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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 22977
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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Does a Car Dealership have to right to dictate who services

Customer Question

Does a Car Dealership have to right to dictate who services car in order to keep the Warranty Validated?
My local dealership want to charge more that 100% difference for servicing that a reputable serviceman using the original makers parts and following the detailed service sheet. I thought there was a law that means they cannot make us use these high priced dealers?
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.
The Consumer Guarantees Act gives you a better warranty about quality than the warranty given to you when you bought the car. They cannot contract out of the obligations under the act, which means that if there is a problem with the car which is covered by either the warranty they gave you, or under the act, they must fix the problem. So the warranty which they have given you is not really worth a great deal, except for the security of knowing that they have access to the parts and to the labour, from mechanics who are familiar with that model of car. But if you have another mechanic who could do the work much more cheaply, and the repairs are an issue covered by either the warranty or the act, then they are obliged to pay. The only difference is where you are getting a routine service. You would have to pay for this yourself in any event, subject to whatever deals have been offered as part of the sale.
Customer: replied 1 year ago.
OK thank you... part of the issue is this so called extended warranty. They say you must use one of 'their' dealers to make the warranty valid? Any thoughts..
Expert:  Chris The Lawyer replied 1 year ago.
If you don't use their dealer, it may make their warranty void, but you still have rights under the Consumer Guarantees Act. So if the car has a defect, then they are obliged to repair under the Act.