NEIL DOWLING
AUSTRALIA’S cheapest cars to own and service are Korean after Hyundai and Kia unveiled their cost-cutting capped-price service programs.
Hyundai’s three-year iCare program is within its five-year warranty on the car. For buyers of the Hyundai i30 – one of Australia’s most popular small cars – the maximum cost for its annual service is $219.
That is about one-third of the cost of servicing a Mazda3.
Hyundai Australia’s director of Aftersales, Nick Aravanis, says it was “a great service to our customers long after the sale has been made and the car has been taken home”.
“The Hyundai iCare program with the inclusion of the capped price service is an excellent way to broaden this commitment.”
Hyundai’s iCare program, announced this week concurrent with the company’s milestone one-millionth car production, beat by a few days a similar program to be unrolled from Kia.
Kia Connect will be launched on Wednesday, August 1, and covers all Kia vehicles for five years – two years more than Hyundai – with set service costs and includes free roadside assist for buyers who stick with the program.
Most car companies that offer a capped service program run for only three years.
Kia’s roadside assist is a 12-month plan but regenerates for another year after customers have their vehicle serviced.
“It gives value to customers and it gives customers back to Kia service centres,” says Kia Australia spokesman Kevin Hepworth.
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.
“The service has to be at an authorised dealership,” Hepworth says.
Kia has a five-year and unlimited kilometre warranty. New vehicles have a complimentary service at 3000km and then intervals at every 12 months or 15,000km.
The program, which starts on Wednesday, August 1 for new cars and September 1 for existing warranties, also covers Kia cars that are currently under a new-car warranty and will apply for the duration of the warranty.
“Kia Connect stays with the car so it is transferable to the car’s next owner during the warranty period,” Hepworth says.
“Different models will have different capped service prices, as will petrol cars compared with diesel cars. It is very specific to the model.”
Kia Connect also applies to fleet customers where the warranty is still five years but limited to 130,000km. The exceptions are rentals, taxis and hire cars.
Kia says one advantage of its new program is the need to service cars only once a year.
“Some of our rivals need their cars serviced twice a year,” he says.
“We only need servicing once a year. That obviously saves money and saves the owner time.”
Competition models that have a capped-price service program and need servicing twice a year include Toyota and Mazda.
“It’s all down to adding value to our product and keeping customers for life,” he says.

BREAKOUT:
NEIL DOWLING
WE’VE all been there – dreading the time you have to pick up the car
from the service centre and getting the shock of the bill.
You’d think budget cars would get budget service costs, but it’s not always the case.
So look beyond the purchase price before you buy a small car. Some
carmakers have fixed, or capped, service charges and more
manufacturers are offering set prices so you won’t have the pre-bill
jitters.
But it’s not the whole story. European cars are sometimes cheaper to service than Japanese cars and fuel-efficient diesel cars are more expensive to service – some so much that it may be financially prudent to buy a petrol model.
Some car makers – Mazda, Toyota and Subaru – make you visit the service centre twice a year while most only want to see you once. That indicates you’ll pay twice as much as the owner of a car needing an annual service – but that’s not always true either.
Use this guide to see how much a small car will cost you in servicing and fuel bills – the money that’s coming out of your pocket. The results may surprise you.
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
Note: Kia Connect is a five-year program.