Franchise Dealer
Why you are now not compelled to use a main franchise dealer for servicing and warranty repairs.
The 'Block Exemption' Clause
You may have heard about Block Exemption or seen adverts mentioning it - here’s the truth...
The European carried out an investigation in the 1990s into Cartels, restrictive practices and anti-competition tactics by major manufacturers in many types of business. The law was subsequently changed to prevent these practices and open up the markets. The dear old motor industry was given a temporary reprieve from these new laws - the Block Exemption.
However, in October 2003, the Block Exemption was lifted (despite strenuous lobbying by the motor industry).
So, what does it mean?
The important issues are:
Your car can be serviced wherever you choose, as long as the manufacturers recommendations are followed and here’s the best bit - THE MANUFACTURER’S OR USED CAR WARRANTY CANNOT BE INVALIDATED.
If anybody (e.g. Dealer salesmen) suggest that a vehicle is devalued because it has not been dealer maintained, they could actually be breaking the law!! If you can provide certification(Senior BMW Tchnicians) of the work is of the manufacturer’s standard.
And there you have it... I suppose that you can see why the dealers are trying to keep this information secret.
This Clause Should also apply in the UAE!!!!!!!!!!!!!!!
Why you are now not compelled to use a main franchise dealer for servicing and warranty repairs.
The 'Block Exemption' Clause
You may have heard about Block Exemption or seen adverts mentioning it - here’s the truth...
The European carried out an investigation in the 1990s into Cartels, restrictive practices and anti-competition tactics by major manufacturers in many types of business. The law was subsequently changed to prevent these practices and open up the markets. The dear old motor industry was given a temporary reprieve from these new laws - the Block Exemption.
However, in October 2003, the Block Exemption was lifted (despite strenuous lobbying by the motor industry).
So, what does it mean?
The important issues are:
Your car can be serviced wherever you choose, as long as the manufacturers recommendations are followed and here’s the best bit - THE MANUFACTURER’S OR USED CAR WARRANTY CANNOT BE INVALIDATED.
If anybody (e.g. Dealer salesmen) suggest that a vehicle is devalued because it has not been dealer maintained, they could actually be breaking the law!! If you can provide certification(Senior BMW Tchnicians) of the work is of the manufacturer’s standard.
And there you have it... I suppose that you can see why the dealers are trying to keep this information secret.
This Clause Should also apply in the UAE!!!!!!!!!!!!!!!
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