Singaporeans can now send their cars to independent workshops without voiding warranty – Malaysia next?

Singaporeans can now send their cars to independent workshops without voiding warranty – Malaysia next?

Our neighbours across the Causeway can now send their vehicles to independent service centres without voiding the warranty, as major car dealers in Singapore have agreed to remove restrictions on vehicle warranties and related documents, according to the Competition Commission of Singapore (CCS).

Following the conclusion of its study into the supplies of car parts in Singapore, the CCS said it was concerned about dealers requiring customers to have their vehicles serviced or repaired at the vehicles’ respective authorised centres in order to have their warranty remain unaffected.

“To address this, CCS has raised its concerns with the major car dealers and have worked with them to remove the warranty restrictions from their car warranties and related documents,” the commission said, adding that said dealers have agreed to make relevant changes to warranty terms by the CCS. All agreed changes to the warranty terms for existing and new warranties will be implemented by December 31.

Such restrictions deter vehicle owners from using independent workshops, and thus limit the latter’s ability to compete with the brands’ official franchise service centres. With the changes to restrictions put in place, car dealers will then be allowed to void warranties or claims only if the damage caused has been found to be caused by the work of independent workshops.

Singaporeans can now send their cars to independent workshops without voiding warranty – Malaysia next?

Information from car dealers in the city-state suggests that the proportion of customers who service their vehicles at authorised centres sees a considerable decline once the warranty expires. Authorised workshop patronage goes as high as 90% for the first few years of the vehicles’ lifespans, however this drops to around 40% for older cars, CCS said.

Market feedback also found that authorised centres charge up to two to three times the price of independent workshops for parts and labour, the competition commission added. “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,” CCS said.

The marques and distributors which CCS approached and obtained cooperation from include Alpine Motors Pte. Ltd. (Chevrolet), Borneo Motors (Singapore) Pte. Ltd. (Toyota and Lexus), Cycle & Carriage Industries Pte. Ltd. (Citroen, Kia, Mercedes Benz and Mitsubishi), Eurokars Group of Companies (Porsche, Mazda and MINI), Kah Motor Co. Sdn. Bhd. (Honda), Komoco Motors Pte. Ltd. (Hyundai), Motor Image Enterprises Pte. Ltd. (Subaru), Performance Motors Ltd. (BMW), and Tan Chong Motor Sales Pte. Ltd. (Nissan).

Meanwhile, CCS understands from Volkswagen Group Singapore Pte. Ltd. (Volkswagen) and Premium Automobiles Pte. Ltd. (Audi) that there are no such restrictions in the warranties. The brands distributed by the aforementioned dealers make up more than 90% of cars sold in Singapore last year, the competition commission said.

What do you think, dear readers? Should a similar arrangement be adopted in Malaysia? Will it work?

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • VW pulling out of SG market veli soon

    Like or Dislike: Thumb up 4 Thumb down 14
    • Yup. I’d stick to sending my Persona to Proton service ctr. Outside workshops not so reliable.

      Like or Dislike: Thumb up 26 Thumb down 16
    • kanenabu on Dec 13, 2017 at 8:01 am

      VW and Audi selling very well in Spore. Why should they pull out

      Like or Dislike: Thumb up 1 Thumb down 0
    • Frisk on Dec 13, 2017 at 8:07 am

      You didnt read ah. Its says, ‘there are no restrictions to their warranty’. Thats means even from before VW and Audi owners can send their cars to independent car workshops. No problem.

      Like or Dislike: Thumb up 4 Thumb down 0
  • hahahaha on Dec 12, 2017 at 2:26 pm

    This would never work here in Msia. Too many fake parts floating around in the market. Plus, big guys like Sime Darby and UMW will definitely complain.

    Like or Dislike: Thumb up 45 Thumb down 1
    • Agree to Disagree on Dec 12, 2017 at 3:10 pm

      True yet untrue my friend – even the service centers are unscruplous, where they do not replace wearables like oil and etc, when coupons or free service sessions are given.

      There have been many cases where “priority” customers obtain swapped parts from other vehicles that are sent for regular servicing to accomodate the urgency of parts.

      Like you said, the big, dirty boys won’t allow this to happen here – in Signapore it’s different as there’s a better judiciary and enforcement there but here, you and I know enough la haha!

      Like or Dislike: Thumb up 27 Thumb down 1
      • hahahaha on Dec 12, 2017 at 3:28 pm

        i know what you mean, the guys at FA VW tried to scam me by not changing my oil and not changing by cabin filter, but I checked and caught them. So i guess to be more precise, the big guys want a monopoly on the opportunity to scam, and not open up the scam market to outside independent shops. hahaha

        Like or Dislike: Thumb up 13 Thumb down 5
  • swooshman on Dec 12, 2017 at 2:30 pm

    I void warranty within the 1st service itself. It is true as what was written where authorised service centres charge double to triple the price of external workshops.

    Like or Dislike: Thumb up 8 Thumb down 1
  • longjaafar on Dec 12, 2017 at 2:56 pm

    The Malaysian authorities will “study” the matter and that may take a few years…

    Like or Dislike: Thumb up 19 Thumb down 2
    • Agree to Disagree on Dec 12, 2017 at 3:11 pm

      Few years? Bro, you’re too hopeful la.

      It will never happen in my opinion – few years perhaps only to reveal findings that it’s not suitable to be implemented la haha.

      Like or Dislike: Thumb up 14 Thumb down 0
  • Agree to Disagree on Dec 12, 2017 at 3:13 pm

    This would be a dream come true – in fact, many developed countries other than SG are usign a similar system.

    However, we aren’t a “developed” country – so that’s that.

    Like or Dislike: Thumb up 11 Thumb down 1
  • Jimmy on Dec 12, 2017 at 4:51 pm

    Literally a good move.

    Consumers/customers ought to be wise and discerning.

    I think we are not yet ready for this, do more harm than good, and more messy. Hold on.

    Like or Dislike: Thumb up 3 Thumb down 0
    • Samuel on Dec 12, 2017 at 8:59 pm

      We do not have to go as far as this. Just keep things simple by having the main franchisee do audit on their dealers receipts. Why should there be engine flush, additvies at 20,000km, too early engine transmission oil changed at still be 30,000km , spark plug changed even during 1st 10,000km visit. In USA engine oil change is prompt by a pop up display or engine alert. Oil change is typically from 7000 miles and up to 20?000 miles.

      Like or Dislike: Thumb up 1 Thumb down 1
  • Semi-Value (Member) on Dec 12, 2017 at 10:10 pm

    im all for authorised workshops…as long its free….

    Like or Dislike: Thumb up 1 Thumb down 0
  • Johanian82 on Dec 13, 2017 at 5:33 am

    Giving options to customers is a good thing.

    Anyone who feels otherwise has vested interest because no one is forcing them one way or the other. As it is now, most customers agonize at the long wait for a service appointment.
    Some customers may just want something simple done and prefer not to wait.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Kok Siong Lee on Dec 13, 2017 at 8:42 am

    Our government working to regulate the market and protect consumers’ interest??? That MIGHT be the greatest joke ever told…

    Like or Dislike: Thumb up 1 Thumb down 0
  • Ollie on Dec 13, 2017 at 3:56 pm

    Starts with the consumer. As stated in some of the comments, most car owners have no idea what a service is. Engine oil, filter is a RM250 10 minute job with parts and labour and fully synthetic premium oil. SC charges RM300 for semi-syn. Self-sourced original/OEM parts : Brake pads RM150, Wipers RM50, Sparks RM80 full set, ATF RM200+ premium fluid and change, Coolant RM100 – doesn’t need to be touched for 12-18 months! Air and cabin filters RM50 or less. So a ‘full’ service can be RM1,000, and not RM2,500 at a SC. Buy a Bluetooth OBD reader and diagnose codes yourself. Clean air intakes, maintain tyre pressure, balance and align tires, and your car will be all good after even 200,000 km.

    But c’mon, how many owners actually want to know this stuff? 10%, max.. 90% of people buy a new car, change it every 3-4 years, and send it to the SC. Cows just prefer to be in a herd…..

    Like or Dislike: Thumb up 3 Thumb down 1
  • shafz on Dec 15, 2017 at 11:08 am

    Singaporeans can buy luxury cars but cheapskate when comes to servicing ?

    Like or Dislike: Thumb up 0 Thumb down 1
 

Add a comment

required

required