R2C + R2R = Mc2 me

Right to Choose + Right to Repair = More Cash 2 Me

R2R

A Scientific breakthrough in Vehicle Repair costs: From 01 July 2021, South African motorists, are rightfully empowered to have their vehicles Serviced, Maintained, and Repaired at a workshop of their choice!

Changes to Vehicle Warranty-, Service-, Maintenance-, and Repair Plans

  • From 01 July 2021, the restrictions on the Service-, and Repair of vehicles under OEM Warranty, as well as the purchasing of Service plans-, and Original Vehicle Parts have been lifted.
  • The Commission may act against market players not following the guidelines.
  • Plans and Warranty agreements in effect prior to this date, remain unchanged. Changes only apply to new vehicles and plans purchased.

When Purchasing a Vehicle

  • Consumers now have the right to exercise choice regarding whether, to purchase maintenance-, or service plan. OEM's may not hinder a consumer’s choice when purchasing value-added products concurrently, and together with, a new vehicle from approved dealers.
  • OEM’s may no longer bundle service plans, motor plans, and other value-added products (VAP’s). This means that other independent providers can also price service plans, making for a more competitive market.
  • Transparency: Full disclosure of these separate products, must include:
  • The purchase price.
    • The average prices of each service interval and maintenance plans and other products (at the time of purchasing the vehicle)
    • All information regarding the maintenance and repair cost, including the average price of parts covered by this maintenance plan and service plan that commonly require replacement at specific kilometer intervals or when a vehicle attaining a specific age.
    • The terms and conditions required and/or permitted to maintain & repair the vehicle.

Freedom to Choose Service Providers and Parts during the vehicle’s warranty term

  • Consumers can select where their vehicles are serviced, maintained, and repaired, at competitive prices and in the workshop of their choice without the risk of voiding an existing warranty. Previously OEM’s could void a warranty if a vehicle were not serviced at the OEM-appointed dealership.
  • There is no risk to the consumer if an independent service provider is a registered business and possesses adequate insurance cover. ISP’s must disclose to consumers whether they have adequate commercial insurance cover.
  • The fitment of non-original parts or accessories can also not be penalized. As stipulated in the Consumer Protection Act, the liability for faulty or inferior components and/or faulty workmanship and consequential damage resulting from this is carried by the ISP. But, if manufacturers find that a warranty-related failure is due to inferior quality parts or incorrect service procedures, or faulty workmanship, they are within their rights to decline the warranty.
  • OEMs may not set minimum retail prices for spare parts.
  • Consumers may purchase spare parts and value-added products from any licensed provider of their choice, including independent/third-party providers.

Independent Service Providers (ISP’s) – access and obligations

  • ISP’s to get the same technical information, programming tools, and training as the OEM-approved workshops.
  • ISP’s get access to buy and install original spare parts. This will ensure that all the work carried out on a vehicle is traceable.
  • ISP’s get access to data-sharing (with parts coded to VIN numbers) and in-warranty servicing of the vehicle’s lifespan. OEMs are encouraged to make technical maintenance and repair information readily available, including information stored electronically or in the cloud.
  • ISP’s are obliged to record such in-warranty work undertaken in the customers’ vehicle service books or in the electronic service record of the vehicle. A caveat to this is that the ISP must be given access to previous service history.
  • ISP’s now carry the liability for faulty or inferior components and/or faulty workmanship and consequential damage resulting from this.
  • ISP’s should always service & repair in accordance with the manufacturer’s specifications, to avoid risk surrounding the loss of warranty.
  • ISP’s must inform customers about “warranty items” that they become liable to pay for.
  • ISP’s should use parts from suppliers that provide guarantees against consequential damage if their parts are found to be at fault.
  • ISPs should purchase parts from manufacturers that manufacture on behalf of the OEM as well as the independent aftermarket. These are “parts of matching quality”, not “pirate” parts of inferior quality. Good examples of these types of brands include TRW, Mahle, Bosch, NGK, GUD, Hella, Temot, Fram, Safeline, Monroe, Mann, and Hummel, amongst others.
  • Fluids used should conform to OEM specifications.

OEM & Parts Manufacturers obligations

  • ISP’s to get the same technical information, programming tools, and training as the OEM-approved workshops.
  • OEMs may not set minimum retail prices for spare parts and may not hinder a consumer’s choice.
  • OEM may impose reasonable conditions, including the requirement that the ISP must sign a confidentiality undertaking. Access to security-critical components is subject to the ISP meeting the OEM’s accreditation requirements and standards, as per the OEM’s global practice.
  • Parts manufacturers and suppliers (especially for filters) should confirm that their parts perform at the same or a higher standard than the original parts.

Insurance Company & other OEM obligations

  • Insurers are obligated to advise consumers in clear and explicit terms that they have a right to have the repairs on their vehicles undertaken by an Independent Service Provider (ISP) of their choice, irrespective of whether it is an insurance claim.
  • Guidance from the commission about the appointment of motor-body repairers by Insurers and OEM's has the objective of lowering barriers to entry and ensuring that a greater number of firms, especially firms owned and operated by HDI’s, and SME’s can undertake service, maintenance, and repair work of motor vehicles within the period covered by a motor vehicle’s warranty.
  • Equal Opportunity: This revolves around a fair appointment process and a fair allocation of work. Similar principles will be applied to the appointment of dealerships which criteria must be reasonable.

How you can Benefit?

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Posted on Aug 02, 2023 by Panel Beater Directory

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