Britain’s motor industry has launched a new code of practice to improve the standards of repair garages across the country, addressing complaints which cost consumers an estimated GBP4bn a year, according to the government. Meanwhile, labour costs are now as much as GBP200 an hour, an aftermarket warranty firm said.
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The scheme has been endorsed by major automakers and industry trade groups.
Vehicle owners now have the reassurance of a new scheme and a tough enforcement regime to ensure fair and honest treatment by garages though participation is voluntary, those behind the scheme said.
Responding to consumer concerns over pricing, quality of work and customer service, the new code now commits subscribing garages to honest and fair services, open and transparent pricing, completing work as agreed, invoices that match quoted prices, competent and conscientious staff and a straight-forward, swift complaint procedure.
Vehicle owners can search online for their nearest subscribing garage, a free consumer advice line and free conciliation and low cost, legally binding arbitration.

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By GlobalDataThe secretary of state [minister] for the Department of Business, Enterprise and Regulatory Reform, John Hutton said: “Most people have experienced first hand, or heard from neighbours and friends, horror stories about run-ins with rogue garages. For too long the bad practices of a minority have damaged honest businesses and ripped off consumers.
“I’m delighted that the industry has got together to tackle this problem and drive up standards. Regular inspections, tough penalties, a helpline for advice and a searchable guide will help people to get a good deal.”
Motor Codes director Chris Mason said: “This is one of the most important pieces of consumer protection in the last 30 years, giving motorists peace of mind when getting their car serviced or repaired.
“The code has been developed with the support of the service and repair sector, government, trade bodies and the consumer lobby in order to clean up the image of the garage trade and increase consumer confidence.
“The code will raise the bar when it comes to customer service but also offers advice, conciliation and arbitration, should a dispute arise involving a subscribing garage. Wherever possible we aim to resolve any issues before the vehicle leaves the repair outlet, but if not, the code provides an easily accessible and robust dispute resolution mechanism when required.”
The Motor Industry Code of Practice for Service and Repair has received the backing of trade bodies and consumer groups.
Alec Murray, chairman of the Retail Motor Industry (RMI) Federation, said: “There have been many schemes introduced over the years, some of which work quite well as business improvement tools, but none have had the teeth to address the issues of consumer protection.
“This code has been developed to do exactly that. We are all very proud that our efforts to date have been recognised by the Office of Fair Trading but this is literally just the first stage. At only GBP75 annual subscription fee, garages must ask themselves why they would not want to sign up to this affordable scheme.”
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: “Most garage businesses will meet the criteria needed to comply with the code and so we are confident that consumers will soon be seeing more and more of the Motor Codes logo appearing on service and repair outlets up and down the nation.
“An honest and reliable garage will probably be complying with the code requirements already and, with consumer awareness increasing, those that don’t subscribe will surely want to join and add it to their marketing toolkit.”
Ray Holloway, Director of the RMI’s Independent Garage Association (IGA) said: “Improved standards of service and consumer care are best achieved through industry self regulation so the [code] will be a great boon for the further development of our industry. The fact that the code is so affordable also makes it a ‘must-have’ business tool.”
Sue Robinson, director of the RMI’s National Franchised Dealers Association (NFDA) agreed: “The [code] promotes and safeguards the interests of consumers by helping them identify subscribing businesses and providing an easily accessible and robust dispute resolution mechanism, should it be necessary.
“This will benefit the reliable and professional businesses that make up the vast majority in the sector.”
Insurer Warranty Direct said on Monday that UK labour rates for mechanics nationwide have increased 11.3% since summer 2006 to GBP75.17 an hour on average. At the same time, prices at independent garages have risen the sharpest to narrow the gap with the traditionally more expensive franchised dealer networks.
The average franchise dealer is charging GBP94.70 an hour today compared to GBP87.91 in 2006 – up 7.7%. In comparison, the average rate for a mechanic at an independent garage has leaped by 14.9% over the same period – from GBP48.43 to GBP55.63.
Warranty Direct analysed labour rates at nearly 2,000 garages to highlight the dramatic price differences that occur across the country.
Greater London is the most expensive region at GBP94.26 an hour (average of franchised and independent), which falls to GBP68.70 for the City of Edinburgh, GBP78.81 across Merseyside and a similar figure of GBP78.01 for Cornwall.
The capital was also home to the most expensive dealer, charging GBP198.86 an hour.
Duncan McClure Fisher, managing director of Warranty Direct, warned that labour rates were likely to continue to rise in the current climate.