Car servicing could get cheaper under a new plan being considered by government

Households could save hundreds of dollars on car servicing each year, and have more choice on which mechanic to visit, under a plan being considered by the government.

Exclusive: Households could save hundreds of dollars off the cost of servicing their car each year, and have more choice on which mechanic to visit, under a plan being considered by the government.

News Corp Australia has seen a confidential Treasury consultation paper, to be released on Tuesday that examines and calls for the establishment of a mandatory repairers code which would give independent, often cheaper, car repairers access to data and parts details that previously have only been accessible to “authorised” repairers.

This, in particular, will impact new cars with computer software

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There’s often a huge price difference between a dealer-attached repairer and an independent retailer.

Most car dealers do not share software information with repairers who are not “authorised” resulting in a monopoly where owners of new vehicles have to service and repair their vehicle at higher cost.

In some instances where cars have had to be towed to a separate “authorised” repairer just to simply have a PIN number for software input.

Assistant Minister for Treasury and Finance Zed Seselja said enacting a mandatory code as recommended by the consultation paper would support Australian small business and put downward pressure on the cost of vehicle repairs “ensuring the best deal for families when getting their car repaired”.

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Car servicing and repairs is a $20 billion industry in Australia.

“It is important Australians have a genuine choice about where they get their car repaired. Whether it’s at a dealership or at their local mechanic, they want to know that they’re getting their car serviced safely, efficiently, and at a competitive price,” Senator Seselja said.

“Industry representatives all agree that something needs to be done to ensure fair sharing of service and repair information, while protecting vehicle safety and security.”

Car servicing and repairs is a $20 billion industry, with more than 19 million car-owners in Australia.

The treasury consultation paper was part of an election commitment by the Coalition in 2016, with the Australian Competition and Consumer Commission producing a report on the issue.

Today’s paper recommends mandating the sharing of service and repair information with all repairers across the country to create a “level playing field” between large repairers and small independent retailers.

Having equal access to information for all, also increased safety of vehicle repairs according to the document.

“Safe vehicle service and repair requires sufficient information regarding the vehicle and the expertise to use that information appropriately,” the paper says.

North America and Europe already have information sharing for all repairers, placing Australia well behind the rest of the world.

Other countries already share data with all repairers.

Chief executive of the Australian Automotive Aftermarket Association — who represent independent repairers — said there was often hundreds of dollars difference between a dealer-attached repairer and an independent retailer.

He said with the increasing number of cars that had digitalisation, without a level playing field costs would skyrocket.

“When consumers get forced into dealership because information isn’t shared that’s when servicing goes through the roof,” Mr Charity said.

“The price of car servicing is going to soar unless we ensure healthy competition.”

However, Mr Charity said the consultation paper did not go far enough to ensure dealerships wouldn’t be able to wriggle out of sharing information due to “security reasons”.

“As far as we see it there is still too much power for car companies in this consultation paper.”

The Australian Automobile Association’s chief executive, Michael Bradley, said the consultation paper was a “step in the right direction” but was also an election pledge by the Coalition in 2016 so the pace of change was happening too slowly.

“Three years later the government is still considering a mandatory code with a consultation paper. That’s going in the right direction, but it’s not going at the right speed if we are serious about reducing the costs of repair works for motorists across Australia,” Mr Bradley said.

“The AAA notes that the consultation paper doesn’t adequately address all the issues to ensure motorists get the best deal; but we hope the consultation phase will identify those shortcomings”.

The government is calling for feedback on the consultation paper with submissions open until 5pm Monday 11 March.

The consultation paper is available attreasury.gov.au/consultation .

@pollietracker

FACTBOX

WHAT’S THE PROBLEM NOW

Currently car manufacturers do not have to share all their repair and parts information with independent repairers like Kmart Tyre and Auto, Ultratune and others. Particularly anything to do with software updates for vehicles are deemed intellectual property and so not shared outside of dealers deemed “authorised repairers” — these are usually attached to car dealerships.

WHAT THE CONSULTATION PAPER RECOMMENDS

Sharing all data and information that can assist in repairs and servicing of vehicles. The paper says this will make it better for consumers but also safer if things like silent recalls occur on a particular part.

WHAT WILL HAPPEN WITHOUT ANY CHANGE

As more new vehicles come onto the market that are digitised there will be less repairers who can service your vehicle with all the information they need to do it safely and correctly.

HOW IT IMPACTS YOU

If repairers attached to car dealerships retain a monopoly on servicing and repairs there will be less choice and competition in the market which could lead to higher prices for consumers.

@pollietracker

Originally published as Car servicing could get cheaper under a new plan being considered by government