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Posts Tagged ‘National Institute for Automotive Service Excellence’

Repair Charges Much Higher at New Car Dealerships

Costs on average are 34% more compared with independent shops. Significant regional variations exist.

by on Mar.17, 2009

Shop around so you'll be smiling too.

Shop around so you'll be smiling too.

As new car sales languish, dealers are increasing the promotion of repair and collision services to make up for the lost revenue. If you aren’t careful, you could end up paying too much for their services. A new study from the Automotive Aftermarket Industry Association says that consumers paid $11.7 billion too much last year for parts and service.

To arrive at this conclusion AAIA compared the parts and labor costs of 10 vehicle repair jobs for domestic and import brand vehicles in six cities, including Boston, Newark, Atlanta, St. Louis, Los Angeles and Seattle. The study revealed what AIAI called “dramatic differences” in the costs of parts and labor between domestic and import brands, and from city to city. For example, car owners in Los Angeles and Atlanta pay as much as 47% more at dealerships than independent repair shops for repairs; Boston and Seattle repairs at dealerships were only 20% higher.

“In response to repeated requests by congressional leaders studying the merits of the Motor Vehicle Owners’ Right to Repair legislation, AAIA commissioned a study to once and for all provide a comprehensive analysis that validated the contention that it costs consumers more to repair their vehicle at new car dealerships than at independent repair shops,” says Kathleen Schmatz, AAIA president and CEO. AAIA represents more than 100,000 repair shops, parts stores and distributors. (more…)