Proof: franchised dealers are dearer
- £170m saved since warranty clauses cut
- Drivers save more by using independent garages
- Franchised dealers £80 more expensive
Up to £170 million has been saved in servicing costs since the Office of Fair Trading took action against uncompetitive new car warranty clauses two years ago.
In December 2003, the OFT told manufacturers they had to remove clauses that insisted servicing had to be done at franchised garages for warranties to remain valid.
On average, the OFT found it was £80 more expensive to use a franchised garage than an independent workshop. It also said there was no discernable difference in the quality of work offered.
The OFT launched an information campaign after the last of the clauses were removed from warranties, and estimates that private motorists have saved £30 by choosing independent garages over the last two years. It reckons fleet operators have saved between £90 and £140 million.
However, the OFT says its campaign should probably have run for longer. It estimates that many new car owners still believe they have to service their car at franchised garages to protect their warranties and are paying between £40 and £90 million a year for the privilege.
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