With lots of great options available, it can be hard to know which service agreement is right for your business and truck.
In this blog, Glenn Jones, the National Service Business Manager of Isuzu Australia Limited (IAL) explains the different types of service agreements, the purpose behind the packages and how they can assist with managing the whole-of-life cost of your truck.
Hi Glenn, for those who may not be familiar with the term, what is a service agreement?
Truck owners can often wonder what a service agreement is and how it is different from attending a regular scheduled service.
A service agreement is usually organised at the time of purchase for a new truck by your sales consultant but can also be purchased later on if you’re looking to streamline costs and set up your truck servicing schedule. Essentially, it’s a package that lays out set monthly payments that covers scheduled services, oils and lubricants, small accessories and parts replacements over time, building up to larger parts replacements given regular wear and tear.
Having the cost of servicing and future parts replacements packaged up monthly means there are no surprises ‘on the day’ and can make budgeting easier for the business.
Where is the best place to start in choosing an agreement?
Doing a bit of online research is a great place to start. I suggest having a look at what OEMs have on offer before you go in for a test drive, so you can go into the buying process with a clear understanding of the benefits and packages available. You can then ask for further information at the dealership.
Most OEMs have information on service agreements on their website. Isuzu Trucks has a dedicated page breaking down the different types of service agreements and which trucks they’re suitable for.
A good sales consultant can inform you of the options and costs and help you choose the right one, but it never hurts to do your own initial research.
Are there other benefits to a service agreement, other than streamlining costs?
As any business owner knows, equipment downtime can be a real killer—and a service agreement can help you manage this issue for your fleet. It’s important to think about it as a long-term investment. The care you put into maintaining your fleet will be returned to your business over the months and years and help to manage the whole-of-life cost.
The dealership will use genuine OEM parts when it comes to replacement under a service agreement, and this can be another way of saving money in the long run. Genuine parts are engineered and tested specifically for the truck model, leading to better longevity and performance.
There are options for roadside assist programs and overnight servicing which can help to reduce your downtime and even extras like dealership staff collecting your trucks when it’s time for their scheduled service.
How do you decide which service agreement is the right one?
The dealership can inform you of the costs involved and draw up a service agreement that will suit your requirements—you can think of it as having health insurance for your truck fleet. A higher level of cover can provide extra peace of mind, but it might not suit everyone.
The package that is right for you will depend on the business needs, the size of your fleet and the type of trucks.
Isuzu Trucks offers four different service agreements which can be tailored to suit a customer’s business and operating needs.
For newer trucks, we have three packages Isuzu Total, Isuzu Essentials Plus and Isuzu Essentials:
This service agreement is the most comprehensive and is offered on newly purchased Isuzu trucks. It covers a broad range of genuine replacement parts such as filters, light globes, wiper blades, fan belts, engine components, brake and transmission components, along with lubricants, oils, and more.
In addition, Isuzu Total offers extended add-on options with Extended Care, Extended Assist and after-hours servicing.
This service agreement is for customers with new trucks and is packaged with an upfront payment that covers the truck’s first three regular services up to 36 months, or 60,000 km service (whichever comes first). It covers filters and lubricants, washer fluids, valve adjustments, consumables and labour. It’s a great option for streamlining costs when you may not require all the add-ons and extras of Isuzu Total.
The Essentials Plus package includes everything covered in Isuzu Essentials along with additional items such as filter replacement, lubricants, wiper blades, light globes, fuses and fan belts, on a monthly payment plan. This service agreement opens up further options for genuine parts replacement if desired.
Is there a service agreement available for older trucks?
Isuzu Trucks offers Isuzu Heritage which is specifically for trucks that are between three years and fifteen years old or that have clocked over 100,000 km. This agreement includes scheduled services, oils and lubricants and replacement parts that come under our Isuzu Best Value Parts range, which suits older Isuzu truck models.
Even if you don't have an existing service agreement, you can still find a great option that will help streamline your budget and reduce the remaining whole-of-life cost of your truck.
Thanks, Glenn!
Considering a future career with trucks? Check out our Q&A with service tech star Brad Hickey to hear about his career as a truck service mechanic.
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