Do car repair prices at dealerships cost significantly more than local shops? At first thought, one might think, yes...
The following article, however, shows that unscrupulous tactics by local car repair centers frequently cause auto repair costs to exceed dealer prices.
Here's the article....
Car
Repair Prices: Who Charges More, Dealerships or Local Shops?
Many argue
that dealership prices are 4 to 6 times higher than local shops. This
is farfetched. That would mean that $100 at a local shop would be $400
to $600 at a dealership. Dealerships aren’t run by the
sharpest businessmen, but this kind of pricing discrepancy would put
dealers out of business, fast. The sources calculating such pricing
gaps are never quoted, so I am not sure from where such data comes, but
let’s look at what’s really going on.
First, 98 % of ALL service centers are
overcharging.
For supporting documentation of this claim, see excessive car repair prices. This includes dealerships,
local shops and franchises. Stating that dealerships charge 4 to 6
times higher unfairly singles out this portion of the industry.
We need
to watch out for every type of service facility. While it’s
always easier to focus on the big, faceless name of a dealership,
it’s unwise. Your local mechanic, who you pass in the grocery
store, is just as likely to rip you off.
Surprisingly,
in many respects, a dealership is often less expensive. To be clear, I am
not siding with dealerships. Again, no matter what type of facility one
services a vehicle, some type of price-gouging will occur. Having said
that, here are some common myths about dealership prices.
Myth One:
The parts
are more money.
This is not
true. Dealers, for the most part, stick to MSRP (manufacturer suggested
retail price) guidelines. Guidelines, as abused as they are, are better
than none. Local shops have no guidelines. They can charge whatever they want.
We've all
been taught that aftermarket parts are less expensive than factory/MSRP
parts—this is not true. A frequent
“case in point” is air filter prices. Below is a
sample from one of many actual invoices:
- Dealership/MSRP Price: $17.00 (factory fiber
filter)
- Local Shop/Aftermarket Price: $32.00
(aftermarket paper filter)
Tip…always
compare your aftermarket part price against MSRP,
you’ll be surprised just how much your local garage is
charging you for inferior parts.
Click Here to
discover the complete story of repair scams and tactics!
Myth 2:
The labor
“time” is higher.
Actually,
many dealers follow manufacturer recommendations and industry standard
multipliers. In other words, they’re not just shooting from
the hip. The labor time (i.e., how long it takes to
repair something—1, 2, 3 hours…etc.) may be lower
than the resulting times from the labor price-gouging tricks practiced
by your local garage.
This is not to say that dealers
don’t practice labor tricks—they’re the
masters! It is to say that they are more inclined to follow suggested guidelines.
There are a only a handful of local shops that stick to (or even know) the guidelines.
Myth 3:
Dealers
always rip people off.
In the
automotive service industry, every type of service center rips you off,
dealers are no exception.
To learn more about eliminating repair scams Click Here
-Theodore P.
Olson ©
http://www.repairtrust.com/
MLA Style Citation:
Olson, Theodore. "Car Repair Prices: Who Charges More, Dealerships or Local Shops?" RepairTrust. 23 December 2006. http://www.repairtrust.com/articles_charges_more.html
APA Style Citation:
Olson, Theodore. (2006, December 23). Car Repair Prices: Who Charges More, Dealerships or Local Shops?. RepairTrust. http://www.repairtrust.com/articles_charges_more.html
Chicago Style Citation:
Olson, Theodore. 2006 Car Repair Prices: Who Charges More, Dealerships or Local Shops?. RepairTrust (December, 23), http://www.repairtrust.com/articles_charges_more.html |
