Start your journey to vehicle ownership with the help of our Street Smart video series, brought to you by Absa Vehicle Finance. In the second instalment, Gordon Wood from Absa discusses how the new Aftermarket Guidelines, which were recently introduced in the motor industry, affect you as a vehicle owner.

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A car is one of the biggest purchases that a consumer will ever make in their lifetime. Depending on their lifestyle and vehicular requirements, they might well keep that vehicle for a lengthy period of time. The Aftermarket Guidelines, which came into effect on 1 July 2021, empower consumers by presenting them with more ways in which to service, repair and maintain their cars while those vehicles are still under manufacturer warranties (and their service/maintenance plans are still active).

We asked Gordon Wood – Absa’s Head of Dealer Relationships for KwaZulu-Natal & Mpumalanga – a few questions about this.

What do these Aftermarket Guidelines really mean for the customer?

Wood: The guidelines give customers more decision-making power when it comes to using independent service providers for car services, maintenance and vehicle repairs.

These guidelines have been welcomed in the industry by organisations such as the Automotive Business Council and the National Automobile Dealers Association (NADA).

What are the objectives of these guidelines?

Wood: They aim to make the vehicle aftersales market more inclusive and level the playing field for independent service providers. They introduce more transparency from Original Equipment Manufacturers (OEMs) in terms of information about value-added products that are now included in a new vehicle’s price.

Customers can get a view of what the products entail and whether these products suit their individual needs.

So what does this mean in practical terms?

Wood: The guidelines aim to, first of all, promote customer choice when it comes to independent service providers who service and repair (without the risk of voiding manufacturer warranties), it also promotes entry into the dealership market through revised manufacturer minimum requirements.

Thirdly, it promotes the use of independent service providers used by insurers for autobody repairs (also without the risk of voiding manufacturer warranties), lastly – but not least importantly– it promotes the inclusion and use of non-original parts in certain instances.

What are some of the ways in which a customer can be a truly responsible vehicle owner?

Wood: First of all, it’s important to have comprehensive insurance coverand ensure your car is sufficiently covered for the market value. It’s absolutely imperative that you understand that if “it sounds too good to be true, it is too good to be true”. There is just no way that one insurance company can cover an asset or vehicle like-for-like for a far lower premium than its competitor. My advice is to feel absolutely free to ask those questions when insuring your vehicle.

Secondly, service and maintain your vehicle regularly to avoid unnecessary damage. Perhaps consider purchasing a motor plan, because that is a good way to keep control of the additional costs of owning a vehicle. Thirdly, always use approved parts to avoid accidents, warranty claims and frequent repairs to your vehicle.

Then, with what we’ve just gone through as a country and the Covid-19 pandemic as it is, I strongly suggest that ownersconsider taking out credit life cover –this ensures that the outstanding balance on your loan will be paid off in cases such as loss of income, dreaded disease and death.

Lastly, I would strongly recommend that should your circumstances change, speak to your financier. The repossession of yourvehicle may not solve your debt problem.

Are there additional factors that customers need to be aware of?

Wood: Yes, it’s important to note that certain decisions may affect the vehicle and potentially the vehicle finance. For example, using parts that don’t meet OEM specifications may cause the customer to lose the manufacturer’s warranty associated with the vehicle. The parts used in servicing or repairs should never compromise the vehicle’s integrity. It’s critically important to remember that.

Where can customers find out more about these guidelines?

Wood: Customers can also get more information on the guidelines by contacting the Competition Commission or their financiers – I am sure that either would be more than willing to help; that way the customer can stay well informed and make the right decisions.

Related content:

Absa First-time Buyer Guide to Vehicle Finance

The New Normal, Podcast 3 – Time to revise your car insurance?

The New Normal, Podcast 2 – Car Dealerships of the Future

The New Normal, Podcast 1 – Changes in SA’s car-shopping patterns