Where to take your car for repairs or service / How to save on auto repairs or service / Should you use dealer's on an independent repair shop.

A GUIDE TO DEALING WITH REPAIR SHOPS

I am not an auto mechanic. So why care for my opinion? As a dealer who sold lots and lots of cars, I have learned some very important things about this industry. Today, I want to discuss one the things I’ve learned.
Should you service your automobile at your Dealer, meaning franchise car dealer service department, or an independent shop?
Rather than do an essay on the subject, I am going to present Cons in Red and Pros in Black to you, as I see them, and I will conclude with links to some stories I have recently come across which seem to support my personal opinion: find yourself a good independent shop, establish a relationship, care for your cars (you spent a lot money buying them, spend some caring for them) and you will realize significant savings:

DEALER INDEPENDENT

LABOR RATES
Usually in the $100-$125/hr range.
Are these auto mechanics or lawyers and doctors?!
Dealers have to charge these rates, as they are often unionized, and they have to cover their enormous overhead – pay for 3-12 service advisors, marketing, advertising, mass mailing, 3 secretaries, 2 billing clerks, subsidize sales support, etc.. They also have to pay the manufacturer as part of franchise. It adds up pretty fast.		 Usually $35/hr and up. Many good shops will not charge more than $75/hr. I’ve seen some shops ran by former dealer mechanics who want to charge nearly as much as a dealer (i.e. $95/hr), but I see no reason to pay such rates. These shops rarely spend (and should not!) as much on overhead and, if only because of their greed, there is no reason to pay such rates.
Will usually bill you by the “book”. “Book” rates are standard time billing amounts assigned to a particular job. These are industry standards.
For example, average “book” rate to replace brakes could be 1.5 hrs. That’s 1.5x$110=$165 in labor alone! How long should it take? 30-40 minutes. Why do they do it? Because they can, because they all do.		 Good shops should charge you for actual time spent on a job. Good shops should be efficient in getting a job done. Many charge a reasonable flat rate for a particular type of job. For example, the shop we work with would charge an average of $40 to replace brake pads (comes out to about 40 minutes)
PARTS
OEM parts are good. Most of the time, anyway. They are also often quiet expensive. Dealers only use OEM parts – it is a condition of their franchise agreement. So, the Good is in the parts, but the Bad is that you cannot choose on your own. You get a package deal with no flexibility. Good shops should offer you a choice of parts – you can choose often more expensive OEM, or select a less expensive, and often just as good, aftermarket alternative. Sometimes you can save over 100% (i.e. $40 aftermarket brakes vs. $100 OEM). A good shop will know which aftermarket parts are comparable in quality to OEM, and which are not (but could still be ok if you want to save more). Some aftermarket parts are actually made by the very factories which manufacture OEM parts! Do your homework.
Dealers generally do not fix parts. By that I mean that if, for example, your window regulator is acting strange a dealer is not going to try to fix it – they will replace it with a new one and make you pay for it. Many things could be a simple fix, but a dealer would almost never try that – most of their profit comes from service and part sales.

Dealers will never offer you a choice of parts from a junk yard (recycled parts)! They won’t care about saving you money; they need to care about their (bloated) bottom line.		 Good shops will try to fix things before they will replace them. A shop would try to fix the window regulator before deciding to replace it. Why? Because if that’s what you want them to do you’ll still be paying them for the time. And many things could be fixed by handymen. A good independent is a good handyman.

A shop could also suggest a used part (i.e. from a junk yard) which could give you huge savings! Now, don’t be scared of parts from junk yards – you generally buy these for 30-50% of the cost of a new part and they often come with a warranty (1 month or longer, depending on a part). Many will come out of “fresh” cars and will work just as well and as long as new parts. For example, you could pay $200 for a computer from a junk vs. $500 from a dealer.

Recycling works and saves You money!
TRAINING
Dealer mechanics are well trained in the particular brand. This is where they could have an upper-hand.
However, I often see dealer mechanics as young, straight out of a technical school, with experience limited only to a particular brand. Specialty is a good thing, but narrow specialty limits one’s scope and abilities.
Diversification (working with many different makes and models) has many advantages.
I am not knocking dealer shops; some of our local dealer shops have mechanics who have worked for them for years (5, 10, 20) and truly know their cars. An expert is valuable whether they are at the dealer or an independent, but I often see these people leave for better jobs, usually to go on their own.		 I think that good mechanics have to be diversified. Some of the best I know would not fear working on a Porsche after they just fixed a Ford. After all, machines have many common features.
Many independent shops employ or belong to former dealer mechanics.
Unless you have an established relationship with your shop and completely trust your mechanic, the general rule is – just about anyone could change brakes and oil on just about any car. When complex issues require attention, your mechanic should be honest with you about his ability to deal with an issue or should, as the case may be sometimes, refer you to a dealer shop.
 
Dealers have access to complete manuals for their brands, makes, models. Good shops would find access to same/similar materials Dealers have. It gets to be expensive, but good shops have to invest in themselves. Data access on some fancier brands may be somewhat limited and expensive, which may require a specialist.
Dealers have make/model specific equipment, including tools and computers. Most mechanical tools are pretty generic, but some specials tools are occasionally needed. Computers (diagnostic equipment) are very expensive and most shops have generic ones (i.e. Snap-On), which also don’t come cheap, but can work with most makes and models. However, occasionally, specialized computers could be necessary and shops which specialize in particular brands (i.e. Mercedes, Porsche) often invest in these expensive machines or bring in outside consultants.
"UP-SELLS"
Most dealers will try to sell you packages which, in my opinion, are rarely necessary. For example, they’ll try to sell you a so-called 30k mile service for $475, which will include an oil change, windshield wipers and a 167-point inspection. So why couldn’t you go to an independent shop and change your oil for $35, wipers for $40 and have a mechanic notice things (for free!) even if you’ll have to pay them for an hour of work (at $65/hr average). Wouldn’t you want to save $300+ dollars???

On a bright side, dealers often have very competitive rates for oil changes. While at it they will also try to up-sell you on something else! (Hey, your brakes look a little low – how low? Well, maybe 5-7,000 miles left on them. To some people that’s 6 months to a year worth of driving! Do it when you need to! Most newer cars have sensors which will tell you when to replace your brakes)		 A good independent shop will maintain your car healthy and will “prescribe” whatever service/repair is necessary at the time. They’ll change your oil as needed (generally every 3,000 miles), your brakes when needed, your wipers when needed, and will look your car over every time you bring it in for service. This “look over” may not mean a 167, or a 175, or a 200 point inspection, but a good mechanic will look at important places and should notice many things without looking too hard. This could only take 10 minutes, but this is what establishes trust between them and you, the customer, and what will bring you and your friends and family back to them.
At the dealer, you almost never interact with a mechanic working on your car. You work with a Service Advisor. Service Advisors are (often) great guys and gals, who take you concerns, write them down and read them to a mechanic. Many of them are technical enough to figure out what the problem might be or think of a possible related problem. But, they are also in place to up sell you. This is their job, and you pay the extra labor rates for it. Most independents allow you to talk directly to your mechanic. You address you concerns to them. Of course, mechanics are often “less-refined” than service advisors, sometimes would (should) have some grease on them, but they are ultimately the ones working on your cars.
WARRANTY
Be sure to take your car for breakdown repairs to a dealer, if it is still covered under original new car manufacturer warranty (3 yrs/36k miles, 4 yrs/50k miles). The warranty comes with a (new) car, use it – it’s “free” (whoever bought this car new paid the price). Be sure to tell the service advisor that you want them to fix things covered under a warranty, or you could find yourself in a situation where a dealer will replace a light for free ($5) and perform “dealer recommended” oil an brakes for $500, something you could’ve done at an independent shop for a lot less.

As a used car dealer, if our cars are covered under a warranty and something needs to be addressed we do take cars to franchise dealer shop. Some service advisors are pretty good, and once we have established a relationship with them, they will know to do only what’s needed to be done, without the up-sell.		 Independent shops cannot perform free repairs under original manufacturer new car warranty. Only dealers could. However, independents could accept third-party extended service contracts (warranties). Advise the shop that you have such a plan before they start performing repairs; let them call the warranty company and work the case.
As strange as it may sound, dealer shops won’t always tell you the truth. How’s that? Well, we had situations where dealers wanted to charge us a full price for a battery replacement while the car was under a full warranty. Granted, some parts could actually have a pro-rated coverage (i.e. 100% in the first year, 75% in the second, etc..), some dealers wanted to charge us a “full boat” and sell us the part we shouldn’t have been paying for. Be alert and pay attention to what you are being charged for. At times it could be helpful to call the manufacturer HQ (all manufacturers have service lines available from their websites and dealers have to give you same) and confirm coverage. Since shops won’t do any OEM warranty work, this is not an issue here. Simply pay attention to your bill and don’t shy away from asking questions.
Most dealers will warranty their repairs for up to 12 months. Most OEM parts carry a warranty up to 12 months. Be sure to keep your receipts. Most shop will warranty their repairs for 6 months, on the average.


Truth be told, if something was fixed right it should not break again anytime soon. So, most of the time, 6 months or a year is plenty warranty for a job – you should not be doing it again for even longer than that.
MISCELLANEOUS
A significant advantage dealers have over independents is a free car rental while your car is being repaired. However, many dealers will only provide free rentals to customers who purchased that vehicle from them, and primarily on new vehicles. Most extended warranty plans will provide a free car rental as well, whether such plan is purchased through franchise or an independent dealer.

Equally applicable to dealers and shops: do a walk around (a condition report) when you are dropping your car off and when you are picking it up. Protect yourself from any accidental damages (scratches, dings, curb rash on wheels, or worse) while your vehicle is in their (out of your) possession. Things could happen and you’ll be out-of-luck if you do not note cosmetic defects right away. Most dealers have staff that does condition reports as soon as you pull into the shop. Confirm all damages for yourself before signing off.
Dealers often throw in a free car wash (hey, save 10 bucks) and have free coffee and snacks. Shops are rarely as clean as dealers, but you generally save much more than the free carwash and a donut.
Dealers won’t allow you to choose your own parts (OEM or aftermarket), oil (i.e. Mobil or Castrol), etc. Shops will use whatever parts you tell them to use – that is if you do. They will use what they want by default.
RELATIONSHIP
How to establish a relationship with your dealer? Start with a service advisor. After all, after you bought the car, you no longer see or need the salesperson and the service advisor becomes your contact at the dealership. So, always be nice to your service advisor and always tip them, as you would, say, a waiter. A $20 is good. They’ll know you care, they’ll care too. A good person should feel obligated to take care of you once they get tipped, which, in my opinion, completely justifies the tip. It’s a small price to pay to buy a bit of loyalty. Remember, no matter how sweet your service advisor is their loyalty is to their employer, the one who pays them. So, once you chip in on the pay, you become a part employer. Now, I prefer to tip/"grease" upfront, when I am dropping a car off for service. I want my service advisor to know I care before they even look at my car.

If anything, it may help get you get that next service appointment faster than the other guy.
Unfortunately, there’s too much “rotation” in the field – dealers often move service advisors among their dealership. So, take you chance, but still tip them.		 Build it with your shop over time. There’s no service advisor, the owners stay the same, so your relationship will evolve over time. Tipping a mechanic is a good idea. Amount of tip depends on the job – maybe $5 for an oil change, $10 for brakes, $20 for a larger job, etc.





 
A word on Service Appointments: you need to schedule one with most dealers before you could bring your car in for repairs. Dealers need to do it to keep up the busy and important appearance. Most will schedule you within 24-48 hours. Most shops will take you whenever you’ll come. Few bother building up the “busy” image – they just want you to bring your car in so that they could earn their dollar today. I personally find that busier shops tend to be better – if they weren’t good why would there be a line of people waiting for them?

To summarize, in my opinion there are greater benefits of using an independent service shop. Of course, you need to find one first. Some independents will behave as if they were a dealer service department, utilizing same pricing and (sale) techniques. Don’t be discouraged – talk to your friends and family and find a place you can trust. Don’t forget, this is your car, your money and you decide where to bring it and where to spend it.
Some areas of the country have more (and better) independents, whereas in other areas your only choice may be a dealer. In this case, my little guide may not do you much good, but perhaps it’ll help you build your confidence and encourage you to do your research if a dealer (or a shop) sticks you with a bill too high or tries to sell you things you don’t need at the time. They can, and often will, try, but it does not mean that they can always succeed. At the end of a day, it has to come down to trust, although you trust should not be blind. I am happy to say that we’ve been using the same shop for many years and our trust and savings go a very long way!

Here are some links to reputable news posts which seem to share my opinions:
http://www.cnn.com/video/#/video/living/2009/03/15/levs.mechanic.scams.cnn
http://www.cnn.com/2009/LIVING/wayoflife/02/27/aa.auto.repair.shop/index.html

Good luck to you and we’ll be glad to answer your questions and hear your concerns and objections.

CompassLuxor Exotic Motors. Copyright 2009. Reproduction in part or in whole or use without prior permission is strictly forbidden.

 

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