Some car owners opt for independent workshops

Now that they do not have to worry about having their car warranties voided by authorised dealers, some motorists are opting to take their vehicles to independent workshops. These workshops say such customers are only starting to trickle in as many owners still stick to authorised service and repair centres.

Singapore's competition watchdog announced last December that it had worked with major car dealers to remove restrictions in existing and new warranties stipulating that all servicing and repairs be done only at their authorised workshops.

Doing otherwise could void the warranty. The change, which took effect this year, will ensure a more competitive environment and give car owners more choices, said the watchdog, now known as the Competition and Consumer Commission of Singapore.

Independent workshops interviewed by The Straits Times say business has seen a small boost, with the warranty curbs removed. Mr. Joey Lim, Managing Director of independent workshop Harmony Motor, said new car owners are coming in 'slow and steady, but not in droves'.

10 to 15 percent of the servicing work his workshop now does, such as oil changes, is on new cars still under warranty. Mr. Lim saw this as encouraging since he did not receive business from these motorists previously.

Asked why new car owners shun independent workshops, Mr. Richard Yuen, owner of AutoTechnica Automotive Services, said, "Some car owners have the mindset that going back to the agent is better, especially those of the older generation, and those who own higher end models don't mind paying extra."

Mr. Yuen said that since January, he has had about 100 new customers whose cars are still under warranty. While Mr. Lim said authorised dealers are best placed to service the brands they represent, he noted the 'only downside is price'.

The competition watchdog said last year that market feedback indicated authorised workshops can charge two to three times more than independent workshops for comparable parts and servicing.

However, cheap may not always be good. Mr. Alex Low, who owns MTE Garage, advises customers to do their research on the independent workshop they want to use. He told the story of the wrong transmission fluid being used by an errant workshop. The error cost the owner $4,000, which he paid to repair the transmission valve body.

Though warranty curbs have been lifted, authorised dealers can void warranties or reject claims if they can establish that the independent workshop had damaged or caused defects to the vehicle.

The Singapore Motor Traders Association also reminded car owners last year that they should keep proper records of servicing done at independent workshops, such as detailed invoices, which show proof of purchase of genuine parts.