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post #15 of (permalink) Old 16th May 2006
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Originally Posted by Horatio
Isn't that just the basis of capitalism though? Maximising profits by charging what you can reasonably expect to get away with? And forget that there is a theory of relativity between cost of production and price charged because you have a captive market trapped by the short-and-curlies???
The best we can expect is what we already have - i.e. that as long as you use a competent VAT registered mechanic, the manufacturer has to honour your warranty. You're now only really tied to the dealer network by a sense of not wanting to put that issue to the test, and the misguided belief that a dealer service stamp actually means something when you come to sell the car. You have the opportunity to vote with your feet, and if the dealers push the prices up too high, that's exactly what people will increasingly start to do. DEO GRATIAS

Aren't there one or two of the budget manufacturers already doing that? That's what I meant by "ALL".

But it'll never work in the mainstream UK market, which is still largely driven by company car sales. I had forgotten that car-fleet managers cannot add-up Put servicing on the list price, and you bump up the tax liability (which TAX are we talking about here?) for the vehicle. A manufacturer that tried this would lose out in sales to one offering a similar spec car for less money, but with 'pay as you go' servicing. (Only because fleeters have the clout to secure better rates than we can.) In fact, it would work better to discount the list price of the cars and charge more for servicing (Not for those who have to go to a mechanic for everything they need.), and I wouldn't be surprised if that's exactly what's happened.
Bad state of affairs, says I!!!
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