Study: Auto Repairs Average 34% Higher at Dealers

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Vehicle repairs cost an average 34 percent more at new car dealerships than at independent repair shops, resulting in $11.7 billion in excess costs annually to consumers, according to a first-of-its-kind study just released by the Automotive Aftermarket Industry Association (AAIA).

The study reveals dramatic differences in the costs of parts and labor between domestic and import vehicle nameplates and from city to city. Consumers in Los Angeles pay as much as 46.8 percent more at dealerships than independent repair shops for repairs. The cost to consumers of specific repairs also varies widely. For example, the average cost for radiator repair for a foreign nameplate vehicle, including parts and labor, is $325.99 higher at a dealer than at an independent shop; and the cost to purchase and install front brake pads on a foreign nameplate vehicle is $138.92 more at a dealer than at an independent shop.

AAIA’s Vehicle Repair Cost Analysis: Comparing New Car Dealerships vs. Independents looks at the parts and labor costs of 10 vehicle repair jobs for domestic and foreign nameplate vehicles in six cities across the country, including Boston, Newark, Atlanta, St. Louis, Los Angeles and Seattle.

“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,” said Kathleen Schmatz, AAIA president and CEO.

Highlights of the study include:

* Vehicle repairs for parts and labor averaged 34.3 percent more at new car dealers than at independent repair shops.
* Foreign nameplate repairs performed at dealers averaged 36.8 percent more than at independent repair shops while repairs performed on domestic nameplates averaged 31.5 percent more at dealerships than at independent repair shops.
* Total 2008 cost difference for consumers having repair work performed at car dealers rather than independent repair shops for the 10 jobs equaled 11.7 billion.


Copies of the study are available free to AAIA members. The cost to non-AAIA members is $400. To obtain a copy, contact Member Services at (301) 654-6664 or e-mail [email protected] or visit the association online commerce center at www.aftermarket.org.


http://www.autocarepronews.com/default.aspx?type=art&id=91697&

I think this study reflects the cost difference between having a repair performed at a dealership and at a Pep Boys type outfit. Good independent shops, especially ones that specialize in your vehicle's make, are not significantly cheaper than the dealership.
 
I agree. You pay for quality, and often the good independent shops will not use anything but OE parts from a dealer, or the high-end name brand parts from places like NAPA.

I think you are correct... There sure is a difference in using BMW parts and proline/prostop parts from pep boys, for example.

There seem to be some decent aftermarket store brand parts... For example, it seems like autozone duralast gold brake pads are OK, carquest SPX filtran filters are good, etc. But the ultra-cheap stuff is scary to me.

Good evaluation, IMHO.
 
Originally Posted By: The Critic

I think this study reflects the cost difference between having a repair performed at a dealership and at a Pep Boys type outfit. Good independent shops, especially ones that specialize in your vehicle's make, are not much cheaper than the dealership.


Not if you actually find a good shop!

The last place I'd take a car to is a chain shop. You go in for an alternator, and you leave with the grocery bag: new battery, trans flush, blinker fluid top off, new muffler bearing etc.
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Maybe in Colorado... In NJ, a really good indy will charge 70-80/hr, a dealer will charge 90-110.

I recognize that $70 and $100/hr is 30% different... but its not pep boys.

I still think the Critic's analysis is still about right.
 
Originally Posted By: JHZR2
Maybe in Colorado... In NJ, a really good indy will charge 70-80/hr, a dealer will charge 90-110.

I recognize that $70 and $100/hr is 30% different... but its not pep boys.

I still think the Critic's analysis is still about right.

In Sacramento, Pep Boys charged $95 or $100/hr. I haven't checked the local independent shops there, but here in Santa Cruz, a good independent shop charges $117/hr.

As a comparison, the Acura dealership in Elk Grove, CA, charges $120/hr.
 
Originally Posted By: Drew99GT
blinker fluid top off, new muffler bearing etc.
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Drew, If you had kept you blinker fluid topped off and maintained your muffler bearings, you wouldn't have gotten hit with those charges
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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.
 
The tiny bit extra in labor rate ($30-$40 hr) is worth taking it in to the dealership.

Plus the dealer will give you a free loaner car for the day, so it sometimes pays just to take it to the dealer.
 
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I was at a friend's house the other day and saw a receipt from an indy shop down the street.

Regular oil change and new front brake pads on a 1997 Camry i4, total a hair under $200.

No brake rotor service. Only 'extra' I saw was an oil additive 111 for $8. What is that?

His labor rate was listed at $75 an hour, with one hour charged.

Reminded me why I do those services for myself.
 
Luckily for me I found a good mechanic who works for 75$/hr and I can buy my own parts online and bring them to him, he installs them. For major work I can go to the automobile wrecker, he will work for 35$/hr The wrecker did the whole:
clutch, tranny, engine replacement for 1200$ (cash) I bought the clutch on ebay, the tranny and engine I bought from the wrecker, and it is like I have a brand new car. :) good for another 15 years. The wrecker will also rebuild my old engine and tranny for me, in his spare time, 35$/hr.
 
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.

Well said.
 
Originally Posted By: GROUCHO MARX
I think that independent shops that market themselves as specialists in a particular brand of auto are looking for customers who expect to pay dealer rates with a more convenient location.


The local independent shops that I would consider specialize in Euro cars, but not in just one brand. They are not in more convenient locations, but possibly closer than a dealership. Their hourly labor rate are about $80 per hour, while the dealerships charge up to twice that sum. Original parts are marked up less at the independent shop.
 
Originally Posted By: scoobie
Luckily for me I found a good mechanic who works for 75$/hr and I can buy my own parts online and bring them to him, he installs them. For major work I can go to the automobile wrecker, he will work for 35$/hr The wrecker did the whole:
clutch, tranny, engine replacement for 1200$ (cash) I bought the clutch on ebay, the tranny and engine I bought from the wrecker, and it is like I have a brand new car. :) good for another 15 years. The wrecker will also rebuild my old engine and tranny for me, in his spare time, 35$/hr.



$75/hour is a little low for around here, the local independents charge around $80-$90/hr. One thing to keep in mind is that if you bring them a part and that part is defective, you will pay twice for him to do the job. Their mark up on the parts is also their insurance, used in the event they install a bad part. At least they'll come out with a few $$ toward the lost labor doing the job again.

I try to avoid shops at all costs. It bothers me cleaning oil and grease off steering wheels and carpeting, or paying a mechanic to guess at a high hourly rate what's wrong with the car. I found a guy that's pretty good, and reasonable, he's done a few cold weather repairs for me that had to be done. Last time he had one of my vehicles I found a nice scratch in the front fender, I was not a happy camper.
 
This begs the next question. With more and more dealerships going out of business, will there rates come down or go up?
 
Good question. Around here, I have 2 buddies that run shops, one a tire/repair shop, the other a local small shop. They both said business is way, way off. I thought people would be fixing up junk boxes because they can't afford to replace them. Seems they're driving them as is, or attempting repairs on their own, more now than ever before.

My bet is there are more unsafe vehicles around than ever before.
 
"My bet is there are more unsafe vehicles around than ever before." Agreed.
My better shops are busier, while my marginal shops are slower. I think that the average age of the cars on the road will have to increase for some time.
 
It's going to take sometime to tell. My initial feels were the shops would be doing well. Now I think the guy that lost his job or faces a layoff is now of the "if it aint broke don't fix it" mentality. Unless the brakes are screaming change me, they're not even being checked. JMO

I have more time on my hands than usual, so I've been picking my days, and getting a jump on maintenance items. Last week it was belts on the Aerostar, this week a fuel filter, and tire rotation. My logic is in bad times keep them running even better because I can't afford to replace them. Most people can't be bothered and don't know how to do their own repairs, and if they're short on money they'll do nothing at all.
 
Dealer labor in my neck of the woods( domestic )runs approx $90-$110 p/hr. Local quality repair shops get $60-$70 p/hr.

I tend to use the dealer for work just because they specialize in my vehicle and because I am more concerned about the local mechanic doing something wrong and risking my warranty. My dealer actually has a very good service department from the service writers to the mechanics.

I do not use OE parts however for the most part. Way too expensive. My dealer let's me bring my own parts. I do risk having to pay 2X's for labor though if the part fails.
 
People need to realize that folks working for $35/hr likely are evading all taxes and working under the table, illegally.

$35/hr comes to about $70k for a man-year of labor. If you condsider business taxes, business overhead, rental of space, truck, tools, computers, etc., it means that if someone is charging $35/hr, they may be grossing $35k/yr... I dont know of many who really desire to earn that little money for their hard work.

$100/hr is a reasonable "burdened" rate for many positions for many people earning between $50-100k/yr. That's just the way it goes. Much below that and something is wrong, or the shop is really hiring bottom of the barrel people.
 
I was not complaining about the rates around here. This is not California, $75 an hour is typical for good independent shops here.

Anyone know what that mystery oil additive "111" is? Maybe that is just his code for some well known lizard oil.
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