Car makers' secret codes pump up cost

NATIONAL auto clubs want laws to force makers to share information with companies other than their own dealers to stem rising car servicing costs.

Car and cash

NATIONAL auto clubs want makers to share vehicle information to stem rising car servicing costs.

The RAA SA and like clubs from all states have told the Federal Government car servicing costs have doubled over the past 10 years and the industry must be opened to competition.

They want laws changed to force car manufactures to sell vehicle specifications and complex computer codes needed to repair new cars. The practice is used overseas to allow fair competition in the servicing and repair market.

"Increasingly, the only way to work out what is wrong with a new car is the car `talking' to a computer to diagnose it," RAA technical manager Mark Borlace told The Advertiser.

"The only people with access to those computers are the dealers.

"We're not saying they should make the information available for nothing, but Australian motorists should have the right to choose where they have their vehicle serviced, maintained and repaired."

The automobile clubs have succeeded in winning a review by the Federal Treasury's Commonwealth Consumer Affairs Advisory Council which is considering law changes.

Executive director of the Motor Trade Association John Chapman, said the information sought should not be available for free. If sold to independent repairers, it would be very costly.

"It would be a struggle for any independent provider to maintain that investment," Mr Chapman said.

"With the cost passed on, there may not be an economic benefit to the consumer."

Mr Borlace said the refusal to share repair information had also led to poor quality repairs.

Some motorists, particularly owners of small-volume European makes, were driving faulty vehicles until they could take them to distant dealerships for servicing.

Some country owners could only have their overseas-made cars repaired in Adelaide.

Royal Automobile Club of Victoria figures show the average cost of servicing a car has doubled since 2001.

There have been CPI increases of 35 per cent and wage increases of 51 per cent over the same period. 

Figures from the Deloitte Motoring Services Australian Industry Overview 2011 show profit margins for servicing and repairing vehicles are up to five times more than the profit margin from the sale of new cars.