What is Block Exemption?
Published Date: 17th Aug 2014
In the past, motorists were always required to have their vehicle serviced or repaired at a main dealer, so they did not risk invalidating the vehicle's warranty.
This allowed main dealers a monopoly on all warranty and service work and basically charge whatever they wanted; with this came allegations of price fixing. The EC Block Exemption Regulation was introduced in October 2003 and allowed motorists more flexibility in selecting where they can get their cars serviced or repaired.
The Block Exemption Regulation (BER) covers all service and maintenance during the warranty period and prohibits vehicle manufacturer’s warranties from including the following conditions:
Maintenance is to be provided within the vehicle manufacturer’s dealer network
All parts used must be the manufacturer’s original spare parts
For more detailed information on the recent updates, you can read our comprehensive article on the New Block Exemption Update.
Thanks to this legislation, maintenance and service work no longer have to be carried out by a Main Franchise Dealer as long as the garage you choose uses original equipment, matching quality parts, is recorded as doing so, and completes the work in accordance with the manufacturer's service schedules you will maintain your vehicles warranty.
So what does this mean to the motorist? You Save Money!!!!
BER safeguards free competition in aftermarket parts, repairs and services and will benefit New Car Buyers by reducing the cost of servicing through better labour rates and competitively priced parts.
Not servicing your car at the main dealer and choosing an independent garage can save you up to 60%.