Most new cars and trucks today have limited powertrain warranties that range anywhere from 4 years/50,000 miles to 10 years/100,000 miles and if your new vehicle requires repair while still under warranty then it’s a safe bet that most owners will return to the authorized dealer to have that service rendered. But once the warranty expires, many owners choose to have their vehicle serviced at independent garages or national chain stores such as Midas or Aamco where parts and labor charges are often far less expensive.
One manufacturer has created a way to keep customers coming back to their dealers for service and repair after the warranty expires and that manufacturer is Volvo. It’s an ambitious plan to generate customer confidence while at the same time increasing service department revenues for their North American Dealer Network. Volvo is calling it their “Pay Once and Never Pay Again” plan and from what we can tell here at Horsepower Broadcasting, it’s a plan that will in all likelihood be copied by other manufacturers.
Essentially, the program offers a lifetime warranty on parts and labor for most service or work performed at one of its authorized dealers. So if you bring your older Volvo in for service to the dealership, you’ll pay once and won’t have to pay for either the parts or the labor again if something goes wrong. It’s a win-win situation for both the dealer and the customer and it’s part of what the company presents as the ‘Volvo Service Advantage’, which also includes free software updates, diagnostics, a loaner vehicle and a car wash. The coverage is limited strictly to replacement parts, and doesn’t include accessories or wear items such as brake pads, oil filters, drive belts, etc.
Another advantage for the dealer is the continual opportunity to showcase the new product lineup to customers with aging models. Volvo service departments will have three or more opportunities throughout the year to stimulate their service customers interests in a new model.
One model that we have been impressed with is the new XC90, not only does it look good but the 2.0 liter Supercharged-Turbocharged 4 cylinder is one of the most efficient engines on the market today. It produces 316 horsepower and is mated to an eight speed electronic transmission that is geared very well. The sticker on the new XC90 runs about $50,000 and while it’s not the least expensive car on the lot, it’s definitely a lot of bang for the buck.
We like the “Pay Once and Never Pay Again” plan and we like the new Volvo lineup as well. Let’s see how many other product lines copy suit….
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