Gehling.

This reporter is on Twitter @paulwardgover