Right 2 Choose Campaign
Scrappage Scheme Opportunities
Cars purchased during the UK’s scrappage scheme are coming up to the end of their warranty period and present additional business opportunities for independent garages.
That’s the view held by IAAF chief executive Brian Spratt after scanning the data contained within the latest Castrol Professional Car Servicing & Repair Trend Tracker report.
The report shows that the UK car servicing market value has risen from £8.43 billion in 2010 to £8.97bn in 2011 (excluding MoTs and VAT) with, importantly, further growth anticipated over the coming 12 months as cars fall out of warranty and service packages.
This growth in market value comes in spite of falling volumes across the sector, with 6.3 million fewer services and repairs (excluding MoTs) compared with a decade ago.
The number of services and mechanical repairs carried out declined by 12% from 53.5m in 2001 to 47.2m in 2011 but, in contrast, the average annual spend on SMR per car has risen from £242 in 2006 to £286 in 2011.
The report’s authors expect motorists who bought cars as a result of the scrappage incentive scheme to retain them, rather than re-entering the market to buy a new model. It is this which suggests to Brian Spratt that independent garages should be doing their utmost to attract these motorists out of the dealer servicing arena.
“A large number of motorists have become used to using the dealer for servicing their car whilst it’s covered by warranty, even though they didn’t need to. As these warranties expire it’s an ideal moment for independent garages to emphasise the benefits of economical, efficient and convenient servicing from the independent sector,” explained the IAAF chief.
“Of course dealers will also be doing their utmost to retain those customers, and we know this often by rubbishing the independents and spreading scare stories, so we’ve got to get a good message out to these motorists. As ever, the motorist has the right to choose; but the independent sector needs to help them make the right choice.”