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CBSNews /

CBS/ April 15, 2010, 9:30 AM

Is Your Mechanic Taking You for a Ride?

If you've ever felt ripped-off by your car mechanic, you're hardly alone.

In a recent survey by AutoMD, a consumer information Web site on car repairs, 88 percent of car owners said they've felt ripped off at the repair shop.

But is it true?

"Early Show" Consumer Correspondent Susan Koeppen and her team sought the answer to that question. They teamed up with AutoMD in an undercover investigation to see what would happen when they took cars to repair shops.

AutoMD is a Web site that helps consumers diagnose problems with their cars and gives information on how much it should cost to fix them.

Koeppen shared the results of their investigation on the broadcast Wednesday. She explained the undercover investigation had two cars that needed new brake pads. According to AutoMD the repair for each car should only cost $180.

Koeppen's team traveled across the country to find out what would happen at different repair shops.

Their journey began in Los Angeles with the purchase of two identical cars.

Both were inspected by a mechanic -- and given clean bills of health -- except for the brake pads.

Shane Evangelist, president of AutoMD, said they ground down the pads, so they had 2,000 miles left on them. Koeppen noted this should be an easy problem for a mechanic to spot and fix. But would it be for the mechanics encountered by Koeppen's team?

So Koeppen's team hit the road. With mechanics behind the wheel of each car, they headed from Los Angeles to Dallas, Texas.

At a dealership there, the mechanic said the "main concern" was the brakes.

He wanted to fix the brakes, but he also gave a laundry list of additional repairs the car supposedly needed. He was going to charge $219.95 for the brakes, $54.75 for the diagnosis, $39.95 for wiper blades, $129.98 for an injector flush. $69.95 for a fuel filter and $99.95 for a coolant flush. The total for all this work would have cost $614.50.

Responding to the prices, Evangelist said, "To me, they're taking money out of your pocket. It's just that simple."

Evangelist said it's true consumers have no idea if they're getting ripped off by a mechanic.

He said, "There's work being done that doesn't need to be done, and people are getting overcharged for the work that does need to be done."

Koeppen's team went to four more shops in Dallas. Each mechanic gave a different set of problems and prices, ranging from $180 to $420.

Next, they moved on to Washington, D.C. A mechanic there wanted to charge $320 for repairs, but, Koeppen pointed out, he didn't even remove the tires to check for a problem.

However, another mechanic in Washington, D.C. pointed out the bad brake pads and offered to fix them for the reasonable rate of $169.

Koeppen's team ended their trip in New York, where they got the best quote of the trip: $160.

The mechanic told them, "All you really need now is pads, that's all you need."

But it was a different story at a New York City dealership, where they charged $119 just to diagnose the problem -- without even fixing it.

Evangelist said, "This is flabbergasting to me. They did get your $120 dollars on a job that should cost $180 to get completed. Yet you still have bad, bad brakes."

Another New York mechanic wanted to replace the front and back brakes on the car -- a $400 repair.

He told Koeppen, "I can guarantee you won't get a better price anywhere around here -- guaranteed."

But Evangelist reaffirmed to Koeppen that nothing was wrong with the rear brakes.

He said, "I am 100 percent positive."

By the end of the trip, only three of the 13 shops Koeppen's team visited gave a quote for just replacing the brake pads at a price at or below the industry average.

Evangelist said, "There are some really good mechanics out there, unfortunately what we found is that they happen to be in the minority."
Copyright 2010 CBS. All rights reserved.
22 Comments Add a Comment
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The_Tyler says:
It is horrable but I know that if I have my wife take one of our cars into a shop they will ALWAYS charge her more then they would with me, so I let her take it in then I show up 10 mins later and say "so now what is the price" it always gets the shop owner (or manager) red in the face! I have too been taken for a ride! I fix cars for a living at a <a href="http://canddautorepairs.com"> foreign car repair </a> shop, so I love it when other shops highball me.
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Buckeyes2013 says:
This is a good idea and app, but what about something for us lazy people? Since most of the US is lazy like me I don't want to depend on doing the research myself. Are there any other options? I found Repair Smart to be a good option, but they seem to be the only ones. http://www.repair-smart.com
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Buckeyes2013 replies:
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<a href="http://www.repair-smart.com.com/">www.repair-smart.com</a> Maybe this will help people. Sorry, I am new to this.
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kristinbrocoff says:
I am the marketing manager for CarMD (not to be confused with AutoMD). Ironically, we just completed a Harris Interactive survey that found two-thirds of U.S. car owners feel mechanics/auto repair facilities are trustworthy. However, if you've had a bad experience, moved to a new town or just want to be sure when it comes to that estimate, CarMD offers a product that provides probable fix down to parts and labor in your zipcode. The CarMD proprietary knowledgebase has been under development for over 12 years and is updated daily.
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thefactfinder says:
Directly from Forbes.com:

Shane Evangelist
Chief Executive Officer and Director
U.S. Auto Parts Network, Inc.
Carson , CA
Sector: SERVICES / Auto Parts Stores
Officer since October 2007

36 Years Old
Shane Evangelist has been our Chief Executive Officer and a director since October 2007. From August 2004 to September 2007, Mr. Evangelist served as Senior Vice President and General Manager of BLOCKBUSTER Online, a division of Blockbuster Inc., which he joined in 2001, where he was responsible for leading the creation, development and launch of Blockbuster?s online movie rental service. Prior to that, from January 2001 to July 2004, Mr. Evangelist served as Vice President of Strategic Planning for Blockbuster Inc., with responsibility for strategy development, mergers and acquisitions, marketing and capital deployment. Prior to Blockbuster, Mr. Evangelist began his career at IBM where he served from 1997 to 2001 as a business executive responsible for media and entertainment accounts. Mr. Evangelist holds a B.A. degree in Business Administration from the University of New Mexico and an M.B.A. from Southern Methodist University. We believe that Mr. Evangelist?s valuable business and leadership experience, particularly in the e-commerce industry, his experience running an industry-transforming business, combined with his intimate knowledge of our financial and operational status gained in his role as our Chief Executive Officer, qualifies Mr. Evangelist to serve as a director.
Compensation for 2009
Salary $358,758.00
Bonus $317,000.00
Restricted stock awards $338,100.00
All other compensation $14,062.00
Option awards $ $921,337.00
Non-equity incentive plan compensation $0.00
Change in pension value and nonqualified deferred compensation earnings $0.00
Total Compensation $1,949,257.00
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thecardoc replies:
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Impressive. With the ink dry at the bottom of our schedule C we just barely broke 50K in 2009. His bonus is 1.5 times what out shops gross sales were. We got to that 50K gross in a large part because of my second job teaching.
Would he get up in the middle of the night to jump start your car like we do?
Does he have a loaner car to lend you while your car is being serviced like we do?
Would he have any idea how to perform 99% of the services your car could ever require like we do?
He does sell parts and markets them in a way that suggests we are not being fair with our customers.

We have to apologize for earning just over 50K last year because of everything that we invest in for our customers. He earned almost 2 mil.
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thecardoc says:
What I am sorry about the most is the expenses to own and run the shop are climbing. Physically the work is getting more challenging. Plus since most of my competitors are going to retire in the next decade or less they have decided to not make any further investment in their businesses or their people. All of those forces and a few more make it clear the days for our shop to continue to serve our customers is numbered. Our competitors whom you can find with Automd will show you how to find us, if a problem with your vehicle exceeds their capabilities, if we are still here that is.
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thecardoc says:
After such a solidly produced segment about the auto repair industry and how so many of us are taking advantage of our customers I am compelled to write a formal apology to all of the vehicle owners out there.

I'm sorry that you cannot find my shop listed on Automd. However you can find several of my competitors, you see it does us little good to advertise right next to them because our labor rate is a little higher than theirs.

I'm sorry that paying our own way through this world shifts a particular burden onto the consumers who might need us some day. One of the largest expenses we have each month is our health-care premium, that's $1532 a month for my wife and me. You can always choose two of my competitors who are cheaper because they don't provide health-care for their employee's. By the way, that's supposed to go up 30-40% in July. I don't know where that money is supposed to come from. But with my wife's condition we are going to have to find a way.

I'm sorry that the technology driving the changes in today's cars forces us to invest in the same computerized scan tools that the dealer uses in order to completely be able to service our customers vehicles without having to have to guess and throw parts at the car. Yes, I know Automd claims to be able to tell you exactly what is wrong over the web. When they "guess" correctly what we do looks easy. But what about when the silver bullet guess doesn't work and you truly need a technician with the factory scan tool, a degree in electronics, and the hands on experience to actually diagnose a problem with your vehicle? We are out here, but you cannot find us with the Automd approach.


I'm sorry that the segment as presented made no reference to whether the vehicles in question were in fact due for any manufactures scheduled maintenance. A technician stating a car does not need something from a visual inspection does not equate to actual service history as prescribed by the manufacturer. Technicians fix broken cars, and do maintenance on others to try and prevent breakdowns. Dealers are typically very good at pulling history for scheduled services and making recommendations based on that available history. Now I'll pick on Hyundai although they are not the only ones. Imagine for a moment you own a Hyundai and at 70,000 you come into a shop for an oil change and they suggest you replace the timing belt. This "story" has made it appear that the technician by recommending that you replace the belt is trying to rip you off. Meanwhile you have actually exceeded the correct service interval of 60,000 miles. Now lets fast forward another 10,000 miles and at 80,000 your timing belt breaks and it bends all of the valves and you now have a $2000 failure on your hands because its not under warranty because you failed to follow through on the manufactures recommended service. But wait there's more. Shops have been sued successfully because they didn't make just such of a recommendation. So we are wrong if we advise you to replace the belt, and we are wrong if we don't. No, wait that just doesn't work now does it? The one thing we that we cannot be is wrong both ways. Yet if I had left that unchallenged I would be letting Automd re-write that same old trap for us. That would leave you the consumer, incorrectly informed and vulnerable to a preventable disaster. I saw Hyundai deny a transaxle repair at 90,000 miles last fall because the owner had no proof of ever having the transaxle serviced.

Again I apologize for needing to run a business that repairs cars as a real business. I'm sorry that it takes both a good labor rate, and a parts profit per hour to do that. I'm sorry that Automd sells parts and our pricing strategy doesn't sync with their business plan, they want to sell you the parts and have us simply install them without the correct service line gross profit that our business requires. I'm sorry that after thirty plus years of fixing cars, and attending hundreds of schools that the technology on today's cars is changing so fast that I have more training ahead of me than I do behind me! So I have to plan for that expense as well, and yes that must be passed onto you the consumer. I'm sorry that a cheap generic scan tool does not do the whole job that you need me to be able to do. Therefore I have to buy as many of the O.E. tools as I can afford to make payments on, and purchase the software updates for each of them each year. I'm even more sorry that there simply isn't enough money to support more than just the big six manufacturers fully. After my shop you likely have no other choice than the dealer for the more advanced repairs that any of the other vehicles could demand. Heck I'm definitely sorry that lately in order to keep the shop afloat I also teach in the evenings, and now in my fifties I work seven days a week.
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thecardoc replies:
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What I am sorry about the most is the expenses to own and run the shop are climbing. Physically the work is getting more challenging. Plus since most of my competitors are going to retire in the next decade or less they have decided to not make any further investment in their businesses or their people. All of those forces and a few more make it clear the days for our shop to continue to serve our customers is numbered. Our competitors whom you can find with Automd will show you how to find us, if a problem with your vehicle exceeds their capabilities, if we are still here that is.
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ScottG-CO says:
I guess the comments from the page the video were on, so I copied my tresponse from there here as well:

As much as I disdain this type of sensationalistic media hype over my chosen profession, I CAN NOT let this one slide. AutoMD is a MARKETING RESOURCE for shops that do business with them or choose to pay an annual fee to be listed. If I were to use their cheap line of pads that cost me 19 bucks (oh yes they have them) I could do your brake job for LESS than they state- yet if I chose to use a competitor's PREMIUM line of pads (cost approx. 68 bucks) I think their estimate would fall a tad short of reality.

You fine car owners can't even take the "Owner's Manual" out of the second largest purchase you all make (right behind a house) and read the dang directions for the thing- and this reporter is telling everyone to "get educated" or (and even better) try to BS your way through a meeting with "your" mechanic!

How about everyone find a shop that you are comfortable with and can establish a RELATIONSHIP with the person you speak with whenever you have a car question? The vast majority of shop owners and techs are NOT thieves, but regular working folk like all of you- the good ones take a LOT of classers to keep current on the ever evolving technology in your vehicles to keep you and your family SAFE! Remember, we travel the same roads and do NOT want to have a "chance meeting" of vehicles!

As a former shop owner, I did everything I could to educate the folks that were kind enough to allow me to care for their vehicles. I felt everyone of them was, and to this day remain, my FRIENDS and treated them as such!

Even a night's sleep has NOT changed my mind on this topic (so it must be the truth- afterall, it IS on the internet, eh?)!
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MommaMiaS says:
Like many undercover stories I have read, the devil is in the details. How exactly did the guy "...ground down the pads, so they had 2,000 miles left on them. " Our shop measures the pads and compares the measurement to factory specifications. This is industry standard. Also, if the pads were not ground down perfectly straight our technician would have suspected a caliper problem and recommended further repairs. The article states, "Their journey began in Los Angeles with the purchase of two identical cars." Were these new or used vehicles? If used, what was the mileage of individual vehicles? If a factory maintenance was due based on mileage, our technician would have also recommended additional maintenance items. Finally, every business owner has the right and the responsibility to seek compensation which allows his business to prosper. Every employee must be compensated for every minute spent on every job. If proper inspection and testing takes a half hour, then the shop must compensate the employee that half hour. Most reputable shops will charge for inspection and testing. Since every business is unique, I expect prices for many services to vary shop to shop and region to region. To say, "... they're getting ripped off by a mechanic." requires a lot more information.
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edixope4842 says:
The situation with which to be careful are the quick lube and oil change shacks. The last one I used had a special on a lube and change, also found $400 worth of "recommended" services that needed to be performed.

By the way, according to the technician, it was against the law for me to stand outside of the service bay and watch him service the vehicle. I was required by the technician to go to an area where I could not even see my vehicle. So, other than the sticker placed on my windshield, I have no proof that anything was actually done.
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wick2201 says:
I am an A.S.E. certified master auto technician and have worked in this field since 1985. Let me add some suggestions, the best way to find a good repair shop is to get recommendations from your friends and family. Most stories like this recommend checking AAA approved shops,I also suggest checking out Automotive Service Association at www.asashop.org to find a good shop in your area. ASA members have a code of ethics. Find a good shop and stick with them as they will have your car repair history on hand. This helps with warranty issues and maintanance history. They may not have the cheapest price but won't need to sell you other things to make up for "lost leaders". The "mechanic" at the quick lube probably isn't trained at an auto tech school. I never heard anyone say "When I'm done with school I'm going to work at the quick lube". Most techs are paid by a flat rate hour system (no work,no pay) so they will point out needed repairs. This is good, you want to know what your car needs, watch out for the pressure sales i.e. "This car isn't safe to drive". If you drove it there you can drive it out. Most important, check your cars scheduled maintenance and do it (most cars are severve duty).The schedule is in the owners manual.
I would also like to point out that there are crooks in all fields. Do some research and learn a little about what you need done.
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