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Vehicle repairs cost an average 34 percent more at new car dealerships than at independent repair shops, resulting in $11.7 billion in excess costs annually to consumers, according to research from the Automotive Aftermarket Industry Association (AAIA).
The study reveals differences in the costs of parts and labor between domestic and import vehicle nameplates and from city to city. Consumers in Los Angeles pay as much as 46.8 percent more at dealerships than independent repair shops for repairs, according to AAIA.
The cost to consumers of specific repairs also varies widely. For example, the average cost for radiator repair for a foreign nameplate vehicle, including parts and labor, is $325.99 higher at a dealer than at an independent shop; and the cost to purchase and install front brake pads on a foreign nameplate vehicle is $138.92 more at a dealer than at an independent shop.
AAIA’s Vehicle Repair Cost Analysis: Comparing New Car Dealerships vs. Independents looks at the parts and labor costs of 10 vehicle repair jobs for domestic and foreign-nameplate vehicles in six cities across the country, including Boston, Newark, Atlanta, St. Louis, Los Angeles and Seattle.
The research includes a number of other highlights:
- Vehicle repairs for parts and labor averaged 34.3 percent more at new car dealers than at independent repair shops.
- Foreign nameplate repairs performed at dealers averaged 36.8 percent more than at independent repair shops, while repairs performed on domestic nameplates averaged 31.5 percent more at dealerships than at independent repair shops.
Source: Motor Age Magazine