New EU rules now allow owners of new cars to have services under warranty to be done in garages of their choice. Daniel Attwood reports
Many owners of new cars assume they must have their car serviced by the franchise dealer from whom they bought the car in order to protect their warranty. News that they can now get their car serviced elsewhere may come as a surprise.
New EU regulations which came into force last year mean that motorists can now get their new car serviced at a garage of their choice without affecting the warranty, so long as the parts used are of a similar or better quality to those originally fitted.
With the arrival of the new rules, independent dealers and repairers anticipated an increase in the number of motorists using their service centres. After all they say, they can offer the same levels of service and the same quality of parts and all generally at a lower cost.
Sean Lawless, a director of Moprod, a vehicle parts wholesaler, explained: "Motorists now have the freedom to have their car serviced where they chose, and there are certain advantages to this, not least is the lower prices they will pay for their parts."
However, car manufacturers say customers want more than cheaper parts. "With today's models, the requirement for fully trained technical staff is greater than ever," says Eddie Murphy, managing director of Ford or Ireland. "The relationship that the customer enjoys with the dealer is further insurance of quality workmanship. If standards slip, the dealer has a lot more to lose than the value of the service or repair - he may ultimately lose a lifelong customer.
"Besides, the dealer knows he will typically be faced with selling on the same car when it comes to a trade-in."
The expected increase in the business of independent garages has not yet materialised. They say this is down to a lack of public knowledge about the changes. But the car manufacturers' reaction, which has been to fight to retain - and increase - their share of the lucrative service sector, also has a lot to do with it.
Motorists have traditionally had cars serviced at dealership where they were bought, or at a dealership in the same franchise network. Prices have generally been higher, but there was no choice if the car was still under warranty. With the new regulations, which were designed to bring more competition into the servicing market, now in force, car manufacturers have come forward with a range of incentives and initiatives aimed at keeping customers loyal to their networks of dealers.
BMW moved quickly to introduce its Service Inclusive package. This offers a five-year package including all service and associated parts costs when they buy their new car.
Opel has taken a difference stance. Meeting the independent part sellers head on, it has just introduced its Trade Club here and plans to extend it throughout Europe. Membership means that motor factors - the middlemen who sell parts onto garages - can now buy genuine Opel parts at reduced prices from the country's Opel dealers and then sell them onto independent garages.
Opel admits that the move has meant both it and its dealers have had to reduce margins on a basket of their best-selling parts, but it says it's worth it. It expects to capture up to €500,000 worth of extra parts trade.
As a result, the impact of recent changes to the EU regulation, known as Block Exemption, on the service market has been limited.
But this is not all down to lack of public knowledge and aggressive car manufacturers. People who have bought new cars want to ensure their investments are protected. By getting their new car serviced at an independent garage they may be saving money, but the question over who covers a breakdown immediately arises.
This should not be an issue, says Sean Lawless: "If a part is faulty, then the supplier will replace it." This would be the same if the part was fitted by a franchise dealer or an independent garage.
But to ensure the warranty cover is not lost, all parts used must be certified as being of the same or better quality than the original parts fitted to the car. And, at present, it has been left to parts manufacturers to self-certify the quality of their parts.