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05-09-2013, 09:59 AM   #1
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Auto Repair Parts Mark-up

Just realized/discovered that the auto mechanic I have been using for the last few years charges about a 100% mark-up over retail on parts. And apparently that is a pretty common practice! My last few overall bills have seemed high, which is the reason I started looking into it. I don't mind paying for good service, but this seems like a really deceptive way to go about it. Anyone with any thoughts?

05-09-2013, 10:06 AM   #2
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QuoteOriginally posted by Nick Siebers Quote
Just realized/discovered that the auto mechanic I have been using for the last few years charges about a 100% mark-up over retail on parts. And apparently that is a pretty common practice! My last few overall bills have seemed high, which is the reason I started looking into it. I don't mind paying for good service, but this seems like a really deceptive way to go about it. Anyone with any thoughts?
I always order all parts myself and give them to my mechanic. Dealers/shops charge a huge premium on top of regular retail prices, and I also learned this the hard way. The markups that I've seen range anywhere from 25% for expensive items to 100% on cheap stuff like wipers and fluids.

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05-09-2013, 10:18 AM   #3
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That's interesting Adam. At an auto parts store I would assume? I never would have thought of that but will most mechanics accept that? Not to sell you the parts? Just wondering.
05-09-2013, 10:26 AM   #4
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QuoteOriginally posted by magkelly Quote
That's interesting Adam. At an auto parts store I would assume? I never would have thought of that but will most mechanics accept that? Not to sell you the parts? Just wondering.
As long as the parts are genuine, they don't mind at all (at least all the places I have been to). I recently needed a new window actuator and was able to get one for $119 when the dealership wanted $179 for it.

Of course, this approach requires that you know the exact part numbers that you need. In my case, it's not too difficult because there's a web site listing all the parts for my car with lots of diagrams.


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05-09-2013, 10:28 AM   #5
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I used to work at a body shop. The receipts for parts we ordered listed both the price we paid and the suggested customer price, which was typically about 60% more. My boss was too nice to actually charge that price, though.

I wouldn't say it's dishonest to mark up parts. You're paying them to figure out what parts are needed and to hold those parts in stock (or order them). They have to make money on the time and effort they put in to that. If they didn't make money there, they'd just charge more for labor.
05-09-2013, 10:30 AM   #6
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QuoteOriginally posted by magkelly Quote
I never would have thought of that but will most mechanics accept that?
If they're like me (bicycle shop, not auto) it would depend on the circumstances. If someone has given me the opportunity to sell them parts and I could not get them from my distributors, or I couldn't match an online price I will gladly install what they went elsewhere to buy..
If they come in with something they bought elsewhere (usually on line) without giving me the opportunity first, and that they could have bought from me I either won't do it, or I will charge them enough in labor to equal the profit I would have made had they bought it here.
05-09-2013, 10:39 AM   #7
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One thing I'll add that almost all the parts that I've brought in needed to be ordered anyway. I would mind paying extra to avoid the wait on some of the smaller stuff, but when it came to upgrading my brakes, they wanted over a thousand more for the same part- so yeah no

Also, another thing that I've learned the hard way is you want to do as much as you can on your own. Stuff like wiper replacements, oil changes, topping off fluids, and replacing interior trim is typically trivial (and fun if you're into cars!).


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05-09-2013, 10:44 AM   #8
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QuoteOriginally posted by Adam Quote
Also, another thing that I've learned the hard way is you want to do as much as you can on your own. Stuff like wiper replacements, oil changes, topping off fluids, and replacing interior trim is typically trivial (and fun if you're into cars!).
I wholeheartedly agree, but a lot of that stuff got a whole lot more difficult after I stopped working at the body shop and got an apartment in the big city.
05-09-2013, 10:48 AM   #9
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I suppose the bottom line is "it will cost X for us to repair your car", but why even tell me that part B will cost $209 when it really only costs $107?
05-09-2013, 10:56 AM - 1 Like   #10
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QuoteOriginally posted by Nick Siebers Quote
why even tell me that part B will cost $209 when it really only costs $107?
Do you place no value on their efforts to determine exactly which part you need, and then the time they took to order it?
05-09-2013, 11:02 AM   #11
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100% markup is pretty high although a few garages may mark up that high on cheaper items like hoses and belts. I now work for a private fleet but when I worked for the dealership, prices were marked up from 20 to 40%, depending on the part. Different customers got discounts. Remember that your garage is a business and the mechanics livelyhood and reselling parts at cost isn't going to keep him in business very long. The most important thing to always consider about a garage is the quality of work and honesty about labor time. Labor is usually the biggest expense so it's worth checking up on what you have been charged. Most of the online sites charge for access but the Motor's manuals and guides are usually available in your local library and they should list labor times.
05-09-2013, 11:47 AM   #12
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QuoteOriginally posted by Adam Quote
Stuff like wiper replacements, oil changes, topping off fluids, and replacing interior trim is typically trivial (and fun if you're into cars!).
Adam, I've worked on mine and friends vehicles for years (over 43 years since I started at 16) and it's no longer fun. But saving money is! For example, take an average car into a auto repair place for brakes. Let's say you were bad, and waited until you needed new rotors too. Doing a four wheel brake job with all new rotors will run me in the neighbor hood of $150 - $170. Taking it someplace will run closer to $600, and more like $1,000 if it's the dealer. Even doing non-repair stuff like oil changes can save you money in more ways than one. First off, you know you are getting good quality oil and filter, something that is very questionable at fast oil change places. Second, you can check the same things they do, like air filter, coolant level, etc., and determine if you need to do additional service. Here's a tip: don't replace an air filter just because it looks dirty. Engineers will back me up on this: a dirty filter works better at trapping dirt and particles. Change it at the recommended intervals your manual calls for. Another tip: stay away from washable filters like K&N. They may save you the cost of new air filters, but they also let more dirt into your engine, which could cost you a lot more in the long run. Doing your oil changes also gives you a chance to look under your car for leaks or wear items (like the brakes I spoke about earlier). In this case, an ounce of prevention (replacing pads before you need rotors) can save you a pound of cure and money. And doing brakes is not rocket science or difficult, especially if we are talking about disk brakes, which is what many cars use now days.

Even if you are all thumbs, you can save money by looking around. For instance, you can take you car to the dealer and get new wipers for $100 or go to your local Pep Boys, Auto Zone, etc., and buy them for around $30 and they'll put them on for you right in the parking lot!
05-09-2013, 11:51 AM   #13
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When my converters clogged on my Hyundai I about died because the parts I kept seeing listed were about $1200 (two cats, plus the sensor for the thing). I wound up buying 3rd party cats online for about a third of that price and my mechanic was able to get them on and everything for basically labor costs.

Saved me a $1500 bill vs a $900 one after including the cost for the parts.
05-09-2013, 11:55 AM   #14
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QuoteOriginally posted by scratchpaddy Quote
Do you place no value on their efforts to determine exactly which part you need, and then the time they took to order it?
No, I do value that work. Which I would call "labor". Now, maybe there is a competitive advantage in having one's shop's labor appear less than another's, but it still seems deceitful. (and the "time they took to order it"? click click done, right?)
05-09-2013, 01:04 PM   #15
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I have a pretty good relationship with the sole owner shop I've been using for years. I went from doing all my own work to not being able to do any at all the last 2 years. Before hand I usually only went to him for state inspection or something major that I didn't have the tools for.

He knows I check prices and know what the appoximate labor time should be. I think he is quite fair in charging $42 an hour for his labor - after all he has a building, tools, taxes, etc to pay for. When I need something done that requires parts, we will sit at his desk and he will look up the parts and/or call his supplier. I always insist on non-Chinese parts if at all possible. Without me saying how much I find the parts for, he usually comes back fairly close - 10-20% more than I could buy them for myself. Being he has always been fair with me, and I know he has many bills owning a legitimate business with operating costs, I will let him get the parts.

This is for when he is working on my Ford. If my wife's VW TDI diesel needs parts, I have a fantastic vendor where I get mostly German origin parts for near the same price of generic parts - he is happy for me to procure the parts for the VW.
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