code of conduct<\/a><\/strong> for the South African automotive industry.<\/p>\nThe proposed code is expected to empower car owners with the right to repair or service their vehicles at a provider of their choice, without voiding their warranties, he said.<\/p>\n
“As it stands, SA car owners are unique in the world because they are typically locked into using a vehicle manufacturer’s service centres, repair shops and parts in what are dubbed \u2018embedded\u2019 motor or service plans,” said Ho.<\/p>\n
“The new code of conduct will be voluntary, but participants will be monitored by organisations such as Right to Repair South Africa (R2RSA) and even the public at large.”<\/p>\n
Below he outlined five ways the code will benefit South African car owners.<\/p>\n
\nYou choose where to service or repair your vehicle<\/strong><\/p>\nWith the new code, you\u2019ll have the right to choose where you can service or repair your vehicle without voiding your warranty.<\/p>\n
The latest draft of the code states that ‘independent service providers can undertake in-warranty service and maintenance work and in-warranty motor-body repairs’.<\/p>\n
The code adds that this will widen ‘the pool of approved service providers who can undertake in-warranty service and maintenance work, in-warranty mechanical repairs, and in-warranty motor-body repairs.’<\/p>\n
“With there being an estimated 8,000 independent service workshops in SA, this will give you ample choice and more competitive pricing,” said Ho.<\/p>\n
“The code also stipulates that car owners will also be protected by the Consumer Protection Act if anything goes wrong.”<\/p>\n
\nMore choices when it comes to vehicle parts<\/strong><\/p>\n“With embedded motor or service plans, many vehicle manufacturers lock you into using their original parts, which typically are costed at a premium,” said Ho.<\/p>\n
“The vehicle manufacturers often say that this ensures your car will always have \u2018quality parts\u2019 specifically geared towards its type and brand.<\/p>\n
“But this argument doesn\u2019t hold water any more as there is a wide availability of high-quality, alternative parts in South Africa from the likes of Autoboys and other players in the market.”<\/p>\n
The Competition Commission has recognised this as a fact in the industry. Subsequently, its draft code has said that there will be ‘no unfair restrictions on the sale or distribution of original spare parts; allowing greater consumer choice in choosing suitable spare parts for repairs and maintenance of their motor vehicles’.<\/p>\n
\nPotentially lower insurance premiums<\/strong><\/p>\nIt\u2019s not just the end-consumer who will have more choice, but insurance companies as well, said Ho<\/p>\n
The Competition Commission says that ‘insurers may appoint and consumers may choose to appoint independent service providers to undertake non-structural work on motor vehicles during the warranty period’.<\/p>\n
The code goes on to say that a consumer\u2019s warranty won\u2019t be voided if an insurance company decides to go with an independent service provider for non-structural work on your car.<\/p>\n
“This should benefit insurers by giving them access to a wider pool of high-quality parts at lower cost, possibly resulting in lower premiums,” he said.<\/p>\n
“The code further encourages insurers to offer consumers a choice of approved repairers within their geographic area from which they can select to repair their motor vehicles.”<\/p>\n
\nMuch greater transparency<\/strong><\/p>\nAnother key stated objective of the new code is to ‘increase transparency and facilitate consumer choice in relation to the service, maintenance, mechanical and motor-body repairs of vehicles’.<\/p>\n
For example, the code states that ‘consumers must be advised, in clear and explicit terms, that they are not compelled to conduct motor-body repairs only at approved dealers or approved service providers’.<\/p>\n
“Because consumers will be more aware of the details of their choices, the spin-off will be that manufacturers and independent service providers will increasingly have to disclose information and pricing of their offerings to secure business from the car owner,” said Ho.<\/p>\n
\nTransformation and a more inclusive industry<\/strong><\/p>\nFinally, but most importantly, the code seeks to drive the transformation of the industry by levelling the playing field, said Ho.<\/p>\n
“It will do this by pushing for Original Equipment Manufacturers (OEMs) to promote the entry of historically disadvantaged individuals into an OEM\u2019s network of service and maintenance service providers.<\/p>\n
“For instance, OEMs will be expected to include black-owned providers in their networks through subsidisation of capital, facilities, tools, equipment and training required to meet their standards.<\/p>\n
“In turn, insurers will be tasked with broadening the allocation of repair work to black-owned and black-operated firms,” he said.<\/p>\n
\nRead:\u00a0A new \u2018code of conduct\u2019 is set to impact car insurance in SA \u2013 these are the changes on the cards<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"The days of vehicle manufacturers threatening to void your warranty if you use an independent service centre or repair shop will soon be a thing of the past.<\/p>\n","protected":false},"author":10,"featured_media":103213,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[26],"class_list":["post-280077","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/280077","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=280077"}],"version-history":[{"count":10,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/280077\/revisions"}],"predecessor-version":[{"id":280097,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/280077\/revisions\/280097"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/103213"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=280077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=280077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=280077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}