Competitive advantage: “No-Worry Maintenance” programs | Beyond the KM

This entry was posted on Sunday, April 27th, 2008 at 12:00 am

Competitive advantage: “No-Worry Maintenance” programs

For most of the decade now BMW has enjoyed a distinct competitive advantage - at least in the American market. They have offered a four-year, 50,000 mile maintenance-cost-free program called “BMW Ultimate Service”. The service includes free replacement of:

  • Brake Pads
  • Brake Rotors
  • Wiper Blades
  • Scheduled Maintenance (as outlined in the owner’s manual)
  • Oil Changes/topping up of fluids
  • Roadside Maintenance

It’s worth noting that BMW parts are generally well-made, and will not typically require new pads and rotors in this 50,000 miles. Still, it’s nice to know you’re covered. It’s also worth noting what the program does NOT include: tyres and alignment for starters. 

BMW has kindly paid Intellichoice to calculate the savings on maintenance you’d be paying if you had bought a competitor’s car:

 IntelliChoice Data

BMW has compiled data pertaining to the average cost* of maintaining other vehicles during the first four years of ownership. See how BMW’s no-cost Ultimate Service plan compares:

Brand
Maintenance Costs
  • Acura - $970.75
  • Audi - $967.17
  • BMW - $0
  • Cadillac - $744.26
  • Infiniti - $649.40
  • Jaguar - $1112.53
  • Land Rover - $233.52
  • Lexus - $974.22
  • Lincoln - $922.14
  • Mercedes-Benz - $1086.60
  • Porsche - $1032.14
  • Saab - $385.29

Source: 2007 IntelliChoice, Inc., www.intellichoice.com. Maintenance figures shown based on 4 Years/50,000 Miles, excluding tire replacement costs.

That’s a pretty significant savings. Indeed, checking with BMW’s closest German competitor, we notice that Mercedes-Benz fails to offer the same comprehensive maintenance program.

They note on their site:
“Like any machine that achieves extraordinary extremes of performance, your Mercedes-Benz requires regular maintenance. And taking care of your Mercedes-Benz is probably a lot easier and more affordable than you think.
When your Model year 1998 through 2004 vehicles’ Flexible Service System indicates it’s time for service, take your vehicle to your Mercedes-Benz Dealer, where our expert technicians perform routine services and maintenance*.
Generally, you can expect to drive your Mercedes approximately 10,000 miles between services - and as many as 20,000 miles - depending on which model you drive, how you drive it and the severity of your driving conditions. Most people average around 12,000 miles between service visits.**”

Not much of an extra service, but they don’t fall completely flat. They do note for 2005 models and later:
“For Model Year 2005 vehicles
The Mercedes-Benz Maintenance Plan1 makes caring for your 2005 Mercedes easier than ever. The service intervals are fixed and predictable - every 13,000 miles or one year for most vehicles2. Your car will even remind you - about one month before it’s due.
Your dealer provides a Service Welcome that includes a first visit (between 1,000 and 3,000 miles) and your first tire rotation (before 6,500 miles) at no charge*.
* See your local MB Dealer for details.

1 The Flexible Service System and included Mercedes-Benz Maintenance Commitment have been discontinued as of model year 2005.

2 Whichever comes first. Requires use of 229.5-spec oil and high-performance fleece oil filter. Every 10,000 miles on V-12 and AMG models. Driver is responsible for monitoring fluid levels and tire pressures between service visits. On E-Class models, see Maintenance Booklet for additional maintenance service types.”

Still this is a little late to the game as BMW had been offering their program, in current form, for nearly the whole decade now.

Jaguar offers a program they call the “extra mile” program.
“Complimentary maintenance further enhances your Jaguar driving experience. Simply bring your Jaguar to an authorized Jaguar Dealer and the first required maintenance will be performed at no charge within your first year of ownership or 12,500 miles. Please refer to your vehicle´s scheduled maintenance program for more information.

Jaguar also offers a pre-paid scheduled maintenance program: Jaguar Extra Mile Scheduled Maintenance Plan. Contact your preferred Jaguar dealer if you´re interested.”

Still, not quite up to part with BMW.

Audi offers:
“When you purchase a new Audi 2007 or newer model year vehicle, you have the opportunity to purchase Audi Care, a comprehensive new vehicle scheduled maintenance service plan. The cost of the Audi Care New Vehicle Plan may be rolled into your vehicle payment, if it is purchased at the time of vehicle sale.
The Audi Care New Vehicle Plan covers the manufacturer-required regularly scheduled maintenance services at 15,000 miles, 25,000 miles, 35,000 miles, and 45,000 miles, or 5 years from the original vehicle in-service date, whichever comes first.
The cost of Audi Care is $650 MSRP
Additionally, an Audi Care Certified pre-owned Vehicle Plan is available. A customer who purchases an Audi 2005 model year or newer Certified pre-owned vehicle from an authorized Audi dealership in the U.S. will have the opportunity to purchase the Audi Care Certified pre-owned Vehicle Plan. The plan covers manufacturer-required regularly scheduled maintenance services at 55,000 miles and 65,000 miles, or 6 years from the original vehicle in-service date, whichever comes first.
* See your Audi authorized dealer for pricing”

Still, at $650, Audi isn’t doing you any favours. Also, their care plan may not take you are far as the BMW one. BMW’s is 4 years or 50,000 miles, whichever comes FIRST.

But the real news this week comes not from Audi, but rather parent brand, VW.

VW announced this last week that they would be launching a new “Care-free Maintenance” program.
from VW of America:
“With this program there are no charges for the scheduled maintenance described in each vehicle’s maintenance booklet for the length of the New Vehicle Limited Warranty—three years or 36,000 miles, whichever occurs first. The Carefree Maintenance Program will launch with the introduction of the Tiguan, Volkswagen’s all-new crossover utility vehicle.
“Volkswagen’s Carefree Maintenance Program is a great way to improve our owner loyalty for our brand, as well as increase consumer consideration” said Mark Barnes, Chief Operating Officer, Volkswagen of America, Inc. “This program also differentiates us from our competition by allowing us to be the only automaker among our key competitors to offer a no-charge maintenance program” added Barnes.
The maintenance intervals covered under this program and detailed in each vehicle’s maintenance booklet are 10K, 20K, and 30K miles for all 2009 model year Volkswagens. Since all current Volkswagens use synthetic oil, combined with state-of-the-art European engineering, a 5K oil change is no longer necessary. This means that Volkswagen customers can drive further between oil changes.

The Carefree Maintenance Program also includes a courtesy vehicle check. This allows owners to return to the dealership from which they purchased their 2009 model year Volkswagen within 90 days or 6,000 miles, whichever occurs first, for a full review of the vehicles benefits and features, and to have their vehicle checked at no charge.”

So there you have it, the first major contender for better service - in the non-luxury segment. The sales strategy will surely help VW dealers move more volume much in the same way BMW has in recent years, reassuring customers all along the way that the VW brand stands for value AND reliability!

We will be especially interested to see if VW’s American and Japanese competitors will offer anything this comprehensive. Are the days of the dealership service department cashier gone? Probably not for awhile. Those shopping for new vehicles should take note of whether models offer comprehensive warranty and maintenance support and calculating that into the Total Cost of Ownership calculation over the life of ownership.

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