Don't Get Scammed by Your Mechanic

It Costs How Much? How To Prevent The Top Five Most Expensive Repairs
by Tom Torbjornsen

Introduction

Here is one of your worst nightmares if you are an average American working hard to gut out the Recession with one car: You rely on your car or truck for your livelihood, either as a working vehicle or your only option to get to your job. You are just getting by, and can't afford new wheels if the current car or truck dies.

Then, like a punch to the gut, the mechanic tells you your master cylinder is shot, the transmission is a goner, or worse. The bill? It's in the thousands.

There are times when such calamities are going to happen. But there are measures we can take, and should take, that can help avoid the worst case scenario.

Last month CarMD Corp conducted a study and compiled the findings into what they called their Vehicle Health Index. CarMD is a device that plugs into your vehicle's under-dash OBDII data connector, and then downloads vehicle repair data, letting you know what's wrong with your car. Among the findings of the study were the top fifteen most expensive vehicle fixes in the US. Here at AOL Autos we decided to explore the top five most expensive repairs in depth in an effort to give you a tips on how to avoid these common pitfalls.



5. Replace cylinder head assembly and spark plugs


Price: $3608.36

Make it stop! Doesn't anything cost less than $3K?: Cylinder head problems usually can be attributed to the root cause of overheating of the engine. Cylinder heads are typically made of aluminum, a metal that offers overall weight reduction, which is good for increasing MPG, and dissipating heat much better than cast iron. The problem with aluminum, though, is it's very unforgiving when it comes to being overheated. One little bad thermostat valued at $10 - $20 can result in repairs costing upwards of $3000!

Overheating happens as a result of a coolant leak, plugged radiator, stuck thermostat not allowing coolant flow or coolant that has been in the system too long and that has lost it's ability to absorb and carry away heat from the combustion chambers. When the engine overheats, either the cylinder head gasket burns and stops sealing the head to the engine block and/or the aluminum head/s warp or crack resulting in internal coolant leakage and loss of compression (engine power). To repair this, the top of the engine must come off and be refurbished or replaced depending on the extent of the damage; typically the spark plugs are replaced when a repair operation of this nature is done. It's a hideously expensive job.

What you need to do? Again, this is another repair that can be avoided by scrupulously adhering to the scheduled change of oil and coolant, as well as timely replacement of a thermostat.

4. Replace camshaft & lifters


Price: $3077.74

Argh! People are keeping their cars much longer today than days of old. The average car on the road today is between 10 and 12 years old. This means that the vehicles are racking up higher and higher mileage every year. Over time, camshafts and lifters, which are made of metal, wear out, thus the need for replacement at high mileage. The lubricants of today are much better than they used to be, therefore offering better protection over time.

What you need to do: To achieve maximum engine mileage follow the service schedule for oil drain and filter replacement intervals. You may consider starting your new-car engine out on a diet of high quality synthetic motor oil, which is much tougher than petroleum based motor oil. Typically a high grade synthetic motor oil such as AMSOIL (more info on line at: www.lubedepot.com) or Mobil One will go double the mileage of petroleum based motor oil.

3. Replace transmission assembly and reprogram ECM


Price: $3699.34

Gadzooks! Automatic transmissions have their own maintenance schedule for fluid and filter replacement. If you don't follow it and leave fluid in the unit for too long, heat and friction buildup will result in transmission failure. If the transmission needs replacing, thi will also involve reprogramming of the Engine Control Module or Drivetrain Control Module.

What you need to do: The transmission fluid typically needs to be flushed and replaced every 35,000 miles. Keep the transmission fluid and filter clean and fresh according to the aggressive maintenance schedule I mentioned above and you will realize trouble-free operation of your transmission for a long time.

2. Replace hybrid inverter assembly. Replace inverter assembly w/ converter


Price: $7391.57

Ugh. Inverters and voltage converters are devices used specifically in hybrid powertrains. Before we explore what we can do to prevent failure of these devices, let's first look at what they do to gain a better understanding of the nature of the beast.

An inverter converts DC (Direct Current) electrical current from the batteries to AC (Alternating Current), which is required to power the electric motor/s of the hybrid powertrain.

A (voltage) converter is a device that changes the amount of voltage (either AC or DC) of an electrical power source. These devices are used to take low voltage and step it up to high voltage for heavy duty work in a high power application where only a low power source is available, and conversely can be used to reduce voltage from a high output source for a light load application.

Inverters and voltage converters operate at high temperatures because of the use of resistors & semi-conductors, which results in high electrical resistance and thus, heat. Typically such systems incorporate the use of a dedicated cooling system including the use of a radiator with pump driven liquid, a fan and/or heat sinks and aggressive ventilation. For this reason the air intake in the front grille of the vehicle must be kept clean of organic debris and unencumbered so maximum airflow is achieved.

What you need to do: If your particular hybrid vehicle has a dedicated cooling system for the hybrid system, do not neglect servicing it according to the manufacturer's suggested maintenance schedule. As a mater of fact, I would err on the side of aggressive maintenance practices and service it according to the severe maintenance schedule. If your vehicle's hybrid cooling system is part of the engine's cooling system, again, err on the aggressive side (severe schedule) of maintenance practices, at the listed replacement prices. Seriously, a few extra cooling system flushes seem trivial in cost as compared to a new inverter assembly, wouldn't you agree?

1. Remove cylinder and inspect for faulty components, replace as necessary.

Price: $8216.97

Ouch. Specifically, this area refers to engine damage, and major engine work or outright replacement. Typically, mechanics see engines fail due to long term wear and neglected maintenance practices. For instance, when oil changes are let go too long between drain intervals and cooling systems are allowed to go too long between flushes and refills, engines tend to develop internal wear from increased heat and friction. Cylinder walls are lubricated by the piston stroking up and down and distributing lubrication on the cylinder walls. When oil is left inside the engine too long, it breaks down and stops lubricating properly, hence heat and friction buildup and ultimately internal failure resulting in massive repair costs. Additionally, leaving coolant in the engine too long results in the coolant losing its ability to absorb heat and prevent rust and scale buildup, which increase engine operating temperatures and friction and thus, increased engine wear and ultimately, failure.

What you need to do: Practice vigorous maintenance, according to the severe service schedule and you will realize greater engine longevity.

Bottom Line

These five problems are the worst you will face without taking the step of replacing the whole car. And, of course, depending on the age of your vehicle, total replacement is going to be a real option. The best way to avoid them, and keep your car on the road is to pay attention, be organized and replace fluids and small parts on a scheduled basis according to the manufacturer guidance. A few hundred dollars may be a lot to some people, but it's a lot less than all of these bad-news repairs.

'Til next time...Keep Rollin'

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Hidden fee could add thousands to price of your car

Hidden fee could add thousands to price of your car
by Jeremy Rogalski

HOUSTON -- The I-Team obtained insider dealership documents which show how a hidden fee could add thousands to the price of a car.

Duane Overholt, a former auto dealership insider, calls it the best kept secret in the world.
“The consumer can't see it, can't feel it, can't touch it, doesn't see anything that has it,” Overholt said. “But they’re paying for it.”

It’s a secret that may be costing you thousands of dollars, and Overholt said he knows it well because, as a sales and finance manager, he did it for years.

"Ripped off customers, cheated them, lied to them. I was a liar, thief and a crook," Overholt said.

It's all part of a profitable game played by some car dealerships and lenders, and one that is most likely to happen to consumers with spotty credit, no credit or a checkered credit history. The problem is, those consumers rarely get told about it.

But in Shawn Henderson’s case, someone slipped. While buying a used Hyundai sedan at a local dealership, he said he overheard the sales and finance managers talking about a fee.

Henderson: "It was going to cost them $2,000 to get me financed."

I-Team: “To get the loan through.”

Henderson: “Yeah.”

But when it was time to sign the dotted line, Henderson said his paperwork never mentioned the two grand.

I-Team: "Was it ever disclosed to you that you were paying this fee?"

Henderson: “No."

But the I-Team has learned it's happening across the nation—banks and lenders charging dealerships thousands of dollars just to approve a loan. It's called an acquisition fee, and it's not supposed to be passed on to customers. But we obtained insider documents showing that you are footing the bill, without ever knowing it.

"The banks are saying to the dealer, there's going to be a bank fee for us to do business with you. You've agreed as a dealer not to charge that against the transaction," Overholt said.

But he said the banks are kidding themselves about that agreement. Overholt now fights against auto fraud as a consumer advocate.

"They (lenders) know how the auto industry works and ultimately how the dealer is going to charge it back to the transaction, he has to," Overholt said, in order to keep profits up.

The internal dealership documents the I-Team obtained show for a Ford Focus priced at nearly $22,000, the lender charged nearly $2,900 just to approve the loan.

Who paid for it? The customer.

Another deal, a $21,800 Ford Ranger, carried a $4,200 fee passed on to the customer. And a $34,000 Ford Edge we found topped them all. The buyer paid a whopping $7,500 acquisition fee.

So who sold those cars? Lone Star Ford located in the 8400 block of the North Freeway.

I-Team: “Why don't you tell consumers about these fees?’

Lone Star Ford: “You’ll have to talk with our corporate office out of Charlotte.

I-Team: “Do you think consumers should know?”

I-Team: “You'll have to talk to our corporate office in Charlotte.”

Lone Star's corporate office later told us it had no comment. But the I-Team has discovered another problem.

“The banks want the cake and ice cream too," said Overholt.

What's our former insider talking about? The car deals the I-Team highlighted were already financed at a hefty 18 percent interest rate. But we asked Certified Public Accountant Bob Martin to do some math, and hypothetically factor in the acquisition fee.

"If you add this extra layer, if you add this extra acquisition fee, regardless of what the terminology is, you're in effect paying a higher interest rate," said Martin.

Just how high? Martin said the Ford Focus would have jumped from 18 to 25 percent interest. The Ranger pick-up? From 18 to 28 percent. And the Ford Edge would have nearly doubled, from 18 to 35 percent interest.

However you consider it, someone is making money. In the cases the I-Team highlighted, it's a big-time industry player based in Dallas. Santander Consumer USA and its subsidiary Drive, does $25 billion in loans nationwide. It's something that lets the company's CEO live large in an $11 million mansion, complete with its own baseball field, soccer field, even a water slide, and oodles more on the inside.

The I-Team traveled to Dallas to visit Santander USA’s corporate office. Company attorney Raymond Scott met us in the lobby.

I-Team: "I'm wondering, why don't you disclose these fees to consumers?”

Scott: “Can I ask you to please turn off the camera.”

I-Team: “We'd rather not turn off the camera, can I ask you a question about these fees?”

Scott: “No you cannot, can I ask you to please leave the building."

So where does that leave car owners? Is this practice legal?

"I believe it can be under the way the law is written," said Rudy Aguilar with the Texas Office of Consumer Credit Commissioner, which regulates auto-finance transactions.

Aguilar: "There is specific law that says, first of all, that doesn't have to be disclosed.”

I-Team: “It doesn't?”

Aguilar: “No sir, and that is not finance charge.”

I-Team: “That seems to put the consumer at a disadvantage, big time.”

Aguilar: “It does.”

And consider this. Even if the fee is being added to the car, drastically inflating its price, Texas regulators don't have a problem with it.

Aguilar: “Well, they agreed to a price to purchase the vehicle."

I-Team: "So, if the consumer is dumb enough to pay this overinflated price and he signs the dotted line, S.O.L?”

Aguilar: “I would not put it in that sort of harsh terms."

I-Team: “But it's not a level playing field is it?”

Aguilar: “It can be a situation where it's not, correct."

Meanwhile, a spokesperson for Santander Consumer USA later told the I-Team by phone that the majority of the company’s clients have less than perfect credit, and the acquisition fees are a way to cover that riskier loan. The company also said it is providing a needed service, because many customers could not get financing otherwise.

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