|
New Car
warranties have servicing ties removed:
Date:
14th May 2004,
Report: 85/04
All major makes of new cars in the UK
will in the future be sold without servicing ties as part of
their warranties, following action by the
Office of Fair Trading.
The remaining manufacturers whose new car warranties
including servicing ties have now lifted their servicing
restrictions. Consumers will now be able to choose freely
where they have their new cars serviced.
The move comes after an
Office of Fair Trading
study into new car warranties found that the "dealer-based
extended warranties" offered by manufacturers included terms
requiring that the new cars are serviced at a garage
belonging to the manufacturer's franchised dealer network.
This was limiting consumers' ability to choose where to have
their car serviced.
John Vickers, OFT Chairman, said:
"The car industry's response to the OFT's
recommendations to remove servicing restrictions is good
news. Consumers should now benefit from increased choice and
competition between franchised and independent garages."
The lifting of the ties has avoided the
possibility of formal action by the
Office of Fair Trading
under the EC competition law.
|
