No more Service Plans or Maintenance Plans...

[Mad Manny]

An article from Adventure Afrika (link below)...
https://www.facebook.com/AdventureAvont ... 2654461970

Right To Repair.
The consumer watchdog announced on Friday last week that as of 1 July 2021 vehicles will not be sold with Service or Maintenance plans and that you as consumer can decide where to repair or service your vehicle without it affecting your vehicles warranty. This opens up servicing of vehicle to any local mechanic in SA, whether they are part of an OEM or not. You as consumer would be able to decide if would like to purchase a service or maintenance plan with your new vehicle. How would this impact your purchase – Let us know in the comments below!

[Johannes]

How would this affect the price of vehicles ? Price should be cheaper ?? Or not ?? Service plans are worked into price of vehicles ?

[Mad Manny]

Well, prices should drop slightly.
Warranties would become shorter.
OEM parts (where over priced) may become cheaper.

Not sure how Kia will still offer that 5 year 150000km warranty if they cant control who services it.

BMW's etc who's resale only exists due to the warranty & Maintenance plan will drop in value.

[Mad Manny]

https://www.moneyweb.co.za/news/south-a ... to-change/

"Interventions by the Competition Commission to open up the automotive aftermarket are expected to result in far-reaching benefits for consumers and small, independent and historically disadvantaged service providers from July 1, 2021.

These benefits include:


* Promoting consumer choice in the purchase of vehicle maintenance and service plans.
* Promoting the rights of consumers to use original or non-original spare parts during the lifespan of their vehicle.
* Removing original equipment manufacturer (OEM) restrictions in the sale and distribution of original parts.
* Allowing small, independent and historically disadvantaged service providers to undertake service, maintenance and repair work while a vehicle is in-warranty.
* Encouraging more historically disadvantaged individuals (HDIs) to own dealerships.
* Ensuring the fair allocation of repair work by insurers to service providers on their panels.
^ Enabling independent service providers to access OEM training and technical information.

This follows the commission last week publishing the final guidelines for competition in the South African automotive aftermarket.

The guidelines also place a responsibility on all industry players to disclose certain information to consumers to enable them to make informed choices, and address consumer safety.

[HenriSteyn]

Well, prices should drop slightly.
Warranties would become shorter.
OEM parts (where over priced) may become cheaper.

Not sure how Kia will still offer that 5 year 150000km warranty if they cant control who services it.

BMW's etc who's resale only exists due to the warranty & Maintenance plan will drop in value.

I suppose the marketing companies will be scrambling to come up with new sales strategies.

Either Hyundai or Kia have a 7 year warranty. And that is virtually all they advertise. Very little about the vehicle capability.

The latest Toyota Fortuiner add really goes in another direction. Buy one for connectivity to internet. The mind boggles......

[BushWacker]

Warrantees ... these are going to become shorter and a LOT more conditional with a LOT more 'Small-Type' ...
Prices of NEW vehicles should indeed consequently be lower.

Key aspects of this change will relate to :
1. Quality, integrity and value of parts applied in Service and Maintenance ... cheap inferior Pirate Parts need be claused out of signed contracting agreements.
2. Professionalism and Specialisation and 'Recognized Capability' of 'Independent Service Providers' to do an adequate standard of work ... ( some of them already meaningfully 'guarantee' their work ) ... some sort of 'branding or accreditation' more than 'general reputation' of Independents could and should evolve.

Legal aspects of Contracting Agreements and 'Small-Type' may well become a lot more daunting, esp for the consumer ... maybe intermediate 'service broker advisors' will evolve ? ... maybe the Consumer Protection Laws and Watchdog bodies will become a LOT more relevant ?

[AndreasR]

This ruling could lead to a lot less dealer showrooms as they will lose vehicle maintenance which is one of their cash cows that keep them going.

As to vehicle prices reducing, dream on. The dealers will just say that they need to increase their margins on sales of new cars to compensate for loss of maintenance work.

[Mad Manny]

The MyToyota App lets you see how much your next service will cost, to the cent.
These Indie's will have to come in at no more...

[AndreasR]

Manny, you are talking about a normal routine service. No one makes money on those. its big repairs where the dealers make their money.

[Mad Manny]

Andreas, I agree, the routine stuff covers the basics, its the big ticket items that bring in the real money.
But you need the guys to come in for the routine stuff to get the big work.

My last service was only R1800 odd.
But then they quoted on brakes, a turbo repair & some stabilizer bar.
Had I said 'Proceed' they have scored another R42k out of me...

[Mad Manny]

I run a small fleet of mainly Isuzu's.
I use my own Mechanic for most work.

When I go in to Isuzu they get most parts, that are not on the shelf, within 24 hours.
There is a whole central warehouse & supply chain behind it.

Now, from 21 July next year, the Isuzu central warehouse will be compelled to sell to all,
But the small guys wont (@ least initially) be doing the volumes for Isuziu to do express delivery.
The process will be slower.
So it'll be faster, at least for a while, to go buy off the dealer.

Also, an Isuzu dealer gets discounts from the central warehouse, I'm not sure if the act will force standardised pricing.

The more I thing about it, the less I think things will change...

[Mad Manny]

I'd like to get a big Indie, like Peter Street of Overland Worx's opinion on this.
Wait here... I'll go call him.

[BushWacker]

Another coverage:


https://www.news24.com/wheels/news/indu ... 20201216-2

[KurtG]

I'd like to get a big Indie, like Peter Street of Overland Worx's opinion on this.
Wait here... I'll go call him.

I did not know that Peter was of Indian descent. Interesting.


Sent from my iPhone using Tapatalk

[tgwinduna RIP]

The Right to Repair
This campaign has been going on for some time with the competition commission.
As far back as 2004 they tried to apply the Block Exemption agreement which is in place in the UK , the whole of Europe and the USA and New Zealand.
Only two countries in the world applied mandatory motor plan since the 90's and because of this they managed the motor manufacturers to block it.
Those two countries are Australia and South Africa. If I look at what it costs to extend your motor plan for two years is about R80k and that is for two services and breakages irrespective of mileage. 5 year motor plan is approx. 12.5% to 15% of the retail price and the manufacturer takes all. That is why by law if you right your car off under motor plan the manufacturer is compelled to refund you, very few people are aware of this.
What this means is you can now choose if you want a motor plan or not and irrespective you can take your car to a local Indy from day one and the manufacture has stand good for the repairs and service cost in case of motor plan, they are compelled to supply all parts at dealer prices and bulletins and maintenance aids. There are no ifs or buts it will be legislated into law.
The block exemption agreement overseas have also stipulated that the Indy does not have to use OEM parts because it is noted that a lot of after market parts are equal or better quality.
Still early days but I think it is going to affect a lot of dealerships and are going to have to downsize their real estate and follow the UK example.