Peugeot "warranty"

Flyboy152

JasonLVC wrote: »

There is nothing in the EU regulations that stipulate the service must be performed by a VAT registered dealership.

(EU regulation Motor Vehicle Block Exemption Regulation MVBER(EC) 1400/2002 and also MVBER(EU) 461/2010)

I guess the VAT rule probably comes from the manufacturer wanting to stop people servicing their own cars at home and then still being able to claim for any warranty work - especially where a component fails as a result of the DIY'er bodging the servicing job - hence a VAT registered business is legitimate rather than an invoice you knock up on your home computer to make it look like you've had a 'proper' service done.

On saying that, there are many legitimate non-VAT registered garages who'll do just as good (if not better) job than a dealer.

Suggest you go back to Peugeot and ask them where exactly it states in the legislation about the need for a VAT registered garage. if they cannot find that clause then they've no reason to reject your claim and maybe take a photo of the garage to show Peugeot that it does exist.

This has nothing to do with the legislation not stating that it must be serviced by a VAT registered repairer, the point is that the regulations do not prevent a manufacturer from insisting on it.

Flyboy152

jase1 wrote: »

Hmmm. How difficult would it be to persuade a garage to "by accident" back-date a service if you took the car in now?

I'd say pretty damned impossible. Especially if the dealer values his position as a franchisee and wants to maintain his liberty. When I last looked, fraud is still a criminal offence.

JasonLVC

Flyboy152 wrote: »

This has nothing to do with the legislation not stating that it must be serviced by a VAT registered repairer, the point is that the regulations do not prevent a manufacturer from insisting on it.

European Law has "direct effect" over domestic law and should be interpreted strictly. The original law was introduced to create competition and to prevent manufacturers from controlling the market place.

The law also prevents manufacturers from refusing to sell OEM parts to non-franchised dealers (becuase that's what the manufacturers tried to do, starve the independant garage of genuine parts thus rendering warranties useless, forcing customers to use dealership instead)

That Peugeot imposes a VAT registered condition into their warranties doesn't mean Peugeot are right, it means they've invented their own conditions that don't appear in the EU law and to me, is against the spirit of the law which was designed to open up the market place, not restrict it.

motorguy

bigjl wrote: »

I would never run a garage without being VAT registered, it is like free money, you get your VAT back in payment for collecting VAT for the Revenue.

The massive downside being that you either make yourself 20% more expensive than someones whos not VAT registered OR you lose that amount of your hourly rate to give to the VAT man

BUT i take your point on everything else.

Flyboy152

JasonLVC wrote: »

European Law has "direct effect" over domestic law and should be interpreted strictly. The original law was introduced to create competition and to prevent manufacturers from controlling the market place.

The law also prevents manufacturers from refusing to sell OEM parts to non-franchised dealers (becuase that's what the manufacturers tried to do, starve the independant garage of genuine parts thus rendering warranties useless, forcing customers to use dealership instead)

That Peugeot imposes a VAT registered condition into their warranties doesn't mean Peugeot are right, it means they've invented their own conditions that don't appear in the EU law and to me, is against the spirit of the law which was designed to open up the market place, not restrict it.

I will say it again, there is nothing in the regulations which prevents a warranty provider (manufacturer or stand alone) from insisting that vehicles are serviced by VAT registered repairers.

bigjl

pgilc1 wrote: »

The massive downside being that you either make yourself 20% more expensive than someones whos not VAT registered OR you lose that amount of your hourly rate to give to the VAT man

BUT i take your point on everything else.

I think it may depend what area you live in to some extent, no garage even small ones are not VAT registered near me, at least not any that I have seen, I don't take my car to back street merchants anymore, I would rather save money by doing my own servicing, but I have one or two trusted garages where I will take big jobs to.


If cost is a consideration most will do a cash deal to avoid losing custom, but in my experience when the garage is not VAT registered they are only slightly cheaper than a VAT registered one nearby, they all seem to charge the going rate for the area. The only thing that changes is the profit margin, as a lot of non VAT registered garages tend not to declare all taking to the revenue. Any garage that does this then you must consider if you trust them to actually do the job properly.

This may just be how things work in Greater London and Essex near the M25 however

JasonLVC

Looking at, what I presume is the current warranty documentation off the UK Peugeot website, I cannot see any mention of the word VAT :-

http://www.peugeot.co.uk/resources/content/0.0_Common_images/PDFs/3_7_warranty_terms_and_conditions_v2.pdf

It states very clearly on Page 8, "you must.....have the vehicle maintained and serviced in strict conformity with Peugeot's instructions and is able to provide proof of this (maintenance records, invoices, etc)".

No mention of the word VAT, as per the OP's statements. Hmmm, I wonder why? That it may be common practice to insist on VAT registered garages, that does not make it law and even if that wasn't the case and Peugeot can add whatever conditions it likes, from a contract law perspective, not mentioning it in the T&C's of the warranty is a fundamental flaw in Peugeot's logic.

So, Peugeots own T&C's doesn't mention VAT, the EU legislation doesn't mention VAT and yet somehow Peugeot are insisting you must use a VAT registered garage?

Sounds more like a case of a typical insurance provider finding reasons not to pay out to me, nor does it surprise me that peugeot are trying to wriggle out

harveybobbles

Page 8 is refering to bodywork...?!

JasonLVC

harveybobbles wrote: »

Page 8 is refering to bodywork...?!

As it is a .pdf, it is page 8 of the .pdf, but if you're going by the actual page number in the booklet, then it is Page 6 (top left hand corner).