Petrol prices have got us in a slump: But here comes the Competition Commission, with their proposals to shake up how car services work.
It’s fair to say 2018 has been one giant speed-bump for South Africa’s motorists. We’ve had seven consecutive fuel price rises and a VAT increase literally no-one asked for. But the tide could soon be turning when it comes to getting car services.
As MyBroadband report via City Press, new proposals from the Competition Commission seek to loosen the grip car manufacturers have over their customers. Thanks to their plans, taking your motor for its next bit of maintenance could be much easier on your bank balance.
Why car services in South Africa could get cheaper:
You’ll be allowed to service your car anywhere
Whenever someone buys a car from a dealership, it usually comes with that one caveat: More often than not, the company you buy from will demand that you undertake all car services with them. If you go elsewhere – like a nearby garage or a local engineer – it will void your warranty.
However, the Competition Commission wants to put a stop to that. Their job is to make sure that markets are competitive across all industries and the stranglehold these bigger corporations have over smaller outfits does not fall in line with their rulebook.
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Car parts will, therefore, be cheaper to buy
Equipment and accessories still have to be approved by vehicle manufacturers. This allows them to control the pricing of car servicing and gives them a monopoly on repairs, thanks to the warranty clause. With this removed, it’s likely that dealerships won’t be able to dictate costs of car parts in the same way.
This means that all businesses – on any level of the playing field – can start charging fairer prices, rather than attempting to play catch up with the big-wigs.
Cheaper services, parts should lead to cheaper insurance deals
How’s that for a cherry on a cake? The Commission also forecast that these proposals will make the general upkeep of a vehicle cheaper. Of course, with people paying less for their cars to be repaired, insurance companies will have to reflect this change with their own premiums.
Now, let’s all work towards getting every person on the Competition Committee a Bell’s, shall we?
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