Fleet News

Block Exemption rules could boost residuals

MOTOR manufacturers can boost the residual values of their cars by supplying technical information to independent garages. This will increase competition for the repair of older cars, thereby bringing cheaper service and maintenance, according to the Independent Garage Association.

It believes used car buyers are very conscious of the running costs of the vehicles they purchase, and as a result will pay more for cars with a low ownership profile. European Law has dictated through the Block Exemption regulations that manufacturers must supply technical information to independent garages, but only Ford and Vauxhall have so far agreed to comply with the directive.

Hugh Roberts, director of the IGA, said: 'Vehicle manufacturers should realise there are considerable aftermarket advantages for them in supplying this data to responsible organisations involved in the independent service garage sector. It will also help the residual value of those vehicles because the customer has a wide choice of service outlets and repairers who are competitive and who offer good value for money prices.'

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