Monday, March 24, 2008

Auto Repair - Just How Much Fraud Is There?

I received an inquiry from a reporter recently with one simple question - how much fraud is there? I though that I would share our response here as well...
"You ask a great question. RepairTrust studies show that 98% of all car repair shops are charging excessively in one form or another. The National Highway Traffic Safety Administration estimates that automotive service consumers are scammed tens of billions of dollars every year. Repair shops—dealerships, local shops, and franchises—are repeatedly at the top of consumer complaint lists every year.
RepairTrust Consumer Surveys indicate the following...
86% of car repair customers surveyed stated car repair prices are either too high or outrageous
78% of car repair customers suspect that they pay too much for car repair
70% are concerned about getting overcharged for car repair
40% stated that they knew they were overcharged for car repair
73% want a resource to determine fair car repair prices
78% want information that will help them avoid car repair scams
69% want information that would allow them to advocate for themselves
62% want information that will help lower car repair costs
It's important to note that there are three broad areas of car repair fraud:
Consumer Fraud - this is probably the area that you're looking to investigate, and the area with which most are familiar
Warranty Fraud - very few realize the millions stolen from the vehicle manufacture by their dealer partner
Dealer Fraud - In-house fraud, or one department stealing from another (e.g., a service department billing fraudulent repairs to a sales department)
The information that we've collected from the dark underworld of auto repair is massive... I would encourage you to review the following FREE articles @ http://www.repairtrust.com/articles.html"
-Ted
Making Sense Of Auto Repair

Tuesday, March 04, 2008

Auto Repair: Check Engine Light – Why Is It On?

I get the check engine light question all the time. The answer is that I have no idea. There are literally thousands of reasons a service engine light can illuminate. Oxygen sensors, crankshaft position sensors, loose gas caps, rat-chewed wires - the list goes on….

One thing is certain – you should get it checked. But that is such an inconvenience! You have to schedule an appointment, drop off your car, pay a diagnostic fee, and then wait for the dreaded news, and cost.

Here’s a quick temporary solution that can ease your mind and may even reduce the strain on your wallet…. (You can also learn more @ http://www.repairtrust.com/check.html)

Most major Auto Parts stores (Napa, AutoZone) will scan your vehicle for free. While we need to be careful not to follow the advice and diagnosis of the parts guy scanning your vehicle for check engine light codes, it may ease your mind to know just what circuit and/or component is malfunctioning.

I recently tested this free service at AutoZone when the engine light came on in my wife’s minivan. They quickly scanned my vehicle and pulled code PO135. They proceeded to print out a brief description of what this means and what component was malfunctioning. It turned out to be the heating element inside the oxygen sensor. Having seen this code many times I knew that if I installed a new oxygen sensor I’d be all set.

Auto repair shops will charge an hour’s labor to tell you this. If that’s all they’re doing, an hour is probably not justified. However, if it’s backed up with documentation, print outs, and a solid recommendation of what it will take to repair and/or proceed, then that is worth it – usually.

It’s the not knowing that drives us nuts! That’s why I suppose I’m peppered with this question weekly. So, if you must know, and don’t want to pay anything, check out a major auto parts store and see what pops up during the free scan.

Let me know how you make out…

Best,

Ted Olson
RepairTrust.com
Making Sense of Auto Repair