Do car dealership overcharge for repairs?

Question

I have a '99 Volkswagen Passat and the alternator went out. The service guy said it would be $499 for the alternator, $90/hour for 4 hours of labor , a 10% shop fee and 9%tax (of course can't cheat uncle sam). So $499 + $360 + $85.90+85.04=$1,029.94

The moral of the story is DON'T get a VW.

Answer 1

Most definitely!

Answer 2

A good dealership can't overcharge. If it did it would be out of business, The Auto companies keep an eye on dealer rates, and how they figure their labor. Another thing to remember is you are not going to sell cars to someone who feels that the service dept is cheating him. There are a lot of good independent shops out there, and a lot of bad ones. I have been working in dealerships since 1967 and at least 30% of my work is on vehicles that were somewhere else first. You have to be the judge of what is fair for labor. Find a good mechanic,( dealer or independent), it doesn't matter. If he treats you right, stay with him. Once he knows your vehicle and how you treat it, It will be easier for him to repair it, and cheaper for you in the long run. It is diagnosis that costs the most. The more a tech knows about a cars history, the better for you and him, or her. There are women in this business too. Find a good mechanic, and you won't feel cheated.

Answer 3

It depends on how you look at it.

First, they have a set hourly rate. If you view this as excessive and can find someone else to do the same quality of work for less, then in your mind they are overcharging and you should go somewhere else.

Second, for every repair there is a standard allowing a certain number of labor hours to be charged. Dealers will charge you this amount no matter how long it takes. Most independent or franchise shops will do the same, but not all. None of them can charge you over the standard even if it takes longer.

Third, is the shop honest. This really depends on managers at the shops and can vary at dealerships, franchises or independent garages.

Answer 4

They usually charge more, mostly because they pay everyone from the mechanic up for that job ... ie the mechanic makes 20 and hour, the forman makes 35 and hour the receptionist makes 10 and hour then you have to add in tax and business upkeep, and you end up with around 75-90 an hour ... are they the best ... usually not, are they all certified ... usually not ... only the foreman has to be certified, do they offer the best parts ... they use the parts that come from the manufacturer ... if its not a car that they made ... they use after market parts like everyone else will if you agree to it

Answer 5

AS a previous employee at two dealerships, I can honestly say yes.

The repairs are not fudged or unnecessary, they are just overpriced. Some may overcharge customers with an insulting 75, 100, 125 dollars per hour for repairs. Not even the most beautiful hookers in Las Vegas are worth $125 per hour.

The dealership has to contend with unions (ugh), utilities, minimum wage car porters who do most of the work, and the greed factor of the dealership's owner. They all share in the profit.

Never take your car to a dealership unless it is for warranty work. You can always, always, always do better at an independant repair shop.

Answer 6

I use dealership only for warranty repairs.

After that, I'd go elsewhere because the dealer charges you $90 an hour for labor and marks up the parts prices over 100%.

A headlight costs $300 at the dealer, but the local mechanic will charge you $200 because the wholesale price is less than $150.

Answer 7

The one here in this dinky
little town does. If they were
smart, they would have the
best mechanics in town and
charge the lowest prices.

Get people used to coming in
there and seeing what "wonderful"
people work at the car dealership.
Then when these people get ready
to buy a new car, guess where
they would come!

To their good friend and neighbor
who will also give them the best
price and as demonstrated -
excellent service if anything
goes wrong!

As it is in this town the guy
with the dealership here
thinks he is so far above
everybody else that he is
doing them a favor by
charging them more and
giving them less!

Therefore, most go "out of town" to buy.

Answer 8

Sometimes they do, you have to check with them sometimes because they'll replace things that don't really need to be replaced or charge too much for labor. Just find a reliable trusthworthy mechanic or dealer that you have heard has a good reputation and you should be fine. The price for repairs will vary from a dealer to just a little garage mechanic. Dealerships will pretty much always charge more but you're pretty much gauranteed to have the service done right the first time. A way to save some money is to buy aftermarket parts or buy OEM parts off of the internet. Dealers always charge a ridiculous amount of money for factory parts.

Answer 9

They don't think of it that way. They hire skilled well-trained mechanics who get a good wage. They post that hourly rate on the wall for you to look at before you sign anything about repairs. They charge the hours that are in the standard books for that repair. They only use genuine original factory parts. They have all those expensive diagnostic tools. They give a warranty on their work and are likely to still be there in business if you have a problem.

You could always go to a local place that hires mechanics who aren't as experienced and who work cheaper. If you are lucky you could get the repairs done cheaper. If you are unlucky you might need to take the car to another place to get it done right.

If you have a problem with a newish car you probably should go to the repair section of a dealer for that brand of car. For an older car or if you don't have a convenient dealer for your car go to the local place.

Answer 10

The only thing you don't really negotiate on at a car dealership is "repair cost".
They won't overcharge you. But they will definitely not going to give you a slack on the price.
Their profit is about 12 times more than Car sales department.

Answer 11

In general yes, they do overcharge. However, this is often due to them using original factory parts, and their higher labor charges.

Most routine repairs can use after-market parts which usually meet the original factory specifications and cost less.

On the other hand, the dealerships have expertise with your specific car brand and model that independent mechanics may not.

I usually go to independent mechanics for routine maintenance and repairs. My mechanic will tell me if he thinks I should go to the dealer instead.