Deciding whether to use a franchise dealer or an independent garage for a car service is similar to choosing where to do your weekly shop - do you go to an upmarket store to ensure you get quality or opt for a budget brand to cut costs?
In this guide, we give you a full rundown of using a franchise dealer versus an independent garage so you can make the right choice for you.
Should I service my car at a franchise dealer?
There are some circumstances in which you may need to have your car serviced at a main dealer.
If the car is on a lease agreement, personal contract purchase (PCP) or some other form of finance (where you are not the legal owner of the vehicle) the terms and conditions may state that the car has to be serviced within the main dealer network so it’s important to check this paperwork before booking your car in.
Many people think they have to have their car serviced at a franchise dealer to preserve the car’s warranty. This isn’t the case. The UK Government has retained the EU Motor Vehicle Block Exemption Regulation (MVBER), which prevents car manufacturers from forcing their customers to use their approved dealerships to maintain the warranty.
This means you are free to use an independent garage but you must make sure that the garage services or repairs the vehicle in accordance with the manufacturer’s standards and only uses manufacturer-approved parts and fluids. This should be documented on an itemised invoice.
This evidence is important for any potential warranty claims and to protect 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?
If you are comparing hourly labour rates then, generally, yes it is much cheaper to take your car to an independent garage to have it serviced.
At a franchise dealer you might expect to pay an average labour rate of £99 compared with an average of £56 for an independent garage, according to a survey of 6,000 UK garages by automotive service and repair start-up motoreasy in 2017.
Why the price difference? Well, independent garages don’t have to cover the outlay of large premises or flashy showrooms. They also has access to spare parts from third-party suppliers, which will not usually be stocked by an approved dealer and will be more suitable for older vehicles that are out of warranty.
On the flip side, franchise dealers will say their labour rate is higher because they invest significantly in equipment and training. That investment can benefit you as the work may be carried out quicker.
NFDA's 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, according to Robinson.
You should also consider what additional services a franchised dealer may provide.
Cap HPI’s 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?
It's generally accepted that having a dealer-stamped service history will make a car easier to sell but what 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.”
But, to put that into perspective, not servicing the car according to its schedule or having a missing stamp would have a "much greater" impact on its value, he says.
When it comes to older cars, outside the warranty period, taking a car to main dealer is no longer expected.
But if you do use a main dealer, “it makes it rather more appealing when it comes to selling it”, Harris says.
Cap HPI's 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."
That doesn't mean you have to use a franchise dealer though 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?
All franchised dealers with a hybrid or pure electric vehicle in their range will be trained by the manufacturer to carry out all types of maintenance and repairs involving electric components, according to the NFDA's Sue Robinson.
Taking a hybrid or electric vehicle to a franchised dealer may also be beneficial for software updates.
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 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 the types of work required.
- Guarantee of genuine manufacturer-approved parts and fluids, to preserve the car’s warranty and protect its resale value.
- Additional benefits such as free car wash and vacuum, and a free health check.
- Dealer-stamped service history is more desirable on the used car market.
Potential drawbacks of using a main dealer
- Higher labour rate.
- Less personal service.
Benefits of using an independent garage
- Cheaper labour rate.
- May be more likely to repair rather than insist on replacing systems, which is cheaper.
- Often family-owned and run, you may deal directly with the owner.
Potential drawbacks of using an independent garage
- Work may take longer depending on equipment and technical capabilities.
- Car may miss out on important updates and software upgrades (which are usually applied by the dealer at the annual service).
- Dealer may be less inclined to provide free assistance with any issues that may arise outside the manufacturer warranty period.
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