| Whether it is for family matters or to commute | | | | with 25 percent, new car dealers, with 22 |
| to work, most of us depend on a car every day. | | | | percent, and general repair shops, with 15 percent. |
| And, while new cars, domestic and foreign, have | | | | Most auto repair problems continue to be local in |
| become more reliable and require less | | | | character. Nevertheless, this is an important |
| maintenance than older models, the fact is that | | | | consumer issue, and the Consumers Commission |
| cars break down and must be repaired. An | | | | is committed to assisting State and local law |
| individual who needs his car repaired promptly is | | | | enforcement efforts whenever it is feasible, and |
| susceptible to being charged for unnecessary | | | | to identifying cases that can more appropriately |
| repairs. Moreover, most consumers are not | | | | be addressed by the Consumers Commission, |
| sufficiently knowledgeable to know when what a | | | | rather than by State and local agencies. |
| mechanic is recommending to them is an | | | | There are some proposed changes that will make |
| unnecessary repair. | | | | this industry fairer, and reduce the problems |
| Even if a consumer thinks he has been defrauded, | | | | faced by consumers. |
| it is virtually impossible to prove that a repair | | | | First, the widespread use of flat rate manuals, |
| facility did anything improper once a repair has | | | | which list the average length of time needed to |
| been made. State law enforcement efforts, using | | | | make specific repairs. Repair shops may charge |
| stings and inside informants, can identify | | | | consumers labor costs based on those averages, |
| wrongdoers, but these efforts are unlikely to lead | | | | even though the actual repair times may be |
| to redress for consumers who have been | | | | substantially less. |
| defrauded. | | | | A second area of interest involved incentive |
| Traditionally, the automotive repair industry has | | | | compensation systems in the auto repair industry. |
| been licensed and regulated at the State and local | | | | These systems, which include the use of quotas, |
| level. Some States, for example, require auto | | | | commissions, or similar compensation may provide |
| repair facilities to give consumers a written | | | | incentives for sales personnel to sell unnecessary |
| statement estimating the cost of repairs, and also | | | | auto repair services in order to meet quotas or |
| require the repair facilities to obtain further | | | | receive larger commissions. |
| authorization from the consumer before | | | | The final concern is low-balling, a practice where |
| proceeding with work not listed on the estimate | | | | repair shops advertise deceptively low prices to |
| or if the cost of the repair will exceed the | | | | lure consumers into the repair shop, even though |
| estimate by a specified amount. Other States | | | | only a few vehicles will be eligible for the |
| impose licensing or certification requirements on | | | | advertised price. The staff of the Commission is |
| auto repair facilities and on auto repair mechanics. | | | | in the process of examining these factual, legal, |
| While recent cases have drawn much attention to | | | | and economic issues. |
| national auto repair chains, these chains constitute | | | | Another possible law enforcement approach that |
| a limited portion of the industry. For example, in | | | | has been identified is to focus on national |
| 1990, mass merchandisers accounted for only 4 | | | | franchised auto repair outlets, such as tune-up, |
| percent of the automotive after-market service | | | | transmission, and brake repair shops. These types |
| outlet market share. The three greatest market | | | | of specialty repair shops held about 13 percent of |
| share segments, together accounting for 62 | | | | the automotive aftermarket service outlet |
| percent of the market, were service stations, | | | | market share in 1990. |