Competition code should cut price of car repairs
The effect of greater competition and less expensive motor parts is likely to lead to lower repair costs
The days are numbered for absurdly pricey motor repairs and a lack of choice on where you can have your vehicle serviced for fear of losing the vehicle warranty or maintenance plan. Wynand van Vuuren, head of legal at King Price, says that in SA vehicle manufacturers have been manipulating the market by insisting that you use a limited list of accredited service providers which is chosen by the manufacturer. The manufacturers further specify that only original parts may be used for services or repairs, which has driven up the cost of these parts to the consumer. Van Vuuren says if you look at the original motor parts and compare them with after-market parts that are also SABS approved, the original parts are a "mind-boggling" 300%-400% more expensive. The Competition Commission has been investigating anticompetitive practices in the automotive industry and has published a final draft code of conduct for vehicle manufacturers and the insurance industry. When the code is implemented t...
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