A sign of the changing times. The National Roads and Motorists Association ( NRMA ) has announced that from April it is discontinuing it's service of inspecting and preparing a report on member's vehicles. The take-up rate has fallen to just 1% of members and consequently NRMA expects the service to run at a one million dollar loss in 2006/7.
This was a well patronised service in the past. Many people called for an inspection prior to the end of a warranty period, and many more had an inspection before signing on the dotted line for a used car. In those days, warranties were pretty savage - Ford and GM offering just " twelve months or twelve thousand miles " of cover.
Today, two things have changed. Modern cars are better built than the clunkers of yesteryear - and five year warranties apply to many models. In relation to earnings, the asking price for new cars has sharply reduced. The entree of " El Cheapo " cars from Korea some years ago set a precedent and now most makers offer a well equipped basic model from about $ 15,000.
With lower prices and a better built product many people see less need for an NRMA inspection at warranty end or before buying a used vehicle.
For those who would continue to use this service salvation is at hand. The Motor Traders Association ( MTA ) has announced that from April they will be offering inspections - at a cheaper price than that charged by the NRMA.
This is probably a tactical step to snare NRMA members as MTA has ambitions to provide roadside breakdown services in competition to the market leading NRMA scheme.
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