The value of a service stamp = £1,500
A new study reveals that those drivers who put off having their car serviced to save cash could be costing themselves more money in the long run. Research(1) commissioned by Kwik Fit shows that a full service history on a car could increase its value by 26%. With the average used car selling for £5,500(2), the findings indicate that a fully stamped service book could be worth up to £1,500 - over £10 billion to the used car market annually.
In fact Kwik Fit has found that for a third (34%) of drivers, the stamp is literally priceless as they say they would not buy any car unless it had a full service history (FSH).
With 2010 seeing the lowest number of used cars sold in a decade(3) - 6.7 million cars - and buyers driving a hard bargain, having no service history will make selling a car at a decent price even harder.
Many motorists don't see any value in the smoked glass and comfy chairs of a main dealer. Over 10.5 million (32%) drivers say they place the same value on a service history from an independent garage as they do from a main franchised dealer.
The over 65s are the age-group most likely to insist on a FSH, as one in two (48%) wouldn't buy a car without it. For under-45s, this figure drops to 28% of motorists.
Londoners are prepared to pay the biggest premium for a car with a full servicing record - almost 40% more than one with no history. Scottish motorists are the second most discerning and are willing to pay a 28% premium for a FSH. Those in the North East, Wales and the West Midlands are the most relaxed about a documented history and would only pay 20% more for a car with a complete service book.
David White, customer services director at Kwik Fit, said: "It's accepted that a fully stamped service book will increase the re-sale value of a car but this research has been able to put a figure on it: £1,500 is a significant number and makes a big difference to the value of a car when an owner comes to sell. For a more expensive car 26% will equate to a very big number indeed. Motorists with one or two stamps missing should bear in mind that some services will still carry a premium over none at all, particularly if they've been carried out more recently.
"It's not just about the end value though, motorists who get their car serviced according to the manufacturer's recommendations will be rewarded with greater efficiency, better performance and lower on-going running costs.
"The research also highlights that the gap between the perceived benefit of a dealer over an independent servicing centre is closing. Drivers don't need to pay main dealer prices to maintain their car's peak value. They can come to Kwik Fit, and we'll put a stamp in their book which could be worth hundreds of pounds."
(1) Research carried out by ICM amongst a nationally representative sample of 2026 UK adults
(2) Average used car price for July - £5,633: http://www.british-car-auctions.co.uk/default.aspx?page=11946
News Source: Kwik Fit 25.9.11