Confessions From the Dealership Service Department
How Consumers Are Often Overcharged for Repairs
http://www.edmunds.com/car-care/confessions-from-the-dealership-service-department.html
The Dangers of "Upselling"
Let's say that someone comes into the dealership for a simple oil change. They immediately become a target for the service department to "upsell" them as much additional work as possible. First of all, the advisor will ask how many miles are on the car. If there is close to, for example, 20,000 miles, they will say, "Well, you're just about ready for your 20,000-mile service. Here's what we recommend." They then whip out a sheet with a laundry list of services that are offered for a package price. But if you look at what is actually done to the car, it is just inspections or fluid checks and fills.
When you start getting more miles, the service writer will say, "We're going to do all services recommended for that mileage, but we'll also check for other problems." So you agree to a "full inspection," which is one of the biggest scams. Later in the day the service writer will call and say, "Everything looks OK but we recommend you have some other work done: transmission fluid, air-conditioning, differential fluid." By the way, most manufacturers don't recommend ever changing the diff fluid. So you go in for an oil change and end up dropping $600.
Dealerships don't profit on extensive operations like replacing engine blocks, transmissions or other large components. These require expensive parts, and the mechanics take longer to finish them. So while you pay a lot for these operations, the service department doesn't make much off them. With the smaller operations, on the other hand, you don't pay as much, but they're making a very high percentage of profit.
In one case, I looked at the dealer-recommended service and compared it to the owner's manual — it had almost doubled the service frequency from the manual. That's true of parts, too. The prices of most parts you buy through a dealership are doubled.