Auto Repair – Just How Much Fraud Is There?

There are still skeptics, but the following illustrates the depth of fraud? We received an inquiry from a reporter recently with one simple question – how much fraud is there? We thought we’d share our response here as well:


You ask a great question. RepairTrust studies show that 98% of all car repair shops are charging excessively in one form or another. The National Highway Traffic Safety Administration estimates that automotive service consumers are scammed tens of billions of dollars every year. And repair shops—dealerships, local shops, and franchises—are repeatedly at the top of consumer complaint lists every year.

RepairTrust Consumer Surveys indicate the following…

  • 86% of repair customers stated car repair prices are either too high or outrageous
  • 78% of car repair customers suspect that they pay too much for car repair
  • 70% are concerned about getting overcharged for car repair
  • 40% stated that they knew they were overcharged for car repair
  • 73% want a resource to determine fair car repair prices
  • 78% want information that will help them avoid car repair scams
  • 69% want information that would allow them to advocate for themselves
  • 62% want information that will help lower car repair costs

It’s important to note that there are three broad areas of car repair fraud:

Consumer Fraud – this is probably the area that you’re looking to investigate, and the area with which most are familiar

Warranty Fraud – very few realize the millions stolen from the vehicle manufacture by their dealer partner

Dealer Fraud – In-house fraud, or one department stealing from another (e.g., a service department billing fraudulent repairs to a sales department)


The information that we’ve collected from the auto repair industry is massive. We encourage folks to Get the eBook to discover more and learn how to save money.

Thanks,
~ Ted Olson
Founder – RepairTrust.com

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Comments

  1. Those figures are startling!

  2. I think that the general population does agree that auto repair is too expensive, yet is an unfair criticism to single out auto repair. The tool manufacturers that shops relay on are too expensive ($500 for 12 sockets? or $12000 for a scan tool?) , the insurance to operate due to the sue happy consumer ($20000 plus), the sheer technicality of the automobile requiring years of ongoing education, the starving auto manufacturers undercutting to gain market share and push out the independent, the federal and local regulations surrounding the chemicals and oils needed. These just a few factors contributing to the “expensive auto repair shop”. And in comparison to the rest of a persons cost of living auto repair has not increased. I know that the $5 / gallon milk is more expensive than it was 15 years ago but that doesn’t mean the grocery store is ripping me off. Shallow minded is he who cannot see the whole picture. Having complete confidence and trust in your technician, dealer or independent, is worth what you are charged. It really is that simple. If you get a doctor that tells you to cut sugar from your diet due a fractured leg – you don’t go back. He IS too expensive. If he gets your cancer into remission he is worth every penny. TRUST. PROFESSIONALISM. HONESTY.

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