Who just launched Australia’s largest capped price car servicing scheme?

HOLDEN can now guarantee the service cost of a car made in 1948. Ford is handing out free loan cars. What’s the catch?

People Trust Holden, The Restoration. (Australia)

HOLDEN is about to introduce the largest capped price servicing scheme in Australia, setting the routine maintenance cost for every car sold since the very first model unveiled by then Prime Minister Ben Chifley in 1948.

The new scheme covers more than 2.5 million Holdens on the road nationally and is believed to the first of its type in the world, dating back 67 years — but there’s a catch, with the capped price servicing scheme for historical Holdens likely to cost more.

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Service has become the new battleground for the big brands because, as modern cars get safer and there are fewer differences in technology between models, all that’s left to sway buyers is the “customer experience”.

Toyota pioneered capped price servicing in 2007, but all Top 10 brands (and some European marques) have since followed suit.

However, the only other car brands to offer capped prices for the servicing of historical models is Hyundai (which in September 2014 announced cars sold since 1986 would be covered under the scheme) and Ford (which has menu pricing for every car since 2007).

The Holden price list says a routine service on such classics as the original FX Holden from 1948, the EH Holden from 1964, and the HQ Kingswood from 1972 costs $299, which is dearer than the original 1978 Holden Commodore ($199) and the latest 2015 Holden Commodore ($239).

Savvy do-it-yourself drivers can do an oil and filter change for about $50, or a spark plug change for about $20 (as they are much cheaper than spark plugs on modern cars).

Prime Minister Ben Chifley unveils the new Holden 48-215 in 1948. Photo: Supplied

“While some owners of classic Holdens may choose to work on their cars themselves, our lifetime capped price servicing program gives every owner of any Holden price certainty and transparency at every Holden dealership in Australia,” says Holden’s executive director of aftersales, Michael Filazzola.

Classic Holden 1964 brochure. Photo: Supplied

The overhaul is part of the industry’s plan to bring customers back to dealerships rather than visit independent workshops.

“Our research says that there are a lot of customers choosing not to service at all at the moment because they feel that that’s a cost that they can’t afford, or they want to spend the money elsewhere. We want to encourage customers to come in,” says Narelle Stack, Holden’s director of customer experience.

Earlier this month, Ford took the unprecedented step of offering free loan cars to its service customers as part of a national six-month trial.

Now Holden says it is considering matching Ford’s offer of a free loan car for its service customers. Other car brands may follow.

Classic Holden 1978 Commodore brochure. Photo: Supplied

Meanwhile, the ACCC will investigate all capped price servicing offers across the industry after finding a number of Kia dealers had charged more than the capped price.

Certain dealers across all car brands have become accustomed to “upselling” service items beyond what is on the rate card.

According to industry analysts Deloitte, service and parts — not new-car sales — make up for the majority of a dealership’s profit.

Furthermore, not all capped price servicing schemes are created equally.

The time and distance intervals between services vary, and prices range from $140 to more than $500 for a routine visit.

Some brands don’t include all service items on their menu pricing, while others list some essential items in another table, in the hope that customers don’t read the extra detail and only see the cheaper price.

Holden: driving your dollar further back in time

1948 Holden “FX” 48-215: $299 (Essentials service)

1964 Holden “EH” Special: $299 (Essentials service)

1972 Holden “HQ” Kingswood : $299 (Essentials service)

1978 Holden “VB” Commodore: $199 (Essentials service)

2014 Holden “VF” Commodore: $239 (Full handbook service)

Source: Holden

This reporter is on Twitter: @JoshuaDowling