Study: Auto Repairs Average 34% Higher at Dealers

[NHHEMI]

Originally Posted By: rat

Dealership parts employees are also paid by commission on what they sell, in the case of my employer, we were paid on gross profit percentage. Many dealerships now have their own pricing matrix to increase profit by charging more than list price whenever possible. Its not right or honest in my opinion, but they have made it so thats the only way the employees can make any money.


Not all dealer parts employees are on commission. I worked dealer parts for a long time at straight hourly wages.

 

[rat]

You are correct, not all of them are on commission, but I would say the majority of them. My experience is in GM parts. Over the last 15 years, I have worked at 4 of them, and all have been the same pay type. Small base salary and a monthly bonus based on gross profit. If you want a raise, you are told to sell more parts.

 

[nthach]

Dealer techs are almost always flat-rate, and the fact that dealership service managers are in bed with the BG or MOC man and tack on snake oil onto their service menu for quick profits. We only take our cars in to the dealer for warranty work or when we get coupons and the local price difference isn't much.

 

[John_K]

Originally Posted By: XS650
Originally Posted By: Drew99GT
blinker fluid top off, new muffler bearing etc.

Drew, If you had kept you blinker fluid topped off and maintained your muffler bearings, you wouldn't have gotten hit with those charges

Dealers often aren't any more merciful about charging customers for nonsense work. And when a dealer hoses you it's at a higher hourly rate.


And don't forget to get those floor mats rotated!

John

 

[Spector]

You are correct about the service dept of some dealers being in bed with BG etc. Local Mitsubishi dealer dumps that stuff in every other oil change per their promotional pamphlets. Apparently customers do not know any different and just pay for it. And they still want to do the injection service every 15,000 miles which I have yet to see listed in any manufacturer's owners manual as ROUTINE SERVICE. Just a cash cow!

 

[nthach]

Originally Posted By: Spector
You are correct about the service dept of some dealers being in bed with BG etc. Local Mitsubishi dealer dumps that stuff in every other oil change per their promotional pamphlets. Apparently customers do not know any different and just pay for it. And they still want to do the injection service every 15,000 miles which I have yet to see listed in any manufacturer's owners manual as ROUTINE SERVICE. Just a cash cow!

The mechanics don't add the stuff in most of the time on new cars - they do it only on older cars.

I remember the Nissan dealer we bought our Quest from added Krex Graphite at each service. The local Toyota dealer uses Granitize. We use MOC at my dealership.