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Home > Need to Know about New Car Servicing
NEW CAR SERVICING ITEMS MENU: For everything from an oil and filter change to Logbook Service for new and near new cars under warranty. HAE is the auto technology master. We do it once and do it right. Warranty Safe.
What YOU NEED TO KNOW about new car servicing: HAE is an Automotive R&D training lab upskilling Technicians and Mechanics to keep your car performing like new.
Your car service will cost you less at Highway Auto because we are not a dealership or a franchise, lowering operating costs. HAE is a Rockhampton family business established in 1966. We are an automotive technology and training operation that is high on automotive engineering skills and low on customer charges compared to franchise operators. So shop local and be rewarded.
Quality assured warranty safe logbook service best & cheapest quality assured Factory-trained technicians & mechanics for A/C, Electrics, and Mechanical service with a smile
Choose Highway Auto your independent new car servicing specialist, get value with the cheapest options. Escape dealer price gouging and new car Warranty Traps.
You pay less and get top-quality servicing per the manufacturer's schedule and update recommendations.
Alternative names for vehicle services are MINOR SERVICE which is the basic building block for all vehicles services. Then there is MAJOR SERVICE as the name suggests a comprehensive and very necessary service. New car owners would be familiar with the dealer reference to LOGBOOK SERVICE where the manufacturer has set out a best case servicing program for a new vehicle.
How often should you service your Car? Your Car is designed to be driven. If it sits in your garage with little or no use or makes only short trips, it must be serviced a minimum of every six months regardless of the Kilometers on the speedo.
This is because the engine oil deteriorates, the fluids change to a deteriorated state, and the battery and tyres deteriorate, too. HAE Rockhampton has a particular service plan for low-use vehicles to ensure they are maintained in good health. However, if you are doing thousands of kilometres, these vulnerable components require more frequent servicing for different reasons. HAE Free Customer Support Services
Service your vehicle now and PAY LATER with our interest free easy payment options. Choose from HUMM PAY or ZIP PAY or AFTERPAY options to pay for your repairs and servicing over a period best suited to you.
Customers who have their cars serviced at Highway Auto are entitled to periodic under-bonnet checks, inspections and tyre inflation.
Bought a new car recently? You may wonder if you have to get it serviced at an authorised dealership to keep your warranty intact. If so, you're not alone.
Parliament tears down new car repair monopoly: CHOICE
New laws mean manufacturers of new cars will have to share repair information with third party repairers. Australians will be able to turn to their own trusted mechanic and will no longer be forced to get repairs from new car dealers under laws passed by the federal parliament today.
The new laws will force new car manufacturers to offer the same diagnostic, repair and servicing information they give to their own dealers, to third party repairers which they can buy at fair market price.
"Today the Australian Parliament has torn down the new car repair monopoly," says Alison Elliott, Consumer Rights Expert at CHOICE.
"When your car needs fixing, it should be your choice as to who repairs it. The complicated nature of modern car design means many manufacturers have locked out third party repairers from helping people because they have not had access to the information necessary to fix new cars. Whether you trust your local mechanic or the original car dealer more, the choice should be yours," says Elliott.
New Car Dealer Monopoly Ends You are Free to Choose Report From CHOICE. Go to this link for more information on your freedom.
While you may get piece of mind knowing you won’t get slugged with a huge service bill after buying a new car, make sure you are aware of the devil in the details.
Suppose you are locked into a long term Capped Price Service contract? Imagine: The cost of labour hikes through the roof, parts and oils and other inputs climb out of sight? Does the dealer stick to the agreed price or does he renegotiate your contract or do the easy way and skimp on oils and materials? Read more on the link below.
Capped Price Servicing and what you need to know.
Highway Auto's agreed Price system requires no contract, unlike the many Capped and fixed Price advertisements. Thankfully the HAE Approved Price system guarantees your car gets everything it should have. So yes, you get what you pay for and that's all you pay with the HAE Agreed Price Service.
After all, servicing your Car is about preventative maintenance or paying for something bad not to happen.
MENU - Auto Air-conditioning MENU - Brakes. MENU - Vehicle Electrical Systems. MENU - Mechanics & Servicing. MENU - New Car Servicing MENU - Radiator & Cooling. MENU - Car & 4WD Servicing
PREVENT CAR THEFT with HAE lockout system. Prevents the Engine from running Priced under $700 most vehicle makes.
Service your vehicle now and PAY LATER with our interest free easy payment options. Choose from HUMM PAY or ZIP PAY or AFTERPAY options to pay for your repairs and servicing over a period best suited to you.
Contact Us, Find Us, See Our Map, Get a Quote, Make a Booking
The Australian Competition and Consumer Commission (ACCC) says "a manufacturer's warranty is a promise to the consumer that the vehicle will be free from defects for a certain period of time". While a manufacturer can have certain requirements in its warranty terms – such as ensuring any servicing is carried out by qualified staff, according to the manufacturer's specification, and that appropriate quality parts are used where required – it can't require you to service your vehicle through an authorised dealer to keep your warranty intact. You are free to make the choice: Pay the dealer premium, or find a garage outside of the dealer network.
"Provided you service the vehicle in accordance with any such requirements, the warranty will remain valid. If the manufacturer's warranty states that the vehicle can only be serviced by an authorised dealer, this may raise concerns under the Competition and Consumer Act," the ACCC has said in written guidance to the automotive industry.
But that message doesn't always seem to be getting across: we've come across examples of dealers flouting the ACCC guidelines and saying you should service your car at an authorised dealer. We also found language in logbooks that strongly implies you'll be voiding the warranty if you don't take it back to the dealer for servicing.
Given that car dealers don't make profits on car sales alone according to industry research, it's not surprising that they attempt to lure buyers back after the sale to pay for servicing and expensive "original" parts.
In fact, dealers depend on servicing, parts, car finance and insurance to make their profit margins. A 2018 motor industry report from Deloitte found on average, nearly 30% of car dealer's profits came from servicing, while dealers lost money on new car sales.
One lobby group for some major dealerships explained in a submission to government how their business model works. "By generating sales volumes, dealers create opportunities to build customer relationships which result in a future stream of revenue. Such revenue includes adding and installing aftermarket accessories on the new vehicle sale, dealership finance and insurance, and servicing the customer's vehicle throughout the life of the car."
Choice called 24 Toyota, Mazda and Holden dealerships across Australia in April 2018 to get an idea of what consumers are being told about their rights in relation to servicing and warranties. Three dealers gave them completely incorrect advice, saying we had to return the vehicle to a dealer to maintain the warranty. A number of others gave us questionable advice, or only told us we could go to an independent mechanic after being pushed on it.
While most dealers generally said the right thing about warranties and servicing once pushed, many didn't offer this information upfront and resorted to sales tactics to promote dealer servicing, such as capped price service deals and extended warranties, both of which usually lock you into servicing your vehicle at the dealer. Many used terms such as "advisable", "recommended" and "preferred" in relation to dealer servicing, which could further add to the impression that using an independent mechanic may result in problems.
Many dealers also angled for dealer servicing by saying genuine parts were either required or highly recommended in order to keep the warranty intact. The problem here is that genuine car parts can be much more expensive than their aftermarket counterparts. In fact, when we looked at this issue back in 2016, we found details of the mark-up being as much as 60% even though the parts are often identical and some from the same source.
But you don't have to pay the price premium on parts to be covered. The ACCC's guidance says that provided you use quality parts, your car manufacturer's warranty won't be voided. If a non-genuine part is used it won't be covered under the manufacturer's warranty, but it would be covered under the warranty of the part's supplier and/or Australian Consumer Law. To be fair, despite the initial response of dealers, when pushed many did clarify that it'd only be the actual part that wouldn't be covered rather than the whole warranty being voided.
Another common dealer lock-in tactic was to say that independent service agents won't be able to offer all the software updates that are required. One dealer told us: "Legally you don't have to [bring it back to the dealer] but independents can't update the car which needs to be done pretty much every service". Executive director of the Australian Automobile Aftermarket Association (AAAA) Stuart Charity says independent mechanics generally have enough information available to be able to do a scheduled service. But cars are becoming increasingly computerised and car manufacturers aren't sharing enough information when it comes to repairs and software updates, he says. This is despite car industry bodies signing a voluntary agreement on access to service and repair information in December 2014, which said they would make available to independent repair shops all the necessary information.
This software is available to experienced savvy independent car servicing specialists.
Choice took a look at a number of logbooks in April 2018 to see what messages were being conveyed to consumers. The upshot? We won't blame you if you've been led to believe you have to take your vehicle back to the dealer for servicing.
A number of brands include a space on the service pages indicating that it should either be stamped and/or signed by an authorised dealer. For example, one Ford logbook we looked at has a space for an "Authorised Ford Dealer Log Book Service Verification Stamp" and also has a checklist asking the mechanic to tick that they are an Authorised Ford Dealer Service Department. Mazda's logbook asks for a dealer validation stamp and Hyundai's asks for a dealer's signature. None of these things are required to keep your warranty intact, but the logbooks certainly make it look that way. What's the law?
The ACCC has clearly said: "Even if the service page boxes in the logbook are labelled in this way, an independent repairer may sign or stamp the relevant page of the customer's service logbook (once they have completed the service) without it affecting the manufacturer's warranty provided any other requirements are met (i.e. the service is carried about by qualified staff etc.)."
A number of car manufacturers offer capped price service deals when purchasing a new car. Locking in a set servicing price may sound like an appealing offer, but check what you're getting before you sign on the dotted line.
In early 2016, the ACCC took action against Kia over its capped price servicing program. The ACCC said that the car manufacturer had made representations on its website that "the capped price applicable for each service is the maximum you will pay for your scheduled service". All the while, Kia's terms and conditions had allowed scheduled service prices to be amended at any time, and service prices had in fact been changed by Kia four times since 2014.
Choice took a look at a few servicing deals to find out what was going on and found it hard to see the benefit in some cases. The offer of Hyundai's Lifetime Service Plan, for example, is fairly ambiguous. One of Hyundai's explanations says it "allows the reassurance of knowing in advance the maximum cost for each scheduled service". Hyundai specifies the maximum price applicable when you request a service quote online. But these quotes may change without notice and are only valid for an effective period. When we got a quote, it was only valid for 30 days. So we were left wondering what the "Lifetime" in Hyundai's Lifetime Service Plan actually means. Hyundai's terms explain that the entitlement to receive the scheduled service for a price not exceeding the published price "applies for the lifetime of the vehicle".
So what is Hyundai actually offering? When Choice asked Hyundai for more details one of their spokespeople told them that prior to these types of programs being introduced, service costs weren't standardised and they varied markedly across their dealerships in Australia. "Our Lifetime Service Plan fixes that issue, and gives customers a very clear picture of what the prices will be going forward for servicing. Yes, prices may increase slightly due to inflation and that needs to be explained in the T&Cs," the spokesperson says.
Choice spoke to a number of dealers who said cars needed to be serviced at the dealer the whole time in order to keep the extended warranty. The ACCC guidance says that extended warranties usually kick in at the completion of the manufacturer's warranty. "A common requirement of these warranties is that the vehicle must be serviced by the dealer offering the warranty. Imposing this requirement on the owner is permissible," the ACCC says in its guidance.
Car makers are protecting inflated servicing costs by engaging in conduct that limits industry competition, a draft report from the ACCC has revealed.
The Australian Competition and Consumer Commission's (ACCC) yearlong investigation into the new car market has found manufacturers charge an average mark-up of 64% on new car repair and servicing, and that car makers withhold information from independent mechanics in a move that ensures the margins remain thick.
Car dealers made an estimated $64 billion in the most recent financial year, with the repair and servicing sectors found to be worth $24.8 billion. "Manufacturers and authorised dealers generally earn higher profit margins from the sale of parts and servicing than from new car sales," says Rod Sims, chair of the ACCC. "This provides an incentive to limit competition for the repair and servicing of new cars."
Car makers were found to maintain these inflated prices by withholding valuable information from independent mechanics, conduct that ultimately limits competition in the industry.
Car makers are not providing independent mechanics with the technical information needed to service new cars, or delaying the transmission of that information, despite the industry in 2014 voluntarily committing to share the same information as they do with their authorised dealers.
"This lack of competition hurts new car buyers who have fewer options to get the best deal for repairs and servicing, and restricts independent repairers from competing on a level playing field," says Sims. "For new cars to be properly repaired and serviced, independent repairers need access to electronic information and data produced by car manufacturers."
The competition watchdog is recommending it be mandatory for car makers to share this information with independent repairers, in the hope it will increase competition and lead to lower repair and servicing costs for consumers.
The ACCC draft report also found the car industry relies on a dominant "culture of repair" for dealing with car defects and failures, and that it has established rigid complaints handling systems and policies in an effort to prevent new car owners from receiving a refund or a replacement.
Other issues of concern that were identified include the widespread signing of non-disclosure agreements to secure a repair, and the publishing of inaccurate fuel performance figures.
More than 10,000 complaints about car manufacturers were made to the ACCC in the last two years, while motor vehicles account for approximately 20% of all complaints dealing with consumer guarantees.
An automotive engineering and repair business established in Rockhampton some 55 years back. This firm (HAE) pioneered computerised diagnostics when the first computerised car came to Rocky.
This business is fully resourced to take care of your new car servicing. They have access to electronic data and diagnostic resources necessary in servicing the modern automobile. Steve tells us he will carry out new car servicing at a fraction of what the Rockhampton dealers are charging. He also offers a lifetime workmanship guarantee*.
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Summary of page:
Engine oil, oil filter, air filter clean and test, fuel filter change, tyre rotation, wheel balance, wheel alignment, radiator coolant, fan belt, serpentine belt, water pump, radiator hoses, heater hoses, mechanics, automotive technicians, automotive engineers, oil change, brake inspection, battery condition report, safety check.
Home > Need to Know about New Car Servicing
NEW CAR SERVICING ITEMS MENU: For everything from an oil and filter change to Logbook Service for new and near new cars under warranty. HAE is the auto technology master. We do it once and do it right. Warranty Safe.
Logbook Quality Service Better & Cheaper HAE Rockhampton
What YOU NEED TO KNOW about new car servicing: HAE is an Automotive R&D training lab upskilling Technicians and Mechanics to keep your car performing like new.
Your car service will cost you less at Highway Auto because we are not a dealership or a franchise, lowering operating costs. HAE is a Rockhampton family business established in 1966. We are an automotive technology and training operation that is high on automotive engineering skills and low on customer charges compared to franchise operators. So shop local and be rewarded.
Quality assured warranty safe logbook service best & cheapest quality assured Factory-trained technicians & mechanics for A/C, Electrics, and Mechanical service with a smile
Choose Highway Auto your independent new car servicing specialist, get value with the cheapest options. Escape dealer price gouging and new car Warranty Traps.
You pay less and get top-quality servicing per the manufacturer's schedule and update recommendations.
Some Different Names For Car Services
Alternative names for vehicle services are MINOR SERVICE which is the basic building block for all vehicles services. Then there is MAJOR SERVICE as the name suggests a comprehensive and very necessary service. New car owners would be familiar with the dealer reference to LOGBOOK SERVICE where the manufacturer has set out a best case servicing program for a new vehicle.
How Often Should I Service My Car?
How often should you service your Car? Your Car is designed to be driven. If it sits in your garage with little or no use or makes only short trips, it must be serviced a minimum of every six months regardless of the Kilometers on the speedo.
This is because the engine oil deteriorates, the fluids change to a deteriorated state, and the battery and tyres deteriorate, too. HAE Rockhampton has a particular service plan for low-use vehicles to ensure they are maintained in good health. However, if you are doing thousands of kilometres, these vulnerable components require more frequent servicing for different reasons. HAE Free Customer Support Services
Manufacturers Recommended Service Periods For These Vehicles
| VEHICLE | TIME | DISTANCE |
|---|---|---|
| Honda Civic | 6 Months or | 10,000km |
| Mazda CX5 | 12 months or | 10,000km |
| BMW X5 | 12 months or | 15,000km |
| Toyota Hilux | 6 months or | 10,000km |
| Ford Ranger | 12 months or | 15,000km |
| Subaru Forester | 12 months or | 12,500km |
| Suzuki Swift | 12 months or | 10,000km |
| Nissan Pathfinder | 12 months or | 10,000km |
| Hyundai i30 | 12 months or | 15,000km |
| Holden Colorado | 12 months or | 15,000km |
Car Repairs Interest Free Flexible Easy Payment Options
Service your vehicle now and PAY LATER with our interest free easy payment options. Choose from HUMM PAY or ZIP PAY or AFTERPAY options to pay for your repairs and servicing over a period best suited to you.
Car Repairs Quick Links:
The benefits of using Highway Auto Mechanics for your next service:
Customers who have their cars serviced at Highway Auto are entitled to periodic under-bonnet checks, inspections and tyre inflation.
- Your new car warranty is always protected
- Lifetime Quality guarantee*
- 24,000kms or 24 month guarantee on new parts
- We service all makes and models
- Your log book is stamped, signed and recorded
- Agreed Price - You know costs upfront, with no hidden extras
- We use only quality and reputable products
- Qualified and experienced technicians
- Quick and efficient customer personal service
- Messaging service for reliable instant contact
New Car Dealer Monopoly Ends You are Free to Choose - Report From CHOICE.
Parliament tears down new car repair monopoly: CHOICE
New laws mean manufacturers of new cars will have to share repair information with third party repairers. Australians will be able to turn to their own trusted mechanic and will no longer be forced to get repairs from new car dealers under laws passed by the federal parliament today.
The new laws will force new car manufacturers to offer the same diagnostic, repair and servicing information they give to their own dealers, to third party repairers which they can buy at fair market price.
"Today the Australian Parliament has torn down the new car repair monopoly," says Alison Elliott, Consumer Rights Expert at CHOICE.
"When your car needs fixing, it should be your choice as to who repairs it. The complicated nature of modern car design means many manufacturers have locked out third party repairers from helping people because they have not had access to the information necessary to fix new cars. Whether you trust your local mechanic or the original car dealer more, the choice should be yours," says Elliott.
New Car Dealer Monopoly Ends You are Free to Choose Report From CHOICE. Go to this link for more information on your freedom.
Capped price servicing: what you need to know
While you may get piece of mind knowing you won’t get slugged with a huge service bill after buying a new car, make sure you are aware of the devil in the details.
Suppose you are locked into a long term Capped Price Service contract? Imagine: The cost of labour hikes through the roof, parts and oils and other inputs climb out of sight? Does the dealer stick to the agreed price or does he renegotiate your contract or do the easy way and skimp on oils and materials? Read more on the link below.
Capped Price Servicing and what you need to know.
Agreed Price Service & Repairs Has No Hidden Extras
Highway Auto's agreed Price system requires no contract, unlike the many Capped and fixed Price advertisements. Thankfully the HAE Approved Price system guarantees your car gets everything it should have. So yes, you get what you pay for and that's all you pay with the HAE Agreed Price Service.
After all, servicing your Car is about preventative maintenance or paying for something bad not to happen.
All Services Quick Menus
MENU - Auto Air-conditioning MENU - Brakes. MENU - Vehicle Electrical Systems. MENU - Mechanics & Servicing. MENU - New Car Servicing MENU - Radiator & Cooling. MENU - Car & 4WD Servicing
PREVENT CAR THEFT with HAE lockout system. Prevents the Engine from running Priced under $700 most vehicle makes.
Service your vehicle now and PAY LATER with our interest free easy payment options. Choose from HUMM PAY or ZIP PAY or AFTERPAY options to pay for your repairs and servicing over a period best suited to you.
Contact Us, Find Us, See Our Map, Get a Quote, Make a Booking
Are You Being Taken For a Ride - Find out:
- Do I need to service my new car at the dealer?
- Are consumers being encouraged to service their car at the dealer?
- Do I need to use genuine parts?
- Logbooks and dealer stamps
- Capped price servicing
- What about my extended warranty?
- How to keep your car's warranty intact
Do I need to service my car at the dealer?
The Australian Competition and Consumer Commission (ACCC) says "a manufacturer's warranty is a promise to the consumer that the vehicle will be free from defects for a certain period of time". While a manufacturer can have certain requirements in its warranty terms – such as ensuring any servicing is carried out by qualified staff, according to the manufacturer's specification, and that appropriate quality parts are used where required – it can't require you to service your vehicle through an authorised dealer to keep your warranty intact. You are free to make the choice: Pay the dealer premium, or find a garage outside of the dealer network.
"Provided you service the vehicle in accordance with any such requirements, the warranty will remain valid. If the manufacturer's warranty states that the vehicle can only be serviced by an authorised dealer, this may raise concerns under the Competition and Consumer Act," the ACCC has said in written guidance to the automotive industry.
But that message doesn't always seem to be getting across: we've come across examples of dealers flouting the ACCC guidelines and saying you should service your car at an authorised dealer. We also found language in logbooks that strongly implies you'll be voiding the warranty if you don't take it back to the dealer for servicing.
Dealers rely on servicing your car to make greater profit.
Given that car dealers don't make profits on car sales alone according to industry research, it's not surprising that they attempt to lure buyers back after the sale to pay for servicing and expensive "original" parts.
In fact, dealers depend on servicing, parts, car finance and insurance to make their profit margins. A 2018 motor industry report from Deloitte found on average, nearly 30% of car dealer's profits came from servicing, while dealers lost money on new car sales.
One lobby group for some major dealerships explained in a submission to government how their business model works. "By generating sales volumes, dealers create opportunities to build customer relationships which result in a future stream of revenue. Such revenue includes adding and installing aftermarket accessories on the new vehicle sale, dealership finance and insurance, and servicing the customer's vehicle throughout the life of the car."
What the dealers say.
Choice called 24 Toyota, Mazda and Holden dealerships across Australia in April 2018 to get an idea of what consumers are being told about their rights in relation to servicing and warranties. Three dealers gave them completely incorrect advice, saying we had to return the vehicle to a dealer to maintain the warranty. A number of others gave us questionable advice, or only told us we could go to an independent mechanic after being pushed on it.
While most dealers generally said the right thing about warranties and servicing once pushed, many didn't offer this information upfront and resorted to sales tactics to promote dealer servicing, such as capped price service deals and extended warranties, both of which usually lock you into servicing your vehicle at the dealer. Many used terms such as "advisable", "recommended" and "preferred" in relation to dealer servicing, which could further add to the impression that using an independent mechanic may result in problems.
Are genuine parts needed?
Many dealers also angled for dealer servicing by saying genuine parts were either required or highly recommended in order to keep the warranty intact. The problem here is that genuine car parts can be much more expensive than their aftermarket counterparts. In fact, when we looked at this issue back in 2016, we found details of the mark-up being as much as 60% even though the parts are often identical and some from the same source.
What is the law?
But you don't have to pay the price premium on parts to be covered. The ACCC's guidance says that provided you use quality parts, your car manufacturer's warranty won't be voided. If a non-genuine part is used it won't be covered under the manufacturer's warranty, but it would be covered under the warranty of the part's supplier and/or Australian Consumer Law. To be fair, despite the initial response of dealers, when pushed many did clarify that it'd only be the actual part that wouldn't be covered rather than the whole warranty being voided.
Can independent mechanics do software updates?
Another common dealer lock-in tactic was to say that independent service agents won't be able to offer all the software updates that are required. One dealer told us: "Legally you don't have to [bring it back to the dealer] but independents can't update the car which needs to be done pretty much every service". Executive director of the Australian Automobile Aftermarket Association (AAAA) Stuart Charity says independent mechanics generally have enough information available to be able to do a scheduled service. But cars are becoming increasingly computerised and car manufacturers aren't sharing enough information when it comes to repairs and software updates, he says. This is despite car industry bodies signing a voluntary agreement on access to service and repair information in December 2014, which said they would make available to independent repair shops all the necessary information.
This software is available to experienced savvy independent car servicing specialists.
Logbooks and dealer stamps
Choice took a look at a number of logbooks in April 2018 to see what messages were being conveyed to consumers. The upshot? We won't blame you if you've been led to believe you have to take your vehicle back to the dealer for servicing.
A number of brands include a space on the service pages indicating that it should either be stamped and/or signed by an authorised dealer. For example, one Ford logbook we looked at has a space for an "Authorised Ford Dealer Log Book Service Verification Stamp" and also has a checklist asking the mechanic to tick that they are an Authorised Ford Dealer Service Department. Mazda's logbook asks for a dealer validation stamp and Hyundai's asks for a dealer's signature. None of these things are required to keep your warranty intact, but the logbooks certainly make it look that way. What's the law?
The ACCC has clearly said: "Even if the service page boxes in the logbook are labelled in this way, an independent repairer may sign or stamp the relevant page of the customer's service logbook (once they have completed the service) without it affecting the manufacturer's warranty provided any other requirements are met (i.e. the service is carried about by qualified staff etc.)."
Capped price servicing.
A number of car manufacturers offer capped price service deals when purchasing a new car. Locking in a set servicing price may sound like an appealing offer, but check what you're getting before you sign on the dotted line.
In early 2016, the ACCC took action against Kia over its capped price servicing program. The ACCC said that the car manufacturer had made representations on its website that "the capped price applicable for each service is the maximum you will pay for your scheduled service". All the while, Kia's terms and conditions had allowed scheduled service prices to be amended at any time, and service prices had in fact been changed by Kia four times since 2014.
Choice took a look at a few servicing deals to find out what was going on and found it hard to see the benefit in some cases. The offer of Hyundai's Lifetime Service Plan, for example, is fairly ambiguous. One of Hyundai's explanations says it "allows the reassurance of knowing in advance the maximum cost for each scheduled service". Hyundai specifies the maximum price applicable when you request a service quote online. But these quotes may change without notice and are only valid for an effective period. When we got a quote, it was only valid for 30 days. So we were left wondering what the "Lifetime" in Hyundai's Lifetime Service Plan actually means. Hyundai's terms explain that the entitlement to receive the scheduled service for a price not exceeding the published price "applies for the lifetime of the vehicle".
So what is Hyundai actually offering? When Choice asked Hyundai for more details one of their spokespeople told them that prior to these types of programs being introduced, service costs weren't standardised and they varied markedly across their dealerships in Australia. "Our Lifetime Service Plan fixes that issue, and gives customers a very clear picture of what the prices will be going forward for servicing. Yes, prices may increase slightly due to inflation and that needs to be explained in the T&Cs," the spokesperson says.
Extended warranties.
Choice spoke to a number of dealers who said cars needed to be serviced at the dealer the whole time in order to keep the extended warranty. The ACCC guidance says that extended warranties usually kick in at the completion of the manufacturer's warranty. "A common requirement of these warranties is that the vehicle must be serviced by the dealer offering the warranty. Imposing this requirement on the owner is permissible," the ACCC says in its guidance.
How to keep your car manufacturer's warranty intact.
Find out:
- Shop around for the best servicing deal and stick with a trusted mechanic. You don't have to go to an authorised dealer to keep the manufacturer's warranty intact.
- Service your car in line with the schedule and specifications in the owner's manual or warranty logbook.
- Ask that quality parts be used for servicing (the parts don't have to be genuine to keep the warranty intact). Ask for an itemised account for the labour conducted and parts installed. If there's a problem with the parts used, the repairer or part manufacturer will be responsible.
- Ask the mechanic to fill in your logbook – they don't need an authorised dealer stamp for the warranty to be valid.
- If you're choosing not to service your car through the dealership, ensure your service centre is reputable. NSW and WA have repairers' licensing schemes, and elsewhere, you can check to see if they're a member of the Victorian Automobile Chamber of Commerce (VACC, in Victoria) or the Motor Traders Association in the other states.
Car makers gouge drivers on repair costs: ACCC.
Car makers are protecting inflated servicing costs by engaging in conduct that limits industry competition, a draft report from the ACCC has revealed.
The Australian Competition and Consumer Commission's (ACCC) yearlong investigation into the new car market has found manufacturers charge an average mark-up of 64% on new car repair and servicing, and that car makers withhold information from independent mechanics in a move that ensures the margins remain thick.
Car dealers made an estimated $64 billion in the most recent financial year, with the repair and servicing sectors found to be worth $24.8 billion. "Manufacturers and authorised dealers generally earn higher profit margins from the sale of parts and servicing than from new car sales," says Rod Sims, chair of the ACCC. "This provides an incentive to limit competition for the repair and servicing of new cars."
Estimated profit margins for car dealers in Australia
- Service -- 64%
- Parts -- 21%
- Used vehicles -- 10%
- New vehicles -- 7%
Car makers are not providing independent mechanics with the technical information needed to service new cars, or delaying the transmission of that information, despite the industry in 2014 voluntarily committing to share the same information as they do with their authorised dealers.
"This lack of competition hurts new car buyers who have fewer options to get the best deal for repairs and servicing, and restricts independent repairers from competing on a level playing field," says Sims. "For new cars to be properly repaired and serviced, independent repairers need access to electronic information and data produced by car manufacturers."
The competition watchdog is recommending it be mandatory for car makers to share this information with independent repairers, in the hope it will increase competition and lead to lower repair and servicing costs for consumers.
The ACCC draft report also found the car industry relies on a dominant "culture of repair" for dealing with car defects and failures, and that it has established rigid complaints handling systems and policies in an effort to prevent new car owners from receiving a refund or a replacement.
Other issues of concern that were identified include the widespread signing of non-disclosure agreements to secure a repair, and the publishing of inaccurate fuel performance figures.
More than 10,000 complaints about car manufacturers were made to the ACCC in the last two years, while motor vehicles account for approximately 20% of all complaints dealing with consumer guarantees.
You have a choice in escaping dealer price gouging:
Steve is the manager of Highway Auto Rockhampton
An automotive engineering and repair business established in Rockhampton some 55 years back. This firm (HAE) pioneered computerised diagnostics when the first computerised car came to Rocky.
This business is fully resourced to take care of your new car servicing. They have access to electronic data and diagnostic resources necessary in servicing the modern automobile. Steve tells us he will carry out new car servicing at a fraction of what the Rockhampton dealers are charging. He also offers a lifetime workmanship guarantee*.
Links to Pay Less Quality Automotive Servicing Sites:
Pay Less for New Car Servicing plus automotive specialties with AI diagnostics and electronics – New Car, SUV, 4WD, Caravans North Rockhampton Visit – North Rockhampton's longest serving multi specialist vehicle repair and new car servicing workshop, quality first and you pay less.
