The title comes after it this week launched the industry's first five-year capped-price service program. It means motorists can save up to $400 a year compared with new cars without a capped service scheme.
New Kia buyers will know exactly how much their vehicle will cost to service for five years. The program - the most expansive available - comes on top of Kia's five year, unlimited kilometre warranty and access to a new five-year roadside assist scheme.
The capped price service program, called Kia Connect, applies to all new Kias and to most models still under warranty. The cost to service a Kia Rio 1.4 has been set at $1566 for five years or 75,000km - about $350 cheaper than servicing a Mazda2 for three years.
A diesel Sportage over five years will cost $2160 in service costs. Kia's move follows Hyundai last week launching its “iCare” capped service program which is over three years. Hyundai iCare includes three-year capped price servicing; updated maps from Navteq for three years; roadside assist for 12 months for cars serviced under the program (for vehicles aged up to seven years); and Hyundai's quick, under one-hour service plan.
“Hyundai capped price service will be available to all private and small business buyers and will last for 50,000kms or 40 months from the date of commencement,'' says Hyundai Australia's director of aftersales, Nick Aravanis.
“Hyundai will continue to provide long service intervals of 12 months or 15,000kms to maximise customer convenience.'' The programs by the heavy-hitting Koreans add to similar schemes in place by Holden, Ford, Mitsubishi, Toyota, Nissan and Subaru.
Industry experts said the benefit is not only to the motorists. They said car makers expect more sales while dealers will get more work through their service centre to maintain staff employment. VACC spokesman Murray Collins said the benefit to the motorist was peace of mind. “They know the cost of a service and where they are going to get their vehicle serviced,” he said. “Therefore, it is easier to budget for in terms of cost and effort.
“For the dealer, they can budget for their volume because they know from the amount of vehicles they sell, how many vehicles they will be servicing over the year.” But he said the disadvantage for motorists is that fixed priced servicing restricts their choice of repairer to the dealer network.
“This is the disadvantage for the independent repairer too, as vehicles are locked into fixed time periods thus reducing their volume,'' he said. Kia says about 50 per cent of new owners return their car to the dealership for the first service.
But that retention rate falls to about 35 per cent by the third year. The Kia Connect program aims to significantly boost that retention rate. Kia's program is the only one in Australia which offers the capped-price service across a five-year, unlimited kilometre warranty with annual service intervals.
Manufacturers steer away from extending any capped program beyond three years because the major service is generally at four years. Kia's annual service schedule is also a major factor ensuring low cost of ownership when compared to many other makes with six-monthly service schedules.
Kia Australia's chief operating officer, Tony Barlow, says the program “adds another logical reason why Kia should be a front-of-mind consideration for any new car purchase.” “A capped-price service program, particularly where a service is an annual event, is an excellent tool for owners to have clarity and consistency of pricing when budgeting for keeping their new purchase in peak condition,'' he says.
“This is about building a lifetime relationship with our customers, anticipating and providing for their needs while supporting their decision to join the Kia family.” In addition to the pricing clarity of a five-year capped-price program, Kia Connect will also offer a 24/7 roadside assist program at no cost to the customer.
The first year's roadside assist will be automatic at the purchase of the vehicle and will be renewed at no cost with each annual service by a registered Kia service provider. The Kia Connect program will see annual service charges for all models clearly defined by engine type and year of service.
COSTS TO SERVICE OVER 3 YEARS
LIGHT CARS -
| Hyundai Accent | (12mths/15,000km*) | $567 |
| Holden Barina | (12months/15,000km*) | $740 |
| Toyota Yaris | (6months/10,000km*) | $780 |
| Kia Rio | (12mths/15,000km*) | $841 |
| Suzuki Swift | (12months/15,000km) | $890 |
| Hyundai i20 | (12months/15,000km) | $1245 |
| Mazda 2 | (6months/10,000km) | $1903.50 |
* Fixed or capped price service program
SMALL CARS -
| Hyundai i30 | (12mths/15,000km*) | $657 |
| Ford Focus | (12months/15,000km*) | $720 |
| Holden Cruze petrol | (12months/15,000km*) | $740 |
| Toyota Corolla | (6months/10,000km*) | $780 |
| Kia Cerato | (12mths/15,000km*) | $1012 |
| Hyundai i30 | (12months/15,000km) | $1202 |
| Mazda 3 | (6months/10,000km) | $1989.09 |
* Fixed or capped price service program
COMPACT SUVs -
| Toyota RAV-4 | (6months/10,000km*) | $1020 |
| Kia Sportage diesel | (12mths/15,000km*) | $1175 |
| Hyundai ix35 diesel | (12mths/15,000km*) | $1197 |
| VW Tiguan 132 | (12months/15,000km) | $1250 |
| Nissan X-Trail petrol | (6months/10,000km*) | $1725 |
| Mazda CX-5 | (6months/10,000km) | $1806 |
| Subaru XV | (6months/12,500km) | $1914 |
* Fixed or capped price service program
KIA MODEL SERVICE COSTS
| Kia Model | Engine Size | Engine Type | 1 Yr/15k | 2 Yrs/30k | 3 Yrs/45k | 4 Yrs/60k |
| Rio |
1.4 1.6 |
Petrol Petrol |
$239 $263 |
$310 $351 |
$292 $321 |
$458 $453 |
| Cerato | 2.0 | Petrol | $262 | $429 | $321 | $535 |
| Soul |
2.0 1.6 |
Petrol Diesel CRDI |
$262 $323 |
$329 $397 |
$277 $398 |
$746 $627 |
| Optima | 2.4 | $299 | $358 | $361 | $536 | |
| Rondo | 2.0 | Petrol | $262 | $429 | $321 | $535 |
| Carnival |
3.5 2.2 |
Petrol Diesel CRDI |
$287 $338 |
$359 $468 |
$350 $405 |
$562 $510 |
| Sportage |
2.0 2.4 2.0 |
Petrol Petrol Diesel CRDI |
$254 $254 $359 |
$435 $435 $423 |
$302 $302 $403 |
$533 $533 $596 |
| Sorento |
2.4 3.5 2.2 |
Petrol Petrol Petrol |
$281 $316 $314 |
$392 $376 $374 |
$332 $370 $368 |
$601 $583 $559 |
Note: Kia Connect is a five-year program.
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