Monday, July 27, 2009

Auto Repair Overcharge Scam - Don't Fall For It

You folks ought to know this, but in case you don't ...

If you have your automobile repaired in a shop, you will most likely find an unexplained charge added to the bill. It may be termed "Shop Fee", "Disposal Fee", or plain old "Misc. Charge".

This fee, whatever it is called, is nothing but an additional charge to pad the shop's profit margin.

Shops started adding these fees to their bills a decade or so ago. It started as a couple of bucks, then rose to 3, then 5, then 10, and now more. Shops are raising the amount because they have learned that 95% of their customers never bother looking at the bill, never ask about the bill, and/or never question the charges on the bill. In other words, if 95 out of 100 people pay it without asking questions, why not add it?

Branded dealerships have the highest fees. Chain stores are a little lower. Local shops are the lowest.

If you see something like this on your bill, question it. Demand to know exactly what it is for. If they say 'shop supplies', ask for an accounting of the supplies used on your specific repair job. If they say 'environmental fees', ask specifically what the fee is for. If they say 'miscellaneous charges', demand a line item list of those charges. If you hear 'those are just standard charges', ask to speak with the manager, and pin him down until you get an explanation. If you don't get a satisfactory answer (and you won't), refuse to pay it.

I know what these charges are - I have been told by friends and folks I know at dealerships that they are nothing but pure profit - added on to what you are already paying them for the parts and labor.

I have questioned these charges every time I have encountered them, and I have yet to pay them. The shop will take them off your bill if they are confronted - especially if you are in an area in front of other customers.

What triggered this? I had a car repaired at a local Toyota dealer today, and the 'Misc. Charges' line on the bill came to $52.00. The Service Advisor gave me all of the above explanations, and then admitted he didn't know what it was for. The Service Manager gave me the same line of BS, then gave up, said 'you caught us', and pulled the charge off the bill.

I don't mind paying a fair price for parts and labor, but this is just plain theft. Stand up for yourself, they are trying to take your money away from you!

3 comments:

Anonymous said...

Awesome! Thanks for the insider info. I've asked what these charges were, but fell for the environmental disposal, blah blah blah. Never again.

Kath said...

I don't know if I could do this, although I can be a tad -- just a tad -- cranky with sales people. But see, I am one of those people who takes the car to the dealership. Didn't used to. Do now.

I'm coming up on 25,000 miles, I don't know what I'll do this time.

67Cougar said...

You can go ahead and take it - I am not trying to talk anyone out of taking teir car in - just don't pay for crap like this. You might sepak with your service advisor when you get there, and tell them up front that you will not pay charges like this. If they say OK, then you've got them. If they say they can't do that, go to another dealer - chances are they'll change their mind when you start to get in your car to drive off!