Cheaper Car Servicing Block Exemption Update
Published Date: 14th Jul 2024
For many new car buyers, the natural inclination is to take their new vehicle to a franchise dealer for servicing. It seems like the obvious choice, ensuring your car remains under warranty and benefiting from the dealer’s expertise. Franchise dealers are equipped with the latest diagnostic tools and have direct access to manufacturer parts, which can be reassuring.
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However, this decision can come with a hefty price tag, as services at franchised dealers tend to be more expensive compared to independent garages. Additionally, some independent garages offer highly skilled mechanics and competitive prices, which might be worth considering for your maintenance needs.
Understanding Block Exemption
The European Commission's Block Exemption Regulation (BER) and the UK's Competition Act of 1998 revolutionised car servicing rules, providing significant benefits for consumers. Introduced in 2003 BER allows motorists to have their vehicles serviced or repaired at independent garages without voiding the manufacturer's warranty. This regulation covers all service and maintenance during the warranty period, prohibiting vehicle manufacturers from enforcing restrictive conditions such as:
- Requiring maintenance within the manufacturer’s dealer network.
- Mandating the use of the manufacturer’s original spare parts.
Thanks to BER, as long as the independent garage uses original equipment, matching quality parts, and follows the manufacturer's service schedules, your warranty remains intact.
The Block Exemption Regulation 1400/2002 (BER) ensures that a vehicle's warranty remains valid as long as the replacement parts used are of equivalent quality to the original components. This means the parts must adhere to the same specifications and production standards established by the vehicle manufacturers.
Benefits of Using Independent Garages
Cost Savings: Independent garages often offer significantly lower labour rates compared to franchise dealers. By choosing an independent garage, you can save up to 60% on servicing costs.
Competitive Pricing on Parts: The BER ensures that repairers have access to alternative spare parts, which can be considerably cheaper than original manufacturer parts without compromising on quality.
Enhanced Competition: The regulation encourages competition in the automotive repair market, driving down prices and improving service quality. This competitive environment benefits consumers by providing more options and better value.
In 1998, the UK government passed the Competition Act to align with EU regulations designed to prevent anti-competitive, monopolistic practices. Before this act, auto manufacturers often limited access to replacement parts and maintenance manuals, locking drivers into costly service plans with specific manufacturer garages. The Motor Vehicle Block Exemption Regulations (MVBER), which came with the Competition Act, allowed independent garages to perform maintenance and repairs without voiding warranties, provided they had access to the necessary diagnostic equipment, parts, and repair guides.
The MVBER was due to expire on May 31, 2023, but it was renewed and updated on June 1, 2023, to keep pace with the evolving UK auto industry. A significant update included ensuring access to necessary software, as modern cars are increasingly reliant on sophisticated, closed software systems. This extension, which will remain in effect until May 31, 2029, includes important changes such as broadening the terminology to include "fluids" instead of just "lubricants" and ensuring "full repair and maintenance information" is available rather than just "technical data."
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There is a common misconception that only franchise dealers can provide the level of service required to maintain a car’s warranty. Many car owners believe that visiting an independent garage might void their warranty or result in subpar service. However, the Block Exemption Regulation (BER) debunks this myth, ensuring that independent garages equipped with the right tools and parts can offer the same quality service. This regulation allows car owners more flexibility and freedom of choice when it comes to maintaining their vehicles, ultimately promoting fair competition and benefiting consumers with potentially lower costs and more personalised service.
- Expertise and Training: Many independent garages employ highly skilled technicians with extensive training and experience.
- Personalized Service: Smaller, independent garages often provide a more personalized service, taking the time to understand and address your specific needs.
- Convenience: Independent garages are often more conveniently located and flexible with appointment scheduling.
Choosing an independent garage for your car servicing not only saves you money but also supports local businesses and encourages a competitive market. The Block Exemption Regulation empowers you to make informed choices without the fear of voiding your warranty.
New car buyers often choose franchise dealers for servicing due to their perceived expertise and access to manufacturer parts, but these services are more expensive than those provided by independent garages.- The European Commission's Block Exemption Regulation (BER) and the UK's Competition Act of 1998 allow servicing at independent garages without voiding the manufacturer's warranty.
- BER prohibits restrictive conditions, such as mandatory maintenance within the manufacturer's network and the use of only original spare parts.
- Independent garages offer lower labour rates, saving up to 60% on servicing costs. Access to alternative spare parts reduces costs without compromising quality.
- The 1998 Competition Act aligned the UK with EU regulations to prevent monopolistic practices, allowing independent garages to perform maintenance and repairs without voiding warranties.
- The Motor Vehicle Block Exemption Regulations (MVBER) were renewed on June 1, 2023, to keep pace with the evolving auto industry and included access to necessary software for modern cars.
- BER debunks the misconception that only franchise dealers can maintain warranty and service quality. It ensures that independent garages can offer equivalent services, promoting fair competition.
- Independent garages provide highly skilled technicians, personalised service, convenient locations, and flexible appointment scheduling, making them a cost-effective and reliable choice for car servicing.
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