Is capped-price servicing actually capped?

Car Servicing Industry news Car News
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Joshua Dowling

National Motoring Editor

2 min read

Capped-price servicing is intended to provide peace of mind to car buyers and keep servicing costs in check.

But a change brought about following an investigation by the Australian Competition and Consumer Commission may unwittingly have the opposite effect.

The ACCC recently took one big brand to task because the price of each service was subject to change over several years, generally in line with inflation.

In reality it meant the possibility — not all prices went up — of prices rising by an average of 2.5 per cent a year, depending on the materials involved in each service.

Now that the prices are harder to find, the car makers can creep them back up again if they choose

But the net result of the ACCC action so far is that some brands have made it harder to get a servicing quote online.

On some sites, you must enter the car’s Vehicle Identifying Number (VIN) to figure out exactly how much each service costs.

This may be more accurate but it means potential customers have no idea when comparing brands.

And now that the prices are harder to find, the car makers can creep them back up again if they choose.

If the consumer watchdog really wants to keep pressure on service costs, it needs to find a better way of enforcing its regulations.

The authority could start by requiring all car companies to publish service prices online, without the need for a password or vehicle identifier.

Photo of Joshua Dowling
Joshua Dowling

National Motoring Editor

Joshua Dowling was formerly the National Motoring Editor of News Corp Australia. An automotive expert, Dowling has decades of experience as a motoring journalist, where he specialises in industry news.
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