Deciding between a franchise dealer and an independent garage for your car service is akin to choosing where to do your weekly shop. Do you go to an upmarket store to ensure quality or opt for a budget brand to cut costs?
This guide gives you a comprehensive comparison between a franchise dealer and an independent garage to help you make an informed decision that best suits your needs.
Should I service my car at a franchise dealer?
In certain circumstances, servicing your car at a main dealer could well be your best oprion.
- Lease or finance agreements: If your car is under a lease, personal contract purchase (PCP), or another finance arrangement where you're not the legal owner, the terms may require you to service it at a main dealer. Always check your lease or finance paperwork before booking a service.
- Warranty considerations: Contrary to popular belief, you don't have to service your car at a franchised dealer to maintain its warranty. The UK has retained the EU Motor Vehicle Block Exemption Regulation (MVBER), which stops manufacturers from mandating the use of their dealerships for warranty preservation. However, if you choose an independent garage, you'll need to ensure they service the vehicle according to the manufacturer's standards and use manufacturer-approved parts and fluids, all documented with an itemised invoice. This documentation is crucial for potential warranty claims and maintaining the car's resale value.
Jeremy Yea, senior valuations editor at car-pricing business Cap HPI, says: “If the vehicle is still covered by the manufacturer warranty and there were to be any future warranty issues/claims, then the manufacturer will ask for proof to be provided on what serviceable parts were used (genuine or non-genuine), this may even include the grade of oil and some other fluids.
“If any parts or fluids do not comply with the car manufacturer’s parts policy, then the claim could be rejected, or you will only be able to claim a smaller percentage of the overall claim/cost. These factors may affect the resale value of a car.”
If you have your car serviced within the main dealer network you can be certain that they will always use genuine manufacturer-approved parts and fluids.
There are other benefits from using a main dealer, including specialist knowledge of specific brands and the types of work required, as well as their investments into technical equipment, according to Sue Robinson, chief executive of the National Franchised Dealer Association (NFDA), which represents franchised car and commercial vehicle dealers in the UK.
Is it cheaper to use an independent garage for servicing?
Generally, independent garages offer more affordable labour rates. Recent research (2023) from Car Dealer magazine indicates that independent garages have an average labour rate of £76 per hour., while franchised dealers rates can be significantly higher, with some areas averaging £141 per hour.
The price disparity arises because independent garages often have lower overheads and access to third-party parts suppliers, making them a cost-effective choice, especially for older, out-of-warranty vehicles. Conversely, franchised dealers invest heavily in equipment and training, which can lead to quicker and potentially higher-quality service.
NFDA's Sue Robinson says: “Independent garages can take longer to carry out a specific work since they tend to deal with a wider range of brands and may not always have the necessary repair equipment in place." That can mean that the total costs often work out the same, she says.
You should also consider what additional services a franchised dealer may provide. Cap HPI’s Jeremy Yea says: “A franchise dealer may offer more services as part of the cost, such as cleaning the vehicle before it is returned and potentially carrying out any essential or even non-essential recall work/software upgrades especially for battery electric vehicles, plug-in hybrid electric vehicles and hybrid vehicles. An independent may not be able to offer some of these services.”
Will a dealer service history increase the value of my car?
A dealer-stamped service history can boost a car's resale appeal, particularly for premium brands. For instance, maintaining a franchised dealer service history in the first few years can maximise your car's resale value and avoid potential warranty issues.
However, neglecting the manufacturer's service schedule or missing service stamps can significantly impact the price you'll get for your car when you come to sell it on. For older vehicles, especially those out of warranty, using a main dealer is less critical but can still make the car more appealing to prospective buyers.
Of course, the exact price you get depends on lots of factors such as mileage, condition, specification and the type of vehicle brand.
Simon Harris, head of valuations at UK Vehicle Data, says: “For premium badge models, it's probably safer to ensure it remains within the franchise dealer network during the first few years of ownership to maximise value on resale, to avoid any warranty sticking points should faults develop, or difficult questions over the value of the car at the end of a PCP term.
“Car owners might find the difference in resale value between a premium-badge vehicle that has been maintained within the franchised dealer network for its first three years and one that has been serviced by independent workshops, could run into thousands of pounds.”
Cap HPI's Jeremy Yea agrees: “Depending on the age of the vehicle, franchise dealers may offer more on a part-exchange valuation if they see a history conducted by an OEM-approved dealer/partner."
However, you don't have to use a franchise dealer and you should bear in mind that any uplift in value from using a franchised dealer may be outweighed by the saving you would make by using an independent garage for servicing.
Should I use a main dealer to service my electric car?
As EVs become more prevalent, servicing considerations have evolved. Franchised dealers typically have manufacturer-trained technicians for EV maintenance and access to necessary software updates.
However, independent garages are increasingly gaining expertise in EVs. Organisations like the Independent Garage Association (IGA) have expanded schemes to include EV repairs, ensuring that many independent garages are equipped to handle EV servicing.
When choosing a service provider for your EV, make sure they have the requisite knowledge and equipment to manage electric components and software.
Jeremy Yea, from Cap HPI, says that a franchised dealer will potentially carry out any “essential or even non-essential recall work/software upgrades especially for battery electric vehicles, plug-in hybrid electric vehicles and hybrid vehicles.”
But there is also a "great deal of expertise" about electric cars in the independent sector, according to Simon Harris.
"Car owners just need to do their homework and be satisfied that the workshop they choose has the required level of knowledge and familiarity with the work,” he says.
“Hybrids have been on the market now for more than 20 years, so there will be plenty of technicians in the independent network that will be familiar with the technology, and slowly this will be the case with electric cars. Perhaps it's easy to forget they have been around for more than 10 years.
“Many technicians at reputable independent garages will have gained experience at a franchise dealer workshop previously.”
Benefits and potential drawbacks of approved dealerships vs independent garages
Still unsure whether to use an independent garage or a main dealer? Here we list the main benefits and potential drawbacks to help you decide which is the best option for you.
Benefits of using a main dealer
- Specialist knowledge of specific brands and models
- Guarantee of genuine manufacturer-approved parts and fluids
- Additional services such as free health checks, software updates, and car washes
- Dealer-stamped service history can boost your car's resale value
Potential drawbacks of using a main dealer
- Higher labour rates
- Less personalised service
Benefits of using an independent garage
- Cheaper labour rates
- Potential for more personalised, customer-focused service
- Flexibility in sourcing parts, which can be beneficial for older vehicles
Potential drawbacks of using an independent garage
- May lack specialised equipment or training for certain models
- Possibility of longer service times due to broader brand coverage
- Risk of non-manufacturer-approved parts being used, which could affect warranty and resale value
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