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Motor Codes Ltd, the stand-alone body they have established to set up to run the Code on behalf of the industry, has satisfied the OFT that the Code promotes and safeguards consumer interests beyond the minimum requirements of consumer law.
Motor Codes will now carry out comprehensive monitoring procedures - including visits to garages and customer satisfaction surveys - to demonstrate that the Code is working effectively.
Only Codes that demonstrate this achieve Stage Two and are entitled to display the OFT Approved Code logo.
Last year problems with car servicing and repairs accounted for more than 23,000 complaints to Consumer Direct.
To address concerns about the sector and build consumer confidence, the Code will require that:
* when member garages provide a quote or estimate for work, they also offer a breakdown of costs including the charges for labour and parts in writing,
* where it becomes apparent that further work is required, the member garage must first get the permission of the customer before carrying out this additional work,
* member garages do not take upfront deposits,
* independent disciplinary procedures are in place with a range of sanctions including warnings and termination of membership to deal with garages who do not comply with the Code,
* a low-cost independent redress scheme is available to customers, and
* comprehensive monitoring procedures of member garages take place, including inspection visits by independent RAC engineers.
Charles Wallace, OFT Head of Consumer Codes, said, “Consumers need to know that when they take their car to a garage they are going to be treated in an honest and reliable manner. By using a garage that has an approved code, customers can be assured that they will receive a much higher standard of protection than required by law. We will continue to work closely with Motor Codes towards the next stage of OFT Code Approval.”
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Duncan Ward, BCA's UK Business Development Manager - Commercial Vehicles suggests it is time to for sellers to get back to the basics of remarketing as the market conditions get tougher.
Ward said, “There continues to be pressure in the used van market as average values fall across the board. The average value across all van sectors dropped to £3,255 in July, down from £3,499 in June, a fall of nearly £250 and the biggest monthly drop we have seen this year. Average values have fallen by more than £600 compared to those recorded in January 2008.
“It is by no means all bad news, however, and clean, straight panel vans still find a ready audience. The late-plate market is somewhat less buoyant than it was, now that many of the delivery problems on new vehicles have eased, but the best stock always sells well whatever the market conditions. Professional buyers all want retail quality vans that can be turned quickly for a profit.”
“With this continued pressure on prices for vans at auction, vendors could do worse than look at the basics of remarketing to ensure they are doing their best for their vehicles when it is time to sell. Simple things, done well can pay dividends in the current market”.
He added, "The remarketing rules for vans are really no different than they are for cars – proper preparation and good presentation are vital if LCVs are going to achieve the best possible price in the auction hall. Appraisals and valuations should be in line with current market conditions – there’s no point in pricing yourself out of the market before you even begin.
“It’s also important to know what buyers are looking for, what gets them bidding and what leaves them cold.”
“What is crystal-clear is that the buyers’ expectations are generally rising in all sectors. Specification is very important and is not lagging far behind what motorists expect in their own cars. Consequently, vans that have air-conditioning, full electric packs and metallic paint are much favoured over more basic models.”
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