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Volvo Cars Australia has slashed its service pricing, with the brand introducing a new pared back Fixed Price Service Plan range for its entire model line-up.
The new service price plans span three years/45,000km, with maintenance intervals set at 12 months/15,000km.
The newly launched S60, V60 and entry-level XC40 models have the most affordable plans, set at $1595 for three years/45,000km. All of these models run petrol engines, though the S60 and V60 also have plug-in hybrid models, and these are covered under the same plan.
The petrol-powered XC60 and XC90 models are slightly dearer, priced at $1795. That’s for the regular petrol versions, and the T8 PHEV models, too.
Beyond that are the diesel models - XC60, XC90 and V90 Cross Country - all of which are covered under an $1895 plan.
Volvo Cars Australia managing director Nick Connor said feedback from media and customers was what pushed the brand to take action on its service costs - some of which were quoted as being as high as $9500 for five years of comprehensive cover.
“Things are seldom perfect in any world, and a number of you have told us and told our potential customers that our servicing costs are relatively too high,” said Mr Connor. “We’ve looked at it and responded, and we’re announcing today we will introduce three year service plans across our model ranges.
“It’s a comprehensive offer, at an attractive price point, and I think it removes one of the very few objections that we’ve made about our products.
“Our dealers recognise we have to be competitive, and we now have very competitively priced cars and very competitively priced fixed price servicing, so people know what they’re getting into when they buy a Volvo. That reinforces the message of safety and reliability we’ve been trying to get out there,” said Mr Connor.
However, the brand stopped short of upsetting the luxury market equilibrium when it comes to new car warranty plans, as it will persist with a three-year/unlimited kilometre plan for its range. That matches Audi, BMW and Mercedes, while Lexus offers a four-year/100,000km plan. Fledgling brand Genesis has a five-year warranty plan - though that brand seemingly doesn’t rate a mention in Mr Connor’s mind.
“None of our premium competitors have gone for a permanent five-year warranty,” he said. “So we need to establish if we’re a leader or we’re a follower. We’ll keep an eye on it and see what happens in the market, but I don’t actually think it will sell a tonne more cars for us, but if that’s what the market demands… I’m not ruling it out.”