First and foremost, the consumer when purchasing a vehicle, is now armed with the choice of whether they want to include the service plan. Put another way, service plans can no longer be embedded into the metal. This means that other independent providers can also price service plans, or consumers can choose to not purchase a service plan and pay for their services as and when needed, making for a more competitive market.

Secondly, the Competition Commission has given guidance around the appointment of motor-body repairers by insurance companies and manufacturers, with the objective of “lowering barriers to entry and ensuring that a greater number of firms, especially firms owned and operated by historically disadvantaged individuals and small to medium enterprises have the opportunity to undertake service, maintenance and repair work of motor vehicles within the period covered by a motor vehicle’s warranty.” For insurance companies, this revolves around a fair appointment process and a fair allocation of work. Similar principles will be applied to the appointment of dealerships which criteria must be reasonable.