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From Bob Irish in the Wealth Builders Club: For an insider’s view of the auto repair business, I sat down with Dave Clayton.
Dave owns Arnst Ocean Automotive in Delray Beach, Florida. He’s helped Tom avoid getting ripped off. And I’ve taken my own cars to him for 20 years.
In the excerpt below, Dave explains why you may save money with an independent mechanic over a dealer repair shop…
Bob: How do the dealership mechanics get paid?
Dave: Most of the big chains use a commission system. Either salary plus a commission or full commission.
Bob: The mechanics work on commission?!
Dave: Oh, yeah. The service manager’s paid that way, too. And the guy in the parts department. At most dealerships, about the only one not paid a commission is the guy who parks your car.
Bob: Doesn’t that result in a conflict of interest?
Dave: It can. The more work they do, the more money they make. Working on commission gives them an incentive to pad the bill. And then there’s the guy who’s honest… but he’s hungry. He’s got a family to feed. So he’s more aggressive in his sales tactics than someone on straight salary.
Reeves’ Note: Bob’s full Wealth Builders Club interview includes the four questions you must ask to ensure you don’t get ripped off at the garage—regardless of whether it’s a dealer or an independent shop. You can find it all inside Wealth Stealers Essay No. 14: “Find a mechanic you trust.”