Chitchat Warranty restrictions on car servicing, repairs and parts to be lifted

[bobby]

SINGAPORE - Come next year, drivers will be able to fix their cars at a workshop of their choice and not worry too much about losing their warranty, the Competition Commission of Singapore (CCS) said in a statement on Monday (Dec 11).

Under current warranty restrictions, drivers can service or repair their cars only at authorised workshops. Fixing their cars at independent workshops will void their warranty.

The change, which will affect existing and new warranties, comes after the CCS concluded an inquiry into the supply of car parts.


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

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

The change will mean that car dealers can void warranties or reject claims only if they establish that independent workshops damaged or caused defects to the vehicle under warranty, the watchdog added.


Mr Toh Han Li, CCS' chief executive, said: "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."

 

[bobby]

The other issue they need to address is the vehicle insurance factor.

When you insure your car at "market value"...it includes the COE component. Hence, the premium payable is always very high.

Technically, the COE component of the car value should be taken out of the market value when considering the premium payable. COE is only a certificate and even if your car is written off, you will get a refund from the gahmen on the demise or loss of your car. So only insure the car for its replacement parts or the entire vehicle minus the COE.

Motorists in Singapore haven been paying for something that does not need to be insured and is guaranteed by the gahmen for its 10 years currency.