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First, 98 % of ALL service centers are overcharging. This includes dealerships, local shops and franchises. Stating that dealerships charge four to six times higher unfairly singles out this portion of the industry. We need to watch out for every type of service facility. While it’s always easier to focus on the big, faceless name of a dealership, it’s unwise. Your local mechanic who you pass in the grocery store is just as likely to rip you off.

Myth One: The parts are more money.
This is not true. Dealers, for the most part, stick to MSRP (manufacturer suggested retail price) guidelines. Guidelines, as abused as they are, are better than none. Local shops have no guidelines. They can charge whatever they want.

We've all been taught that aftermarket parts are less expensive than factory/MSRP parts—this is not true. A frequent “case in point” is air filter prices. Below is a sample from one of many actual invoices:

• Dealership/MSRP Price: $17.00 (factory fiber filter)
• Local Shop/Aftermarket Price: $32.00 (aftermarket paper filter)

Myth 2: The labor “time” is higher.
Actually, many dealers follow manufacturer recommendations and industry standard multipliers. In other words, they’re not just shooting from the hip. The labor "time" (i.e., how long it takes to repair something—1, 2, 3 hours…etc.) may be lower than the resulting times from the labor price-gouging tricks practiced by your local garage.

This is not to say that dealers don’t practice labor tricks—they’re the masters! It is to say that they are more inclined to follow suggested guidelines.

Myth 3: Dealers always rip people off. In the automotive service industry, every type of service center rips you off, dealers are no exception.

-Theodore P. Olson (Ted) http://repairtrust.com/

Ted holds extensive certifications from Mercedes-Benz, Toyota, General Motors, ASE (Automotive Service Excellence) and more. Over a twenty-year period in the automotive service industry, he has served as a technician, shop foreman, shop manager, shop owner, service advisor, service manager, and service industry consultant.

Other Works by Ted Olson Include:

• ARREST the Automotive Service Industry!
• Maintenance Myths: A Step-by-Step Guide to STOP Getting Ripped Off!
• Auto Repair: The Shocking Truth About Who's Ripping You Off and Why!
• Automotive Service Pricing Strategies—a fair pricing guide for service centers
• Being the Best—a comprehensive customer service handbook for service advisors
• Service Center Personnel—an auto repair informational for general service staff
• Service Mission Statement—a philosophical proposal to improve customer service

Article Source: http://EzineArticles.com/?expert=Theodore_Olson