A shake-up in the automotive aftermarket sector, with the release of the Competition Commission’s final guidelines, which was hailed as good news for consumers, smaller players and new entrants to the market. The shake-up means that from July 1, vehicles under warranty can be taken to any competent workshop for repairs or services.
The Competition Commission’s investigation had been triggered by complaints by consumers as well as independent operators. Initially intended as voluntary, the guidelines are now compulsory, which means the sector must comply.
The Right to Repair (a leading voice lobbying for inclusion), the Motor Industry Workshop Association, the Motor Industry Federation, African Panel beaters Motor Mechanics Association, the Tyre, Equipment, Parts Association and the Automotive Remanufacturers’ Association represented repairers and others in the aftersales value chain. The automotive sector comprises the primary manufacturing market and the aftermarket, which includes vehicle retail, the sale of spare parts and equipment, service, maintenance and repairs.
Les McMaster, director at Right 2 Repair, called the guidelines a “nice Christmas surprise” because the guidelines were delayed and only expected next month.
“We didn’t get everything we wanted but we’re happy with most of it, particularly on data-sharing (with parts coded to VIN numbers) and in-warranty servicing, from which we had been excluded for years of the vehicle’s lifespan. It’s a win-win.”
McMaster said the four main benefits to motorists are freedom to shop around; freedom of choice during the warranty period; access to technical information and training by Independent Service Providers; and insurance.
Original equipment manufacturers cannot bundle service plans or motor plans and other value-added products or add-ons with the sale of motor vehicles any longer, he said, because they need to be offered as separate products showing the cost and saving for the consumer. “Consumers must insist on getting full disclosure of a vehicle’s purchase price, the prices of service and maintenance plans and other products, all information regarding the maintenance and repair of their motor vehicle, as well as the terms and conditions under which they are required and/or permitted to maintain and repair their vehicle.”
A warranty cannot be voided if a customer chooses to have their vehicle maintained or repaired at an independent service provider. Fitting non-original parts or accessories can also not be penalised.
Insurers are also now obliged to advise customers that they have the right to repair or service their vehicles at a service provider of their choice.
Finally – a win for independent service providers: independent workshops to get the same technical information, programming tools and training as the OEM-approved workshops, as well as access to original spare parts.
like this