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Market Insight: Capped-price servicing makes its mark

Sticking point: Less than 10 per cent of new-car buyers whose dealer offers a capped-priced servicing scheme felt compelled to visit an independent service centre, preferring to stick with the brand’s authorised outlet. But the story is different for those who don’t offer such a service.

Capped-pricing servicing plays key role in customers’ loyalty to authorised dealers

Market Insight logo2 Dec 2016

By TERRY MARTIN

- Capped-price servicing schemes operating through car companies’ authorised retail network are having a positive effect on customer satisfaction and playing a significant role in motivating owners to return to the dealership rather than use an independent service centre, according to JD Power’s latest Customer Service Index (CSI) Study.

- The independent study released this week found that a majority of respondents (52 per cent) said their service was covered by a capped-price scheme – up from 47 per cent last year and 38 per cent in 2014 – while 29 per cent said they were not covered and the balance did not know.

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