WATCH OUT: CAR-REPAIR CROOKS HAVE SOME NEW TRICKS UP THEIR GRIMY SLEEVES
By GARY BELSKY REPORTER ASSOCIATE: LUIS FERNANDO LLOSA

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When I was a boy in St. Louis, my family's longtime auto mechanic, Dave, would spend half an hour under the hood of our car and then proclaim ominously: "Well, it could be anything." He was joking, of course--Dave always knew what was wrong and how to fix it cheaply.

These days, though, comic mechanics are a dying breed, and car repairs can be anything but a laughing matter. Americans spend roughly $90 billion a year to fix their cars, and experts estimate that 25% to 50% of that money is lost to fraud or incompetence.

Who are the culprits? More than a few bad actors among the nation's 757,000 auto mechanics--the majority of whom, of course, are honest and law abiding. But even these good citizens can be goaded by sales incentives that, according to a recent report by the National Association of Attorneys General's Auto Repair Task Force, encourage mechanics to push unnecessary work.

Compounding the problem is the increasing sophistication of automobiles. The high-tech wonders under modern car hoods leave many owners, as well as a lot of mechanics, more befuddled than at any time since the days of the Model T. To help you avoid rip-offs at the car shop, we interviewed more than a dozen government officials, mechanics, consumer advocates and other experts. Here are the five top problems they say consumers should look out for:

THE BIG LIE

Rip-off: A small problem is diagnosed as a much bigger one. For example, most cars built after 1980 have a central computer, or "brain," that controls many of their systems. When something goes wrong with, say, an engine valve, the problem is identified by a sensor, which signals the computer. Thus a mechanic can locate the faulty valve and then replace it. That's the theory, anyway. In reality, a slippery grease monkey may tell you he's found something wrong with the computer itself and the whole thing needs to be rebuilt. Your cost: about $150 to install the valve and another $130 for the unnecessary computer work. Worse still, if the mechanic sells you on a brand-new computer, you'll be out $400 to $900--all to fix a nonexistent problem.

Tip-off: Be skeptical of claims that your entire computer system (or entire anything, for that matter) is down for the count. And for any repair that seems unusually expensive or extensive, get a second opinion. "It's unlikely two mechanics from two garages will try the same rip-off," says Michael Maher, director of the Technical Services Bureau for New York State's Department of Motor Vehicles.

CREATIVE ACCOUNTING

Rip-off: You're charged extra for a lot of separate items that are really part of a single repair job. This trick is especially common with brake repairs. Your mechanic may tell you that you need to recondition your brake drums or rotors (average cost: $130). Your bill, though, doesn't stop at $130 but shows another $80 for repacking the wheel bearings. "They have to do that in order to turn the drum or rotor, and it shouldn't be treated as a separate item," says Maher. "Many consumers don't know that, and they wind up paying a great deal extra."

Tip-off: Unfortunately, you may not wise up to this scam until after the fact. Your best protection is to get a detailed written estimate of all parts and labor before you commit to anything. That way, if you get a second opinion, you'll be able to directly compare all the costs.

THE OLD BAIT AND SWITCH

Rip-off: A low-price deal turns into a big-ticket boondoggle. Bait and switch has a time-honored place in the hearts of mendacious mechanics. In the early 1990s, Florida regulators shut down a chain of repair shops that lured customers with $9.95 transmission tune-ups. Instead of saving about $25 off the normal cost, customers ended up with fat bills for fictitious repairs. One was charged $400. "These shops suck you in with an amazing deal and then take your car apart," warns Richard Shedd of California's Bureau of Automotive Repair. "So you're a captive audience when they tell you that it's a lot worse than they thought."

Tip-off: Let your sniffer tell you whether a deal smells too good to be true. And while price is a concern, don't focus on that alone. Mechanics--even thoroughly honest ones--differ widely in their skills, a consideration that's becoming more critical as cars get more complicated.

Hawaii and Michigan are the only states that require repair shops to prove they employ qualified technicians. In other states, it's up to you. Start by getting references from friends, since a personal relationship is often the best guarantee against rip-offs. If that doesn't steer you to a good mechanic, find one of the 4,500 garages approved by the American Automobile Association. The nearest AAA office can refer you, and you don't have to be a member to ask.

Mechanics certified by the National Institute for Automotive Service Excellence (ASE) are another option. A note of warning, however: A garage can post an ASE certification sign even if only one of its mechanics has received certification. What's more, that mechanic may be certified in just one of the ASE's eight areas of expertise. So make sure the mechanic you use has passed the appropriate test.

HIDDEN WARRANTIES

Rip-off: Car makers tell dealers that they will pay them to fix problems--but nobody tells you. An estimated 500 "hidden warranties," from all car companies, are in effect at any one time. The warranties cover defects the car maker has discovered, involving anything from flaking paint to failing engines. Dealers are usually notified through technical service bulletins (TSBs) from the manufacturer. There is no federal law requiring that car owners be notified, however, and only four states--California, Connecticut, Virginia and Wisconsin--have such laws on the books. So double-dipping dealers can charge unknowing consumers for repairs that should be free.

Tip-off: You won't know unless you ask. If you experience car troubles that your warranty wouldn't ordinarily cover, ask your dealer if is there is a "goodwill program" or "policy adjustment" on the problem. "As a rule, most dealers are cooperative about such requests, especially if you use the industry lingo," says Clarence Ditlow, co-author of Little Secrets of the Auto Industry ($16.50 from the Center for Auto Safety, 2001 S St. N.W., Washington, D.C. 20009).

The National Highway Traffic Safety Administration operates a hotline for information on safety-related warranties and recalls (800-424-9393). You can also write to the Center for Auto Safety (address above). Include a description of your problem, the make, model and year of your car, and a self-addressed envelope with 55' postage; in return you'll get a list of service bulletins for your car.

A TON OF PREVENTION

Rip-off: Needlessly fixing something before it's broken. Overzealous preventive maintenance has become a common form of car shop chicanery. For example, you're told your shocks are fine now but could go at any time. "It's like somebody telling you to change the light bulbs in your house before they burn out," says Shedd.

Tip-off: To be sure, some worn-out parts, such as radiator hoses and timing belts, need to be changed before they fail. But in many cases, your car's warning systems will alert you in plenty of time. A lit dashboard indicator or high-pitch squeal coming from the front end of your car are omens to be heeded. If you have any doubts about a mechanic's diagnosis, get another opinion. In addition, tell the mechanic you'd like to have the worn part after it's replaced. Although you may not know the difference between a worn brake pad and a new one, just asking shows you are not a complete sucker. Says Allen Wood of California's Bureau of Consumer Affairs: "Dishonest mechanics don't rip off every customer--only the ones they think are easy to fool."

Reporter associate: Luis Fernando Llosa