A fair go for the mechanic down the road

When a warning light comes on in a modern car, it might be easy to fix the fault that has made the light go on, but turning the light off is another matter.

This is a point made by Labour’s consumer affairs spokesperson, Arena Williams, when announcing her party’s 2026 right to repair policy at Midas Manukau on October 5.

Most vehicle owners would agree. “Your car belongs to you,” she said. “You should be able to choose who fixes it.” But while independent mechanics may be able to repair the problem, they can’t clear the dashboard warning without manufacturer software. The driver is forced to go back to a dealer and pay more than $150 for the privilege.

Labour aims to fix the constraints faced by independent mechanics and therefore customers; car manufacturers would be obliged to give independent mechanics the manuals, software, tools and information needed to fix cars.

The problem

This would be good news for both vehicle owners and mechanics. The Choice of Repairer Industry Leaders Group says 80 percent of independent repairers it surveyed in 2023 turned vehicles away because they could not get the information, tools or data. The New Zealand Institute of Economic Research found servicing and repair costs rose 44 percent between April 2014 and March 2025, well ahead of general inflation.

Constraints of repair matter most where choice is thin. In a small regional town, the independent mechanic may be the only option. Even in cities, such as Dunedin, independent mechanics are required for Tesla owners as the nearest Tesla-authorised repairer is in Christchurch.

Many drivers do not know they already have a choice. A Midas NZ survey in August found 60 percent of people who bought through a dealer believed using another mechanic would void their warranty. Under the Consumer Guarantees Act and if servicing meets manufacturer requirements it does not. The law provides choice. Access to information makes it real.

No leap in the dark

Labour has not proposed something radical and untested. Australia introduced its Motor Vehicle Service and Repair Information Scheme on July 1, 2022. This was after a 2017 Australian Competition and Consumer Commission (ACCC) study found manufacturers could limit independent mechanics’ access to technical information and steer motorists to dealer networks.

The Australian scheme is practical. Anyone supplying service and repair information, including manufacturers, importers and affiliated dealers, must offer the same information to all repairers and at no more than fair market value. It covers passenger and light vehicles manufactured after 1 January 2002.

The Australian scheme does not hand over trade secrets or source code. Safety and security information, such as high-voltage systems and immobiliser codes, goes only to those assessed as fit and proper.

And the Scheme is enforced. In 2024 the ACCC issued Honda an infringement notice for nearly A$18,000 for offering diagnostic software only on a yearly subscription and not a cheaper daily or monthly option. Honda paid.

Has the Australian scheme worked?

Labour says the scheme has saved A$2.5 billion – for motorists, with independent mechanics averaging 25 percent cheaper than authorised dealer work. The Australian Treasury’s February 2026 review frames its headline figure differently: A$2.4 billion increase in repairer turnover, with independent mechanics more productive and profitable.

Research commissioned by the Australian Automotive Aftermarket Association shows that vehicles being turned away by independent mechanics fell by 40 percent following the introduction of the Australian scheme. Whatever numbers are cited, the direction is clear: the scheme had led to more work for local mechanics, more choice for drivers.

Not a left-right issue

The right to repair for vehicles issue doesn’t belong to any single party. In August 2025, National’s Dan Bidois lodged his member’s bill, the Commerce (Motor Vehicle Information Scheme) Amendment Bill. It would have created a market for repair information to flow from manufacturers to repair businesses, so vehicles are fixed quicker and cheaper. It was never drawn from the biscuit tin.

New Zealand would need a scheme adviser

One often-overlooked feature of Australia’s Motor Vehicle Service and Repair Information Scheme is the role of the scheme adviser, the Automotive Service and Repair Authority.

The Scheme Adviser, made up of four industry stakeholder groups, runs the Australian scheme day to day. It’s the first point of contact for repairers, collects the manufacturers’ offers, mediates disputes and produces annual reports. While the ACCC ultimately enforces the scheme, with penalties reaching A$10 million for serious breaches, it’s unlikely the Australian scheme would be as effective in the absence of a scheme adviser.

In other words, New Zealand would need a scheme adviser to enact a similar scheme. A legal right means little if a mechanic in Gore has nobody to ring when a manufacturer refuses to hand over information it is legally required to. A scheme adviser with industry credibility and the ability to talk with manufacturers, backed by a Commerce Commission with real penalties, makes a legislative promise a reality.

A fair go for the mechanic down the road

Right to repair for cars is a modest reform. It does not set prices, but it removes an artificial barrier and lets competition work. Labour has put it on the table, and a National MP has already drafted a bill. Whoever forms the next government should look to Australia’s scheme as there is every reason to believe it will be effective in New Zealand.