Audi drops free Maintenance

[IndyMike]

Diana T Kurylko/Automotive News
February 12, 2006

'Audi of America will end its free maintenance program beginning with the 2007 model year, much to the distress of dealers.

Called the Audi Advantage, the four-year/50,000-mile program was established in the late 1980s as a way to restore consumer confidence and jump-start the brand in the United States. Only a few auto companies offer free maintenance - but they include a chief Audi rival, BMW.

"They are getting rid of it because of costs. Dealers feel it is a large advantage," said Tom Harper, incoming chairman of the dealer council, Sunday after the make meeting. Harper owns Harper's Porsche-Audi-Jaguar-Volkswagen-Infiniti-Acura in Knoxville, Tenn.

Audi will provide some free service during the first year of ownership.

Dealers want Audi to consider a modified program for repeat customers. "It is important to those who have second or third car," said Harper.

There's no doubt some loyal customers may be disappointed, said Johan de Nysschen, executive vice president in charge of the Audi brand.

"There is that danger, I have to acknowledge it," said Audi's U.S. chief.

De Nysschen said Audi needs money to fund a proposed increase in the dealer margin.'

Audi is taking a really big risk here.

Will this potentially impact anyone's decision in purchasing Audi products? :wink2:

[lemming]

personally?

i think it's a mistake for them. audi needs some intangibles to compete seriously with BMW and MB and this is one of them that could often work into a dealer's favor at transaction time when they're telling the frowning couple deciding among cars: "well, hey! we have free maintenance, too.......can so and so say that?"

now they cannot say that.

or does it really matter, anyway?

[TD]

Correct me if I'm wrong here but didn't Mercedes already drop it?

[undefined]

yeah, maybe 2 years ago

[lemming]

yeah, but.

do you honestly think MB needs the same push at the F&I guy to sell cars that Audi does?

MB is the franchise and is typically a different demographic than Audi is --i'd argue that Audi, often seen as fancy VWs by cynics (me), needs more help to sell cars than MB does.

[lemming]

just to drive home my point:

2005 sales:

BMW 197,833
MB 183,017
Lexus 151,226
Acura 151,662
Infiniti 94,901
Audi 83,066

* um, as we know, Infiniti sales are pretty pathetic. so what does that make Audi, who now takes away their in-dealer advantage of free maintenance?

[rumatt]

Will this potentially impact anyone's decision in purchasing Audi products? :wink2:

Not me.

BMW maintenance is mostly meaninglessto me. The torture of having to visit the dealer offsets the minimal savings over a DIY.

I'll go for the brakes when they're due because the cost is not insignificant... but I might skip the next oil change. Just not worth my time.

[SCA]

Word on the street is that BMW is considering dropping it also. We'll see...

[John V]

Not me.

BMW maintenance is mostly meaninglessto me. The torture of having to visit the dealer offsets the minimal savings over a DIY.

:+1 Dealers suck.

[wdc330i]

Word on the street is that BMW is considering dropping it also. We'll see...

This was a question on a recent after-buy interview I had with BMW. They asked whether the free maintenance was a factor in my decision to buy a BMW over other brands. Of course, I answered yes. But it did make me think they're pondering dropping it.

[rumatt]

Word on the street is that BMW is considering dropping it also. We'll see...

If it lowers the cost of the vehicles (which it should) then I'm all for it.

[TD]

If it lowers the cost of the vehicles (which it should) then I'm all for it.
I wonder how much cost they built in for it.

A typically buyer gets 3 free oil changes out of the program. That's it.

Granted that's offset by Nick (or was it Nate) and his 3 sets of brakes.

But three oil changes, at cost, isn't that much money.

If it's $500 into the cost of the car, I'd rather do tham myself.

[JST]

If dropping the free maintenace a) reduces the burden on dealers, making them more responsive to real problems, and b) reduces the inclination on the part of BMW to adopt insane service schedules that have more to do with cost reduction than engineering, I'm all for it. As TD says, under the current system you get a couple of oil changes and an Inspection I out of the deal, which isn't much in the scheme of things.

[rumatt]

Don't most people get one set of brakes too?

[TD]

Don't most people get one set of brakes too?
Most people don't wear through their brakes until well after 50K miles.

[wdc330i]

If dropping the free maintenace a) reduces the burden on dealers, making them more responsive to real problems, and b) reduces the inclination on the part of BMW to adopt insane service schedules that have more to do with cost reduction than engineering, I'm all for it. As TD says, under the current system you get a couple of oil changes and an Inspection I out of the deal, which isn't much in the scheme of things.

I didn't even get Inspection I. But my 2002 had only a 3-year plan. I did get some windshield wipers along with my oil changes.

[Rob]

It doesn't matter how useful the maintenance actually is. Most buyers of these brands don't do their own maintenance and don't know how to do it if they need to. They don't understand it's only 3 oil changes that should cost $60 each at most. They understand the dealer says it's "oil service and safety inspection" that they would charge $500 for b/c the salesman tells them so. It's a strong sales tool, imo, and doesn't cost much considering cars don't need service more than once every 200k miles once the manufacturer took over maintenance costs. Audi is being foolish and driving customers right over to Mercedes.

[lupinsea]

Maybe I'm being naive but I see it partly as an indication of how well the automaker thinks of their car. If the car is built well enough that there's not going to be problems, heck, why not offer extended warranties or "free" maintenance? Cost is minimal and it's one more feather to stick in their advertising cap.

With Audi abandoning their "free maintenance" it seems an indication that it was costing them too much money. Why? Is it because their cars are more expensive to maintain due to sub-par reliability?

The other thing is that I can see the long warranties / maintenance used to lure customers, too. Although, by looking at the sales number it seems that perhaps Audi needs to lure more customers.

This second issue (longer warranties as a lure) is one reason my cousin bought a Kia. They were offering a 10 yr 100,000 mile warranty. And considering how hard he is on cars this was a good idea for him. It turns out that in less than 2 years he burned through the 100,000 mile warrantly limit. At 110k miles he finally sold the Kia and reported ZERO problems.

Ok, I guess I don't get this. The Kia is a cheap Korean car costing 1/3?, 1/4? what a BMW/Audi costs and he has zero problems with it for 100k miles. Compared to finely engineered German cars such as BMWs which seem to need new control arms every 40k, new radiators every 70k, have continual window regulator problems, etc. etc. etc. :scratch:

Wait a minute. . . . I think I got off track a bit.

[Rob]

Based on my friend's experiences, your friend was lucky. Very lucky. :p

[lip277]

I'd rather have the maintenance on my dime and per my schedule.

Needless to say - I don't follow the oil life indicators or other 'helpers'.

3 or 5 thousand miles. Period

Brake fluid - FYI - The Chrysler vans used to (maybe still do) state that the brake fluid is good for the 'life of the vehicle' so it is not covered on any of their schedules regardless of who pays for it- Yeah, right. You have to specifically ask for it to be done.

:rolleyes:

[John V]

I'd rather have the maintenance on my dime and per my schedule.

Needless to say - I don't follow the oil life indicators or other 'helpers'.

3 or 5 thousand miles. Period

Brake fluid - FYI - The Chrysler vans used to (maybe still do) state that the brake fluid is good for the 'life of the vehicle' so it is not covered on any of their schedules regardless of who pays for it- Yeah, right. You have to specifically ask for it to be done.

:rolleyes:

Exactly. Perfectly highlights the ridiculousness of "free maintenance." Everything is becoming lifetime fill - trans / diff fluid and brake fluid. It only makes sense if you plan to keep the car only until the warranty period ends and then trade it back into the dealer so they can "recondition" it and sell it as CPO. :ack:

[John V]

This second issue (longer warranties as a lure) is one reason my cousin bought a Kia. They were offering a 10 yr 100,000 mile warranty. And considering how hard he is on cars this was a good idea for him. It turns out that in less than 2 years he burned through the 100,000 mile warrantly limit. At 110k miles he finally sold the Kia and reported ZERO problems.

My girlfriend's parents bought a couple Hyundai Elantras in 2000 when they were starting the 100,000 mile warranty. Those cars have been incredibly reliable for them.

[stuka]

I wonder how much cost they built in for it.

A typically buyer gets 3 free oil changes out of the program. That's it.

Granted that's offset by Nick (or was it Nate) and his 3 sets of brakes.

But three oil changes, at cost, isn't that much money.

If it's $500 into the cost of the car, I'd rather do tham myself.

I know we are the tiny minority when it comes to getting our $$ worth. But if my M3 was not wrecked, I was on track to get oil service, inspection 1, oil service inspection 2, and oil service again plus 5 sets of pads and rotors. That sounds pretty sweet, BMW footing my track bill.

[FC]

I expect to get a change of rotor/pads and maybe even Inspection 2 if I drive my car hard enough the next 11 K miles, but probably not. It will probably call for Inspection 2 @ ~55K miles.

My car was in dire need of a brake fluid flush at 28K miles (free @ 2 years while on Inspection 1).

I change my oil once in between the free BMW oil change sor roughly every 7K miles.

[SARAFIL]

De Nysschen said Audi needs money to fund a proposed increase in the dealer margin.'


Funny... Audi is cutting free maintenance to add to the dealer margin.

BMWNA is keeping full maintenance, but they are cutting the dealer margin by 1% starting with 2007 models.

[SARAFIL]

Most people don't wear through their brakes until well after 50K miles.

:dunno:

I'm not a very hard driver, and my car required front brakes at 21k miles and when I did the CPO inspection they told me I'd need rear brakes soon (probably around 35k miles). I've also gotten the 15k and 30k and a few sets of wiper blades.

Before my 4/50 expires, I'm going to get another oil service plus another brake flush and a coolant flush. I'm tempted to find a way to get a new clutch before I hit 4 years also...

[lemming]

:dunno:

I'm not a very hard driver, and my car required front brakes at 21k miles and when I did the CPO inspection they told me I'd need rear brakes soon (probably around 35k miles). I've also gotten the 15k and 30k and a few sets of wiper blades.

Before my 4/50 expires, I'm going to get another oil service plus another brake flush and a coolant flush. I'm tempted to find a way to get a new clutch before I hit 4 years also...

so it's not trivial to have free maintenance, as several of you have pointed out. yet another reason why friends don't let friends buy VAG products then!

[TD]

:dunno:

I'm not a very hard driver, and my car required front brakes at 21k miles and when I did the CPO inspection they told me I'd need rear brakes soon (probably around 35k miles). I've also gotten the 15k and 30k and a few sets of wiper blades.

Before my 4/50 expires, I'm going to get another oil service plus another brake flush and a coolant flush. I'm tempted to find a way to get a new clutch before I hit 4 years also...
I generally get ~20K out of fronts.