The what, what??
On the 1st of July 2021, The Competition Commission of South Africa published new guidelines relating to the motoring industry called the “Right to Repair” guidelines, and these represent some pretty big changes to the way new cars are sold and maintained in South Africa. These new rules may threaten the profitability of franchised dealerships, but Right to Repair South Africa (R2RSA) says that consumers should have the right to choose where they have their cars serviced.
How does it work?
Let’s introduce you to Piet Pompies.
Piet would like to purchase a new Toyota Hilux bakkie. He goes to a Toyota dealership and starts scouting. He falls head-over-heels in love with a rugged double cab 😍 He decides to purchase the vehicle by means of a finance deal.
Because the Right to Repair guidelines are now in place, the salesperson at the dealership is obligated to separately disclose the price of the vehicle, plus the cost of the service plan. In the past, these two prices would have been presented as a package deal and poor Piet wouldn’t have known what the service plan would have cost him.
Piet also wouldn’t have had a choice. He would HAVE to service the vehicle within this specific dealership’s network. If he serviced it anywhere else, the bakkie’s manufacturing warranty could be voided 😡
But now, Piet has the option of financing his dream car WITHOUT a service plan. He is free to service his car with whomever he likes, meaning that he can shop around for a better price .🎉
This is all wonderful, but Piet must also be careful. He needs to familiarise himself with the vehicle’s service schedule, and know exactly which parts and systems are covered by the manufacturer warranty and which aren’t.
Our Advice
Our advice to Piet is to make sure he ONLY takes his car to a MIWA (Motor Industry Workshop Association of South Africa)-accredited service centre. More information can be found here: www.miwa.org.za
We were honoured to have interview the CEO of Right to Repair South Africa – Kate Elliot. She and her Not-For-Profit organisation has been advo-Kate-ing for the freedom of repair choice for vehicle owners over the last couple of years.
Kate is a seasoned expert on civil, commercial, competition, franchise and labour law.
You can check out the interview here to find out how these guidelines affect you, as a car owner.
Stay safe and healthy, folks.
Jono
