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Is there any real reason to use a dealer for the service they seem to charge a arm and two legs compared to local garages

When the car is new the dealer may be better equipped to service the vehicle as the local garage may not have the equipment or training on the very latest technology. Also, with a new vehicle that is under warranty, the manufacturer may have reason to decline a warranty claim if servicing hasn't been carried out in accordance with their recommendation. Also, don't expect the manufacturer to extend any goodwill cover once the warranty has expired if the servicing isn't done by the dealer. However, it doesn't take long for equipment and knowledge to filter out into the non-franchise repair environment, so once the vehicle is a few years old, a trusted local mechanic will usually be the cheaper option.