Monday, July 12, 2021

Common Hazards of Servicing the Vehicle You Purchased from your Car Dealership


  • You DON’T have to have your car serviced by the selling dealer. But you must have new car warranty work performed by a franchised dealer of the make car you own…it doesn’t have to be the dealer that sold you your car. Your warranty requires that you maintain your car according to your car manufacturer’sowner’s manual. Most car dealers will have an “enhanced” list of recommended maintenance which is designed to enhance their service department’s profits. A good rule of thumb is to ignore any service recommended by your dealer that’s not listed in the manufacturer’s owner manual. You should always keep receipts of all service you have done by whomever maintains your car. It might be necessary to prove to your car’s manufacturer that their recommended maintenance was performed in the event of a warranty claim.
  • Car dealers make a lot more money servicing cars than selling them. AutoNation, the largest new car dealership group in the USA, made over seven times as much money from their service and parts operations than their new car sales last year. The person that greets you in the dealership service drive is a commissioned salesperson even though their nametag might say “Service Advisor” or “Assistant Sales Manager”. The more service this salesman sells you, the more money he makes. The mechanic that works on your car and the service manager are also paid on commission.
  • Most car dealerships charge hidden fees in addition to the service you thought you were paying. These fees are disguised with names that make them look legitimate. Some examples are “Sundry or miscellaneous supplies”, “Hazardous Waste Disposal Fee”, and “Nuts, bolts, screws and other fasteners”. These may, or may not be costs to the service department, but they’re costs of doing business and should have been included in the price quoted to you. Typically, they’re calculated by a percent of the total invoice, usually 10%. These fees are always added at the bottom of your service invoice. There’s a good chance that the service cashier or service manager will remove this bogus charge if you complain. Most people never notice.
  • Car dealers advertise low prices on common maintenance items like oil changes, tire rotations, wheel balances, and tires. They know they must do this to “get you in the door”. Where they make their big money is on major repairs like transmissions, air-conditioners and water pumps. These expensive items are negotiable, and you should always get competitive bids from other service departments.
  • Always get a written estimate for your total charges before signing the repair order. Many states, including Florida, require the repairer to provide a written estimate if asked. In Florida, the repairer cannot exceed that written estimate by more than 10%.
  • In most states, the repairer can hold your car until you pay for your service. The legal term is a “mechanic’s lien”. If you don’t pay your bill, the repairer can sell your car and keep the portion of the proceeds to cover what you owe. A mechanics lien takes precedent over bank’s lien if your car is financed.

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