Friday 19th December 2003

Flash Dealer or Oily Specialist?

It shouldn't matter as far as your warranty is concerned

---

Warranty Direct is warning that action may be required to implement the OFTs call for a lifting of the restrictions on where new cars may be serviced while under warranty.

Most new car owners are too nervous to have their car serviced at independent garages because many manufacturers will question the validity of the servicing work when warranty claims are made. This is despite the law requiring warranties to be honoured regardless of who has done the servicing. The only requirement is that the correct service schedules have been adhered to.

Duncan McClure Fisher, managing director of Warranty Direct explained: "Past precedence shows that franchised dealers and manufacturers fail to heed ‘advisory’ comment from the authorities. I expect the threat of a full investigation under EU competition law from the OFT will become reality in due course. "

He added: "Educating the consumer of their rights is one thing, but dealers have an uncanny capacity to say no when it doesn’t suit them ."

Research conducted by Warranty Direct in the summer highlighted the disparity in labour rates between franchised dealers and independent garages.

"Over the past five years franchised dealer rates have risen by an average 44 percent to £76 an hour compared to between £28-41 from independent garages. The lack of competition has allowed some franchised dealers to think they can get away with charging more than £100 an hour. That is simply ludicrous ."

McClure Fisher finished his rant with: "Customers are having to pay more and more for the salubrious surroundings of a franchised operation. It’s also a bit ironic that as new car prices have tumbled, squeezing dealer profit margins on the way, labour rates have rocketed and the desire to keep customers ‘inside the network’ even greater ."

The OFT estimates that the motorists having their vehicles serviced at franchised dealers pay an average of £199 per visit compared to £116 from independent specialists. On this basis, the Government agency believes consumers are paying up to an extra £500m per year more.

[ruthingator]

Not before time! I am well aware that franchise garages charge well over the odds for both service and parts. In my experience the people that do the servicing are apprentices who don't see a fraction of what the garage is charging.

[pbrettle]

As commented in the story - its about education! I used to run a Lex company car Citroen - ended up being serviced at a Ford garage. Never had any trouble and it was all under waranty - simply because they followed the procedures for the service intervals...... Ok, so thats an extreme example, but we have the right to shop around, so lets do it...

[daver]

So nice of the Government to be worrying about how much OTHER people are ripping off the motorist.

[chrisjl]

The article said:

...despite the law requiring warranties to be honoured regardless of who has done the servicing.

If I keep receipts for parts/fluids, does that include me, the owner?

[mikes]

My local Peugeot dealer wanted around £80 to change the oil and filter. Walking through the internal door to the Peugeot Rapid Fit and they only wanted £25 for the same oil and filter to be fitted - bonkers, but they get away with it.