Lexus to Cut free 1000 Mile Inspection
07-07-05, 12:39 PM
#1
Lexus Test Driver
Thread Starter
Lexus to Cut free 1000 Mile Inspection
Read this in the Wall Street Journal Today, Interesting story about how automakers are eliminating free maintenence packages with their cars. Lexus' 1000 Mile service used to include free inspection, free engine oil replacement, and free tire rotation/alignment if necessary. Now the only free service is at 5k or 6 months.
Car Makers Cut
Free Maintenance
Move by Wide Range of Brands Could Add
Thousands of Dollars to Cost of Ownership
By JENNIFER SARANOW
Staff Reporter of THE WALL STREET JOURNAL
July 7, 2005; Page D1
In an effort to trim costs, car makers are eliminating their free-maintenance programs -- a move that could cost drivers thousands of dollars in additional upkeep over the life of a vehicle.
Free-maintenance plans started as a perk among a few luxury cars, but quickly spread to become an expected part of a top-dollar vehicle. Now, however, a growing number of manufacturers -- including some of the same brands that kicked off the free-maintenance movement more than a decade ago -- are requiring new customers to pay for maintenance services like oil changes, tire rotations and other routine tasks that used to be free.
Volvo plans to significantly downgrade its program beginning with the 2006 model year, offering just one free-maintenance visit. Previously the company, owned by Ford Motor Co., covered the first four scheduled checkups. In April, Mitsubishi Motors Corp. stopped offering free maintenance to buyers of 2005 model-year cars in the U.S., and says it doesn't plan to resume offering it soon. DaimlerChrysler AG's Mercedes-Benz brand, starting with its 2005 model line in the U.S., replaced its four-year free-maintenance plan with packages customers must purchase, at a cost that can range from $576 to nearly $4,000.
For 2005 models, Toyota Motor Corp.'s Lexus brand eliminated a complimentary inspection at about 1,000 miles, though it still offers a free scheduled maintenance at 5,000 miles or six months. Volkswagen AG says its Audi unit is still deciding whether to continue to offer free maintenance for 2006 Audi models, which will be launched later this year, according to a spokesman. The company dropped free maintenance on Volkswagen models a few years ago.
Some of the manufacturers eliminating free maintenance have been cited as having repair and reliability problems, which can translate into higher warranty costs. Volkswagen, Audi, Mercedes-Benz and Volvo were among the brands that performed below average in J.D. Power & Associates' most recent Vehicle Dependability Study, released last week. In contrast, BMW AG and Lexus, which are retaining some or all of their free-maintenance programs, ranked above average in the study, which annually surveys consumers about problems with three-year-old vehicles.
A Volvo spokesman says the ranking didn't play a role in its decision to change its maintenance program. Mercedes says other rankings of quality show that the auto maker is making gains.
The cuts are happening as auto makers look for ways to trim their costs and beef up their bottom lines as the industry has struggled to reignite sales over the past year or so. In recent weeks, Ford cut its full-year earnings outlook for 2005 for the second time this year and said it would cut costs more than earlier announced.
Earlier this year, Chrysler also significantly cut its warranty on Jeep, Chrysler and Dodge vehicles, and analysts expect other auto makers to follow suit. But while new-car buyers still expect a vehicle to come with warranty coverage, auto makers say that free maintenance hasn't proved as important to customers. Mitsubishi, which started offering free maintenance on its 2004 models, found its program to be "less effective than anticipated" in getting people onto the showroom floor, a spokeswoman said. And Volkswagen, which dropped its free-maintenance program starting with its 2002 model year, at the same time extended its bumper-to-bumper warranty.
In recent months, auto makers have turned to new pricing incentives to spark sales, and are seeing some success. Earlier this week, General Motors Corp. extended until Aug. 1 its "employee discount for everyone" program, which helped the car maker in June report its best monthly sales figures in nearly 20 years.
Free maintenance first showed up on luxury vehicles in the 1980s as a way to encourage lease customers to take care of cars they didn't own. In the past decade, auto makers expanded it to all customers as a way to lure buyers without diminishing their brands' reputation with blatant discounting.
But as the perk spread even to nonluxury cars -- Toyota's new Scion line of entry-level vehicles come with three free oil changes -- buyers stopped thinking it was anything special. In 2004, "free maintenance" ranked 52nd in importance among consumers, out of 55 vehicle attributes measured, down from 48 five years ago, according to CNW Marketing Research, a Bandon, Ore., industry researcher. Cup holders, by contrast, came in at 19.
Not all auto makers agree that buyers don't want the free oil change. BMW plans to continue offering free maintenance for four years or 50,000 miles, including replacement of items subject to wear and tear like windshield wipers. BMW last expanded its program for model-year 2003. Lexus, meanwhile, says it has replaced its early inspection with free programming of a car's electronic features.
For buyers of cars that don't come with full free maintenance, the price of a regular checkup can vary significantly. At Keystone Motors Volvo in Montgomeryville, Pa., a typical maintenance visit averages about $200, according to Jonathan Bright in the service department.
Mercedes dealers, meanwhile, now offer two maintenance plans which customers can buy up to the first scheduled visit. The Mercedes-Benz Vehicle Maintenance Plan, includes basic service generally every 13,000 miles. Its price runs from $576 to $1,552 depending on car type and the term of the plan. Customers can buy it in periods ranging from two years or 26,000 miles to four years or 52,000 miles.
The second plan, the Mercedes-Benz Vehicle Maintenance Plan Plus, adds coverage of some wear-and-tear items and ranges in price from $1,253 to $3,928.
Mercedes eliminated free maintenance as it switched to a new service schedule that spaces out visits to the garage based on the number of miles the vehicle has been driven, instead of its previous more-flexible one which also took other factors into consideration.
Mercedes says its program was never totally free. (For instance, it didn't cover wear-and-tear.) And there are still some free elements, including a first visit between 1,000 and 3,000 miles for a diagnostic check.
*edit* I forgot to add the accomanying chart:
MAKE FREE MAINTENANCE
Audi Yes -- for now. Offers free maintenance for four years or 50,000 miles on all 2005
models.
Currently reviewing whether to continue program for 2006.
BMW Yes. All 2005 and 2006 vehicles come with a "full maintenance program" for four years or
50,000 miles that includes scheduled maintenance like oil changes and certain
wear-and-tear items such as brake pads and wiper blade inserts. BMW expanded the
length of the program for model year 2003. Upgrades are available to six years or
100,000-mile coverage.
Cadillac Yes. The Cadillac XLR comes with free maintenance for the warranty period, which
is four years or 50,000 miles.
Land Rover Yes. Offers free scheduled maintenance on LR3, Range Rover Sport, and Range
Rover for four years or 50,000 miles. The typical service is every 7,500 miles and
Land Rover only covers the first six maintenance visits.
Lexus Yes. Offers a free first scheduled maintenance at 5,000 miles or six months that includes
tire rotation and engine oil replacement. Also offers free programming of a car's
electronic features any time during the first year of ownership.
Saab Yes. Covers all scheduled maintenance for three years or 36,000 miles for all Saab
models except the 9-2X, which is covered for two years or 24,000 miles. Doesn't
include wear-and-tear items.
Volvo Yes. One free scheduled maintenance beginning with model year 2006. The first four
scheduled maintenance vists for model year 2005 are covered.
Car Makers Cut
Free Maintenance
Move by Wide Range of Brands Could Add
Thousands of Dollars to Cost of Ownership
By JENNIFER SARANOW
Staff Reporter of THE WALL STREET JOURNAL
July 7, 2005; Page D1
In an effort to trim costs, car makers are eliminating their free-maintenance programs -- a move that could cost drivers thousands of dollars in additional upkeep over the life of a vehicle.
Free-maintenance plans started as a perk among a few luxury cars, but quickly spread to become an expected part of a top-dollar vehicle. Now, however, a growing number of manufacturers -- including some of the same brands that kicked off the free-maintenance movement more than a decade ago -- are requiring new customers to pay for maintenance services like oil changes, tire rotations and other routine tasks that used to be free.
Volvo plans to significantly downgrade its program beginning with the 2006 model year, offering just one free-maintenance visit. Previously the company, owned by Ford Motor Co., covered the first four scheduled checkups. In April, Mitsubishi Motors Corp. stopped offering free maintenance to buyers of 2005 model-year cars in the U.S., and says it doesn't plan to resume offering it soon. DaimlerChrysler AG's Mercedes-Benz brand, starting with its 2005 model line in the U.S., replaced its four-year free-maintenance plan with packages customers must purchase, at a cost that can range from $576 to nearly $4,000.
For 2005 models, Toyota Motor Corp.'s Lexus brand eliminated a complimentary inspection at about 1,000 miles, though it still offers a free scheduled maintenance at 5,000 miles or six months. Volkswagen AG says its Audi unit is still deciding whether to continue to offer free maintenance for 2006 Audi models, which will be launched later this year, according to a spokesman. The company dropped free maintenance on Volkswagen models a few years ago.
Some of the manufacturers eliminating free maintenance have been cited as having repair and reliability problems, which can translate into higher warranty costs. Volkswagen, Audi, Mercedes-Benz and Volvo were among the brands that performed below average in J.D. Power & Associates' most recent Vehicle Dependability Study, released last week. In contrast, BMW AG and Lexus, which are retaining some or all of their free-maintenance programs, ranked above average in the study, which annually surveys consumers about problems with three-year-old vehicles.
A Volvo spokesman says the ranking didn't play a role in its decision to change its maintenance program. Mercedes says other rankings of quality show that the auto maker is making gains.
The cuts are happening as auto makers look for ways to trim their costs and beef up their bottom lines as the industry has struggled to reignite sales over the past year or so. In recent weeks, Ford cut its full-year earnings outlook for 2005 for the second time this year and said it would cut costs more than earlier announced.
Earlier this year, Chrysler also significantly cut its warranty on Jeep, Chrysler and Dodge vehicles, and analysts expect other auto makers to follow suit. But while new-car buyers still expect a vehicle to come with warranty coverage, auto makers say that free maintenance hasn't proved as important to customers. Mitsubishi, which started offering free maintenance on its 2004 models, found its program to be "less effective than anticipated" in getting people onto the showroom floor, a spokeswoman said. And Volkswagen, which dropped its free-maintenance program starting with its 2002 model year, at the same time extended its bumper-to-bumper warranty.
In recent months, auto makers have turned to new pricing incentives to spark sales, and are seeing some success. Earlier this week, General Motors Corp. extended until Aug. 1 its "employee discount for everyone" program, which helped the car maker in June report its best monthly sales figures in nearly 20 years.
Free maintenance first showed up on luxury vehicles in the 1980s as a way to encourage lease customers to take care of cars they didn't own. In the past decade, auto makers expanded it to all customers as a way to lure buyers without diminishing their brands' reputation with blatant discounting.
But as the perk spread even to nonluxury cars -- Toyota's new Scion line of entry-level vehicles come with three free oil changes -- buyers stopped thinking it was anything special. In 2004, "free maintenance" ranked 52nd in importance among consumers, out of 55 vehicle attributes measured, down from 48 five years ago, according to CNW Marketing Research, a Bandon, Ore., industry researcher. Cup holders, by contrast, came in at 19.
Not all auto makers agree that buyers don't want the free oil change. BMW plans to continue offering free maintenance for four years or 50,000 miles, including replacement of items subject to wear and tear like windshield wipers. BMW last expanded its program for model-year 2003. Lexus, meanwhile, says it has replaced its early inspection with free programming of a car's electronic features.
For buyers of cars that don't come with full free maintenance, the price of a regular checkup can vary significantly. At Keystone Motors Volvo in Montgomeryville, Pa., a typical maintenance visit averages about $200, according to Jonathan Bright in the service department.
Mercedes dealers, meanwhile, now offer two maintenance plans which customers can buy up to the first scheduled visit. The Mercedes-Benz Vehicle Maintenance Plan, includes basic service generally every 13,000 miles. Its price runs from $576 to $1,552 depending on car type and the term of the plan. Customers can buy it in periods ranging from two years or 26,000 miles to four years or 52,000 miles.
The second plan, the Mercedes-Benz Vehicle Maintenance Plan Plus, adds coverage of some wear-and-tear items and ranges in price from $1,253 to $3,928.
Mercedes eliminated free maintenance as it switched to a new service schedule that spaces out visits to the garage based on the number of miles the vehicle has been driven, instead of its previous more-flexible one which also took other factors into consideration.
Mercedes says its program was never totally free. (For instance, it didn't cover wear-and-tear.) And there are still some free elements, including a first visit between 1,000 and 3,000 miles for a diagnostic check.
*edit* I forgot to add the accomanying chart:
MAKE FREE MAINTENANCE
Audi Yes -- for now. Offers free maintenance for four years or 50,000 miles on all 2005
models.
Currently reviewing whether to continue program for 2006.
BMW Yes. All 2005 and 2006 vehicles come with a "full maintenance program" for four years or
50,000 miles that includes scheduled maintenance like oil changes and certain
wear-and-tear items such as brake pads and wiper blade inserts. BMW expanded the
length of the program for model year 2003. Upgrades are available to six years or
100,000-mile coverage.
Cadillac Yes. The Cadillac XLR comes with free maintenance for the warranty period, which
is four years or 50,000 miles.
Land Rover Yes. Offers free scheduled maintenance on LR3, Range Rover Sport, and Range
Rover for four years or 50,000 miles. The typical service is every 7,500 miles and
Land Rover only covers the first six maintenance visits.
Lexus Yes. Offers a free first scheduled maintenance at 5,000 miles or six months that includes
tire rotation and engine oil replacement. Also offers free programming of a car's
electronic features any time during the first year of ownership.
Saab Yes. Covers all scheduled maintenance for three years or 36,000 miles for all Saab
models except the 9-2X, which is covered for two years or 24,000 miles. Doesn't
include wear-and-tear items.
Volvo Yes. One free scheduled maintenance beginning with model year 2006. The first four
scheduled maintenance vists for model year 2005 are covered.
Last edited by np20412; 07-07-05 at 12:49 PM.
07-07-05, 03:47 PM
#4
Lexus Diva
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The 1,000 mile inspection was just that...an inspection. No oil change. Just checking to make sure your car is breaking in properly, a free car wash, and a introduction to the service department. They have replaced it with the C-Best which is the customization of certain controls (i.e. how long your lights stay on, which doors unlock with remote, moonroof open with remote, etc.) The switch over started around last October/November. Since they never did much on the 1,000 mile, I'd just bring my cars in to take advantage of the free car wash because I'm so lazy!
07-07-05, 09:18 PM
#5
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The free 1,000 mile inspection is pointless. I am surprised it didn't get the axe earlier. I didn't even bother with it, just came back in 5,000 miles for the oil change service. I am not wasting my time at the dealer to have them do a lookover when nothing is wrong with the car.
07-08-05, 07:36 AM
#7
Lexus Fanatic
Originally Posted by AsianGirl007
The 1,000 mile inspection was just that...an inspection. No oil change.
Last edited by mmarshall; 07-08-05 at 07:54 AM.
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07-08-05, 08:44 AM
#8
Lexus Fanatic
iTrader: (20)
Originally Posted by mmarshall
The 1000 mile oil change to get the shavings out after break-in, granted, is not something that is on the schedule but IMO SHOULD be. I recommend it for all vehicles except Honda / Acura which use special break-in oil at the factory. The post-break-in oil change is THE single most important one an engine will get in its lifetime.
07-08-05, 08:56 AM
#9
Lexus Connoisseur
I believe in break in period but 1k oil change is overkill imho. As long as you follow the factory standard for break in, you will never have problems with your valve cover gaskets leaking oil during it's lifetime.
07-08-05, 10:45 AM
#10
Lexus Fanatic
Originally Posted by bitkahuna
There aren't any 'shavings' these days - engines are thrashed at the factory before they're shipped out anyway.
However, you may have something, considering that the average life of a Toyota or Honda-built engine these days is 200,000 miles and up, even without the first 1000-mile change. Honda, as I indicated in my last post, is adamant about the 3000-mile factory break-in oil....they do NOT want it drained before 3000 miles, which is why I never recommended it for Honda products.
The 3.0L Toyota / Lexus V6 has had oil-related problems, ( discussed extensively here at CL ) but that comes from extended negligence, not just skipping an initial 1000-mile change.
Anyhow, the topic...the Lexus 1000-mile Inspection. I agree with Asian Girl ( Liz ? ) that the way it stands now, it really doesn't count for much.....other than, on rare occasions, MAYBE finding a leak or something like that from a bad seal put on at the factory. And many dealerships can....and do.....have the service department orientations one evening each month for a whole group of new customers, not just automatically at 1000 miles on each car.
07-08-05, 09:35 PM
#12
Lexus Fanatic
I'm a firm beleiver in the 1000k oil change. not only the chance of metal shavings, but what about assembly lubes or other contaminants that could be in the oil? why risk it on your brand new Lexus for $39?
also, the 1k inspection can't hurt-if something is not right it may surface already by then.
also, the 1k inspection can't hurt-if something is not right it may surface already by then.
07-08-05, 10:03 PM
#13
Lexus Fanatic
iTrader: (20)
Originally Posted by chuckb
I'm a firm beleiver in the 1000k oil change. not only the chance of metal shavings, but what about assembly lubes or other contaminants that could be in the oil? why risk it on your brand new Lexus for $39?
also, the 1k inspection can't hurt-if something is not right it may surface already by then.
also, the 1k inspection can't hurt-if something is not right it may surface already by then.
07-09-05, 10:43 AM
#14
Lexus Fanatic
Originally Posted by bitkahuna
Cars just aren't assembled and shipped right away any longer. The engines are run, HARD, before they leave the factory. You'll probably never abuse an engine like they do at the factory!
07-09-05, 10:49 AM
#15
Super Moderator
Originally Posted by bitkahuna
Cars just aren't assembled and shipped right away any longer. The engines are run, HARD, before they leave the factory. You'll probably never abuse an engine like they do at the factory!