Understanding Vehicle Repair Charges at a Dealership: What You Need to Know

When you get work done on your vehicle at a dealership, do they charge for everyday it sits on the lot? The answer is usually no, but there is a lot more to consider regarding the charges and fees associated with vehicle repairs.

Understanding Dealership Charges

Dealerships typically do not charge a daily fee for a vehicle sitting on their lot while repairs are being made. However, they do charge the list price for every part used during the repair process. Additionally, they closely follow a flat rate schedule when it comes to the time spent on repairs.

It's important to understand that these fees incorporate more than just the cost of the showroom and facilities. Dealerships also have to account for the hefty management expenses. Therefore, while there might be no direct daily storage fee, the overall cost of repairs can add up quite significantly.

Fees and Schedules: What You Need to Understand

Dealerships have a standardized schedule that lists each job and the time it takes to complete it. However, the key issue is who is billing the time. Some dealerships display a sign stating that if a car is not collected within a certain period after repairs, storage fees will be applied, and after a certain time, the car may be sold at auction.

Preventive Measures and Bottom Line

As a shop owner, I started charging an upfront fee when the cost of work exceeded the value of the car. This was because in most cases, customers would authorize repairs but never pick up the car, resulting in me owning a car I couldn't sell and use to recover my labor costs. It is crucial to read the repair order before signing it, as it is a binding contract.

Storage Fees and Incomplete Repairs

If you are being charged for a vehicle sitting on the lot, it would be unusual unless you had been notified that the work had been completed satisfactorily, but you had failed to collect the vehicle within a reasonable period. The responsibility for incomplete repairs due to awaited parts does not lie with the repairer unless they had previously agreed to supply the parts, which they failed to do.

For example, if a repairer had agreed to source and fit parts from another vehicle to avoid the cost of new parts, they would be within their rights to charge for parking space while waiting for the supply of these parts. The specific situation depends on your relationship with the repairer and their patience.

Conclusion

The key takeaway is to be aware of the charges and fees involved when getting your vehicle repaired at a dealership. Always read the repair order carefully, understand the fee structure, and communicate any issues or delays early on. This can help prevent misunderstandings and ensure you don't incur unnecessary costs.