According the National Highway Traffic Safety Administration, it is estimated 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. Multiple undercover investigations have caught repair centers red-handed ripping people off. Government agencies across the nation warn against service center repair scams. Consumer advocate groups constantly provide tips and suggestions to avoid getting ripped-off. Service industry insiders continually step forward to expose service industry abuses. Study after study reveals that service centers are manipulating industry guidelines. There's a real problem! Yet, there are still skeptics.
The above comments are sweeping strikes against an industry so vital to the community. Yet even these known facts don't take into account the unknown. Ripping people off in the automotive service industry is so ingrained in the business design and culture it's considered normal. In other words, before one even begins to uncover excessive charges, this self-regulating industry hasn't just stacked the deck, it has built and entire house of cards.
The bulk of auto repair scams go unnoticed (in spite of the tens of billions already recognized scammed from service clients yearly). Few understand the service industry's pricing guidelines and accountability structures, much less its scams and tactics. Service customers have no idea if they were charged fairly or not. Most customers leave actually thanking their service representative when they should be questioning the bill!
Service centers are quick to protest, shouting, "We're honest and fair." Yet, when questioned on their billing practices they don't know, follow, or even understand established guidelines.
If they don't know the rules, then how are they playing the game? The answer is simple: they make the rules up based on loose interpretations of industry guidelines. Loose interpretations allow for a plethora of pricing abuses. Is it any wonder every state has warnings about car repair scams--including Alaska!
In the process of developing a solution to end price-gouging, RepairTrust has stated that 98% of ALL repair shops are ripping people off in one form or another. During these studies, estimations actually pointed to 100% of service centers price-gouging. However, we allowed for a margin of error and reduced this to 98%.
In light of the ever-increasing evidence of repair scams and pricing abuses, RepairTrust may reconsider the margin of error!
