Singapore drivers can soon go to independent workshops without voiding warranties

By CARSIFU | 12 December 2017


SINGAPORE: Singapore drivers will soon be able to service their cars at independent workshops without having to worry about voiding their warranties.

The Competition Commission of Singapore (CCS) said in a statement on Monday that it has worked with the major car dealers to remove the warranty restrictions from January 2018.

“All the major car dealers have agreed to make the relevant changes to the warranty terms identified by CCS. CCS expects all agreed changes to the warranty terms for existing warranties in force and new warranties to be retrospectively implemented by Dec 31, 2017.”

With the changes, car dealers may void car warranties or reject claims only if they have determined that the damage or defect to be claimed under the warranty is caused by the independent workshops.

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Independent workshops are often sought after by car owners as they sometimes offer far lower prices than the authorised workshops dictated by the dealers.

Current limitation deter car owners from using independent workshops, curbing the workshops' ability to compete effectively with authorised ones, said the watchdog.

This limitation may, in turn, allow authorised workshops to charge customers higher prices for servicing, repair and parts, it added.

The CCS said it has learnt that authorised workshops can charge two to three times as much as independent workshops for comparable parts and servicing.

For example, an oil filter change at the independent workshop could cost around S$100, but an authorised one will charge about S$200, said an industry source.

"The removal of the warranty restrictions will facilitate a more competitive market for car repairs and servicing, with more choices for car owners, and opportunities for existing and new independent workshops,” said CCS chief executive Toh Han Li said.

The Singapore Motor Workshop Association said the country has around 2,500 motor workshops, of which over 700 are its members.

The association’s spokesman, Joey Lim, told The Straits Times that independent workshops will now have to beef up their technical know-how to service newer car models, which are typically those still under warranty.

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