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Car Makers Used Software To Raise Spare Parts Prices (engadget.com)

An anonymous reader writes: Ever had the nagging suspicion that your car's manufacturer was charging outrageous prices for parts simply because it could? Software might be to blame. Reuters has obtained documents from a lawsuit indicating that Jaguar Land Rover, Peugeot, Renault and other automakers have been using Accenture software (Partneo) that recommended price increases for spare parts based on "perceived value." If a brand badge or other component looked expensive, Partneo would suggest raising the price up to a level that drivers would still be willing to pay. It would even distinguish parts based on whether or not there was "pricing supervision" over certain parts (say, from insurance companies or focused publications) to avoid sparking an outcry.

276 comments

  1. this is why... by ooloorie · · Score: 1

    This is why you look at car repair cost estimates before you buy your car, and use aftermarket parts when you can.

    1. Re:this is why... by greenwow · · Score: 1, Informative

      Then no one would ever buy a Honda.

      Also, companies charge different prices for the same part depending on which model it is for. A friend was a moderator at corvetteforum.com, and there were several parts that cost less if you ordered it for a Cavalier versus a Corvette. My friend had trouble with water leaking into his door after someone broke into his car, and he went through several power window switches. IIRC, the part for the Cavalier was half the price but the same exact part.

    2. Re:this is why... by AlanBDee · · Score: 3, Insightful

      Are Honda's expensive to maintain? Mine has seemed fairly reliable. As I look at my spreadsheet there's only a handful of the costs that are replacement parts: 3% of the total cost of the car. (not including regular maintenance like a timing belt changes)

      As I compare it to the cost of our 4Runner it is more expense; The Accord costing about $270/mo vs $191/mo but we've only had the Accord for 8 years vs 15 years for the 4Runner. Check it out yourself if you're curious: https://docs.google.com/spread...

      BTW: this is what it looks like if you try to "drive the car until the wheels fall off".

    3. Re:this is why... by HornWumpus · · Score: 1

      What? cite? Hondas are cheap to keep. Granting they were better 10+ years ago, true for all brands.

      You appear to own a generic motors car...and you talk shit about Honda? Seriously?

      On topic: They are talking about limey and frog cars. I have no sympathy for the owners of such vehicles. Stupidity should be painful. Morons with money are the fat of the land and should be exploited for all they're worth.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    4. Re:this is why... by JMJimmy · · Score: 5, Interesting

      A while back, Toyota claimed I needed a new exhaust pipe for my Echo - $2,900 for the part alone. Quote from a reputable 3rd party repair shop: $400 including labour. It was just a bent pipe after all.

      Final cost? Free. I took it into a repair shop and he just welded over the holes, used old wire hangers. It took him so little time he didn't bother charging me.

    5. Re:this is why... by houghi · · Score: 1

      That is all good and well, buty most people are unable to do so. Just like when most people find an issue with some Open Source Software (e.g. Firefox or Chromium or anything else) you can say "Well, solve the issue and then do a build and you can even do feedback so other will be helped.

      In reality that is not a solution. I am sure that if I where to try and change my own oil, let alone do an actual repair, I would need to buy a new car.

      And I could go to some non-brand garage, but I have no idea if they are ripping me off either. Do I actually NEED that oil change? I have no idea.

      So aftermarket parts is a no-go for me. That only leaves the data of car repair cost estimates. With the non-knowledge, I would have no idea how acurate things would be.

      If I have an issue with my car, I should be able to go somewhere and not be ripped of, just as if a car repair shop should not be ripped off when he has an issue with his PC. The time of the BOFH excusae generator is long over. (The stories are still great.) Charging because people do not understand what you do and/or why should be forbidden, no matter what.

      --
      Don't fight for your country, if your country does not fight for you.
    6. Re:this is why... by pr0fessor · · Score: 1

      I've seen this the parts for some cars are just a standard parts that fit multiple models but if it's marketed for a more expensive car then it's way more expensive although it's the same part... you have to look at the interchangeable parts list or you might get screwed.

         

    7. Re:this is why... by Anonymous Coward · · Score: 0

      That 4Runner does not have a lot of maintenance on it. In Canada, the oil change and several other service intervals is at least twice as frequent as yours. Your current tires seem to last longer (in years, not distance) than most manufacturers recommend too. You seem to need few brake services.

    8. Re:this is why... by geekmux · · Score: 3, Insightful

      This is why you look at car repair cost estimates before you buy your car, and use aftermarket parts when you can.

      Then no one would ever buy a Honda.

      Uh, let's keep in mind that only 10% of the automobile-driving population still knows how to use a wrench under the hood, so the cost of maintenance is essentially a non-factor. They're all expensive to maintain or repair because the overwhelming majority of car owners are paying someone else to do the maintenance.

    9. Re:this is why... by ooloorie · · Score: 1

      Then no one would ever buy a Honda.

      Because they are so cheap? Honda is one of the least expensive brands to maintain. Expected maintenance costs are the product of failure rate and parts cost.

      Many people don't care about maintenance costs anyway; obviously, those people don't need to look.

    10. Re:this is why... by Anonymous Coward · · Score: 0

      My mid-00s Civic has been supercheap to maintain since new. It's why I bought it.

      I moved over from a horrendous European brand.

    11. Re:this is why... by HornWumpus · · Score: 2

      You are suffering from learned helplessness. Fix yourself. Change your oil, once in your life, anybody can do it. Watch a Youtube video. Yes, your time is worth more, the knowledge is worth still more.

      You don't have to be a mechanic to know you've gone 5k (10k for synthetic oil) miles and need an oil change. That's a tell, you have mentally checked out and 'punted' to your mechanic. Do you also ask your barber if you need a haircut? Do you ask Microsoft if you should upgrade to the latest Windows? Intel if you need a CPU upgrade? Stock broker if you should move your holdings around? Shyster if you should sue someone (for $5 in damage)?

      You have to be a not incompetent shade tree mechanic to find an honest professional mechanic. If you know nothing, you are in the position of the PHB counting lines of code. Best option is a reference from a mechanic you can trust, but I've observed that mechanical incompetence runs in social circles. If you can't wrench, the odds are high that _nobody_ you know can.

      First sign a mechanic isn't completely honest: Works for a stealership. He knows that even if he's completely honest, the rest of the process is crooked, and he's OK with that (e.g. He replaces good parts, cause that's what the 'writer' wrote.)

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    12. Re:this is why... by ooloorie · · Score: 1

      That is all good and well, buty most people are unable to do so

      Seriously? "Most people" can't be bothered to look at expected repair costs or to find a well-reviewed independent repair shop on Yelp?

      And I could go to some non-brand garage, but I have no idea if they are ripping me off either. Do I actually NEED that oil change? I have no idea. So aftermarket parts is a no-go for me.

      So you value your own time more than the money you could save by being a more informed buyer.

      I am sure that if I where to try and change my own oil, let alone do an actual repair, I would need to buy a new car.

      And why should I pay for your choice to remain ignorant?

      Charging because people do not understand what you do and/or why should be forbidden, no matter what.

      Quite the opposite: that is the essence of a free market. Information itself is expensive. If we did what you say you want to do, government would have to set prices and enforce them, which is costly, inefficient, and usually corrupt. It is far better that buyers actually get a choice: you can spend the time informing yourself, or you can pay a premium for overpriced parts.

    13. Re:this is why... by Rastl · · Score: 1

      You are suffering from learned helplessness. Fix yourself. Change your oil, once in your life, anybody can do it. Watch a Youtube video. Yes, your time is worth more, the knowledge is worth still more.

      In theory I know how to change the oil in my car. In practice it's not economical or feasible. My apartment complex frowns on people doing car repairs in the parking lot. I don't have a decent jack to lift the car. I don't have the tools to do the work. Those are all factors to take into account.

      So while yes I could change my own oil it's more cost effective for me to take it to the mechanic next door and have them do it along with an inspection.

    14. Re:this is why... by HornWumpus · · Score: 1

      How can you know your mechanic is honest?

      Assuming you got lucky, how can you find another?

      If you don't know how badly you are being ripped off, you can't know if it's cost effective.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    15. Re:this is why... by Anonymous Coward · · Score: 0

      What else is being serviced with those MAF Sensor entries? Are you replacing it or having it done by a mechanic?

    16. Re:this is why... by Anonymous Coward · · Score: 1

      LMAO. DID you just compare a Honda to a Cavalier. Here'a clue straight from Blue's Clues. Go to a parking lot.

    17. Re:this is why... by Anonymous Coward · · Score: 0

      Firefox? Firefox? This is it. It is official. News for Corporate Whores, the nerds have left the building.

    18. Re:this is why... by thomn8r · · Score: 1

      A friend of mine has a Ferrari; an alternator is $1200 (IIRC), but is the exact same part from a John Deere tractor is $90

    19. Re:this is why... by novakyu · · Score: 1

      So you find a mechanic that you can trust who'll charge a reasonable rate for his labor (and you never take it to a dealership to get it repaired).

      Depending on how much you get paid, it's not that much more cost-effective to fix it yourself, once you factor in the (opportunity) cost of your own labor.

    20. Re:this is why... by AlanBDee · · Score: 1

      I run synthetic oil so I run it for longer then is technically recommended. The last set of tires on the 4Runner lasted way too long. There was still plenty of tread on them when I replaced them but they were just getting uneven and shaky.

    21. Re:this is why... by AlanBDee · · Score: 1

      Both times it was done be a mechanic. In 2008 it looks like the brake fluid and coolant was flushed as well. It was probably done at the dealer. In 2017 there was an air filter done as well.

    22. Re:this is why... by Anonymous Coward · · Score: 1

      I find it difficult to believe that any part for a John Deere tractor could be had for as little as $90.

    23. Re:this is why... by Tuidjy · · Score: 1

      The article you linked is very interesting, but very hard to believe.

      For example, Volvo is rated as the fourth most expensive brand to maintain, at more than 12K per 10 years. But in the top twenty most expensive to maintain models, Volvo does not appear even once, while Audi, ranked fifth, shows up a few times. Not only that, but the list of specific models drops under 12K/10y, without Volvo appearing at all. You cannot have an average of $12,000 for maintenance if all your models are below $11,200.

      And there are two more things that conflict with my understanding of mathematics, without even going into those which conflict with my anecdotal evidence.

      I would not rely on that article for much.

      Toyotas are easy to maintain, though. My 29 year old Supra has been the cheapest car to maintain of the five my family owns (in the few years since I rebuilt the engine) and has the highest mileage in those five years. The other four are an Audi, a Volvo, a Honda and an Acura, in descending order of expenses.

      --
      No good deed goes unpunished...
    24. Re:this is why... by Anonymous Coward · · Score: 0

      Do I actually NEED that oil change? I have no idea.

      How about you spend all of 5 minutes, look up the service interval for oil changes and then..you know exactly how often you need an oil change. This isn't hard..at all. My car needs them every 5000 miles, so I just do them on multiples of 5000 miles. Not hard to remember.

      Hell most cars these days have an oil change reminder on the dash for you.

      If I have an issue with my car, I should be able to go somewhere and not be ripped of, just as if a car repair shop should not be ripped off when he has an issue with his PC.

      Good sir, I have a bridge, its in Brooklyn. Would you like to buy it?

    25. Re:this is why... by Tuidjy · · Score: 1

      My apartment complex frowns on people doing car repairs in the parking lot. I don't have a decent jack to lift the car. I don't have the tools to do the work.

      I wouldn't advise you to do the work yourself unless you are genuinely curious, or think you'd enjoy it. For example, I love working on my Supra, but hate, HATE, HATE working on my wife's Audi.

      But, if you really want to try it, many auto parts stores, at least in California, will lend you tools and a workspace... for a price, or if it is something minor and bays are available, for a wink and nod.

      --
      No good deed goes unpunished...
    26. Re:this is why... by Actually,+I+do+RTFA · · Score: 1

      You are suffering from learned helplessness. Fix yourself.

      The world's complex. There are infinite skills. People should be able to handle an emergency (e.g. change a tire, add more fluids if a leak occurs on the road). But learning to cook is probably a better use of your time if you're just trying to accumulate vital skills. And there are other skills after that.

      If you want to get into cars, even if it's just a little bit, by all means start by changing your oil. But if you're not interested, do whatever. Just do something.

      --
      Your ad here. Ask me how!
    27. Re:this is why... by godel_56 · · Score: 1

      My 29 year old Supra has been the cheapest car to maintain of the five my family owns (in the few years since I rebuilt the engine) and has the highest mileage in those five years. The other four are an Audi, a Volvo, a Honda and an Acura, in descending order of expenses.

      There's no point in comparing a 29 year old car to anything modern. They're from different worlds.

    28. Re:this is why... by Anonymous Coward · · Score: 0

      10% is a rather generous estimate. I think 2% is even on the high side.

    29. Re:this is why... by Tuidjy · · Score: 1

      Performance and feature wise, they are quite comparable. Modified, 400+ horsepower, manual transmission, turbo charger, hydraulic suspension, aftermarket inter-cooler and downpipe, - it's true for both my Volvo S60-R and my Toyota Supra. And the mileage per year of the Supra is nearly double.

      Of course, the Volvo was purchased in 2004, which is modern only for an old fart like me. I have been keeping up to date with the industry (I work for an aftermarket automotive manufacturer) and hardware has not changed all that much unless you are talking about electromotive, auto-pilot, etc. systems.

      The Toyota Supra and Volvo S60-R was both high tech and somewhat experimental when they came out, and they both pushed the envelope quite a bit. That they are cheaper to maintain than a pedestrian car like the Audi A4 is telling.

      --
      No good deed goes unpunished...
    30. Re: this is why... by maestroX · · Score: 2

      Cars made in the last decade are increasingly prone to failure due to environmental regulations which make engine tolerances narrow. A V8 can take a lot of mishap whereas 1.0l 100bhp cannot. That said, Honda is one of the best engine builders despite pricey parts.

    31. Re: this is why... by maestroX · · Score: 1

      Get a quote from multiple mechanics. Talk to friends/colleagues, search the net. There's a lot to learn without needing to know how to do an oilchange. The best tool is knowledge of People.

    32. Re:this is why... by Anonymous Coward · · Score: 0

      I don't know about learned helplessness. A car, or car engine and transmission, is several thousands of dollars to replace. There has to be a risk assessment at some point. Do you trust a business that gets a lot of business, or do you spend weeks or months trying to fix an engine, potentially learning the hard way about changing the oil (getting the nut on the bottom of the the oil pan too loose or too tight, creating an oil leak, and then not catching it in time before you've done major damage. Not everybody parks on concrete.)

      It isn't just being able to follow instructions, but being able to tell what symptoms are signs of a bigger problem. Its kind of why we have doctors and other medical professionals to diagnose our own bodies. At the high costs of ownership and maintenance, particularly in areas where an automobile is a necessity, there should be some form of malpractice laws for auto mechanics.

    33. Re:this is why... by avandesande · · Score: 1

      Yeah we used this trick buying Porsche parts, much cheaper from Volkswagen...

      --
      love is just extroverted narcissism
    34. Re: this is why... by Anonymous Coward · · Score: 0

      Bmw and mini do the same. The dealer demands a VIN before selling you parts.

    35. Re: this is why... by bogie · · Score: 1

      That"s not what my research shows. Sound like more like a made up anti-environmental myth than anything. Brands that were less reliable previously have had to step up their game and produce more reliable cars that get better mileage. IMHO forcing higher mileage targets has forced an explosion of innovation and super powerful fuel efficient cars. Hell look what the super cats are doing now. The only place it's gone off the rails is Driver distraction and infotainment systems. But hopefully within the next five years things will improve there.

      --
      If you wanna get rich, you know that payback is a bitch
    36. Re:this is why... by Anonymous Coward · · Score: 0

      Try working on a Mercedes - you'll need an entirely new set of tools.

    37. Re: this is why... by Anonymous Coward · · Score: 0

      Totally. This article should be titled 'computers now used to apply the same pricing logic as humans have been for decades'. Not really a suprise and i find it hard to think this new. Perhaps 'car company was sold expensive software to do the same work as the spreadsheet it replaced. Haha.'

    38. Re:this is why... by angel'o'sphere · · Score: 1

      once you factor in the (opportunity) cost of your own labor.
      Someone who is working from 9:00 - 17:00 or is a burger flipper, has no opportunity costs, because the time he is not working, he has nothing to work and nothing to earn and no opportunity costs.

      --
      Cost free eBook I read (by iBook/Kobo/Amazon/ObookO/Gutenberg etc.): "The Green Odyssey" by Philip Jose Farmer.
    39. Re: this is why... by Lothsahn · · Score: 1

      My Honda Odyssey cost me nearly $7k last year, from 120k-150k miles. Timing belt tensioner is hydraulic and failed, so I needed a timing belt service ($1k) only 30k miles after the previous belt. Also had the alternator fail which fried the AC compressor stator coil ($10)... But you can't replace that without draining the freon and removing the compressor so then you might as well put a new one on... $1k. Also had the water pump go bad and an engine mount failed (they're known for bad mounts)... And again, it's hydraulic so it's ~$700 for EACH mount (instead of $40 for normal non hydraulic mounts). Add in a few other random failures and it's been a very expensive year. In short, the Odyssey failed just as much as my Chrysler Town and country, but every part was over 3x as expensive. It also cost 3x as much to purchase used (with 100k miles), so not worth it. I spent $18k total on my T&C for 100k miles, 8 years and $22k total on the Ody for 70k miles, 5 years. I just bought a used Chrysler to replace the Ody. It needed ALL new engine mounts, which cost $500 total, including labor... Nearly half the cost of a single Ody mount. I probably will never buy Honda again.

      --
      -=Lothsahn=-
    40. Re: this is why... by Anonymous Coward · · Score: 0

      Yeah... except for the fact that when I'm done with my office work I prefer to spend time with my childrens, not under the hood of my f...car.

    41. Re:this is why... by houghi · · Score: 1

      I am able to add oil, but change it? I would need a place to work. I park in a public treet. I woul then need the tools to do so. Then I would need to find a place to get the old oil out. Next I might need to put in the new oil. And all the while I hope I did not make any mistakes anywhere so my motor does not blow up, because I bought the wrong oil.

      I actually once tried to find information on how to change a light bulb. All the information I found was basically "Do not do it yourself. unless you know what you are doing, but if you still want to go on, here is how to do it." For some reason I had to take the whole lamp thing out and it was hard to access and hope the lights where still alligned at the end.

      To me the car was (at that time) very much needed, so risking to break things should be also included. If you have no idea what you are doing and just follow guides on Youtube, you just hope what you did is safe. If not: Darwin will take care of it. I have seen enough videos about replacing brakes that I understand how it works. Doing that myself and endangering others is a whole other matter.

      OK: Computer comparison: You could say to Granny to look up all about anti virus programs and hacking herself, or you could be a nice person and install the firewall for her. Then you explain some things on how to recognize spammers (how to top of the oil) and not only is she safer, you have less trouble resolving issues every day when it goes bad and I am receiving less spam because of it.

      And all that because you (or somebody else) did what they do best.

      --
      Don't fight for your country, if your country does not fight for you.
    42. Re: this is why... by Anonymous Coward · · Score: 0

      That's not because people have become less wrenchy over the years. They have become mor car-y.

    43. Re: this is why... by Anonymous Coward · · Score: 0

      When sellers become powerful enough, they will start doing all in their power to keep you from having a choice and/or FUDing you from making an informed choice.

    44. Re: this is why... by AlanBDee · · Score: 1

      That is a rough year and it's surprising because the Odyssey is generally a reliable car and is on the list of cars that often go over 200k miles. https://www.roadandtrack.com/n...

      I've always looked at reliability as the primary metric but haven't really evaluated the ownership cost. Sadly, most calculators I see that calculate the ownership of a vehicle always starts with a new vehicle. Any of us who actually bother to do the math will know that as expensive as your Odyssey was, it would have cost you more if you had bought a new one and sold it 5 years later. So even if you get a lemon and have to fix it up it's still less expensive then buying new. In the end, it might be less expensive to own a domestic vehicle even though it's not quite as reliable. A AAA membership isn't that expensive.

    45. Re: this is why... by geekmux · · Score: 1

      That's not because people have become less wrenchy over the years. They have become mor car-y.

      I'm forced to stand by my original statement, since I have no idea what in the actual fuck you're talking about.

      And yes, people have become less "wrenchy". They don't know, and they don't care to learn. It's beneath the average car owner, as evidenced by the latest tactic being offered by many manufacturers to include X years of vehicle maintenance in with a new car deal. Feeling pressure to throw in those kinds of deals says a lot about consumer know-how these days.

    46. Re:this is why... by dublin · · Score: 1

      This kind of parts cross referencing can save big bucks. I had a 1974 FIAT X1/9 in college, and rebuilt it enough to get a good feel for what it's parts were and looked like. Several years later, I bought a 1975 Ferrari Dino 308gt4, and a *bunch* of those parts looked familiar - turns out they were often the same.

      This was back in the pre-Internet days, so Italian car enthusiasts circulated and exchanged samizdata-like lists of part number crosses. One example of many: The thermostat switch was identical in the X1/9 and the gt4 (as verified by manufacturer markings), but the FIAT part was around $8.00 (in the late 80s), while the one for the gt4 was $80.00. Switchgear, door handles, etc. were likewise often identical, but sometimes, Ferrari parts were just freakishly cheap due to their inexplicable pricing: For a while in the 90s, it was bizarrely cheaper to buy new brake rotors for the gt4 than to turn the old ones! Although I sold the car a few years ago with most of its spares, I probably still have a box of rotors somewhere...

      --
      "The future's good and the present is nothing to sneeze at." - Roblimo's last ./ post
    47. Re:this is why... by dublin · · Score: 1

      That kind of gouging can lead to "interesting" repairs. I had a friend whose shop fixed a customer's Aston Martin Volante's cracked head with JB-Weld. (The car was only a few years old at he time.) He told the customer the repair might not hold, but the customer decided it was the only option when my friend told him the *raw casting* was $10,000 (the machined part was a lot more) and had to be ordered and shipped from England. So for $5.00 worth of aluminum filled epoxy and a few hundred dollars worth of labor, the Aston was back on the road. My friend doesn't know how long the repair lasted, but it was still doing fine when the customer sold the car a few years later...

      --
      "The future's good and the present is nothing to sneeze at." - Roblimo's last ./ post
    48. Re:this is why... by scdeimos · · Score: 1

      What? cite? Hondas are cheap to keep.

      Nope. No way. Not even.

      Honda MY17 CR-V Luxury. Cracked windscreen replacement quoted at AUD2,600 and you have to bring it to the dealer (Norris Motor Group trading as Northside Honda, Brisbane).

      Replacement windscreen replaced on-site in your office car park for AUD397 by Windscreens O'Brien.

      Honda's excuse was that "it requires specialised recalibration of the sensor for the automatic wipers."

    49. Re:this is why... by dcw3 · · Score: 1

      They were probably wearing unevenly because they were out of balance ("shaky").

      --
      Just another day in Paradise
    50. Re:this is why... by dcw3 · · Score: 1

      Reminds me of when my 2003 Infiniti FX45 headlight went out. The dealer told me that I needed a new ballast which would cost $700. I told him I'd strap a fucking flashlight to the hood before I paid $700 for a ballast. I found one online for under $200 and replaced it myself.

      --
      Just another day in Paradise
    51. Re:this is why... by dcw3 · · Score: 1

      You trust the review on Yelp? Seriously?

      --
      Just another day in Paradise
    52. Re:this is why... by ooloorie · · Score: 1

      You trust the review on Yelp? Seriously?

      Did I say I "trust" them? Like all reviews, you need to use your head in figuring out whether they are fake or real, and if they are real, what they are actually saying.

    53. Re:this is why... by HornWumpus · · Score: 1

      What kind of moron goes to a dealership for a windshield? Seriously, dealerships do _warranty_work_, that is all. If you act like a chump, they will treat you like a 'dealership service customer' AKA chump. 'Fat of the land', to be milked for all they are worth. That is a general fact, not brand specific.

      Bet you could have got it for half that at a glass shop on 'junkyard row'...I've been through the airport, all I know about Brisbane. All cities have a 'junkyard row' in my experience.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    54. Re:this is why... by dcw3 · · Score: 1

      Okay, it seemed implied in your comment. Wanted to make sure we didn't have to confiscate your geek card.

      --
      Just another day in Paradise
    55. Re: this is why... by Lothsahn · · Score: 1

      I definitely agree that the ownership cost was lower than buying a new one, but unfortunately the ownership cost was at least 50% higher than the equivalent T&C. The main reason is that while the reliability of my T&C and Odyssey were equivalent (I may have gotten a bad Ody), the repair costs for parts were much higher. Also, the initial purchase cost was dramatically higher ($11k Ody vs $4k T&C).

      In any case, it was what it was, but the primary factor I found was that domestic parts are dramatically cheaper than foreign ones. Fundamentally repair cost is (parts + labor) * reliability. If parts is 3x more expensive, then repair cost is higher unless the reliability is dramatically higher. Once you factor in the much slower depreciation of foreign cars, this means that buying used domestic can often be cheaper than used foreign, even though they're generally less reliable.

      A similar "expensive foreign parts" situation just occurred on my Nissan Leaf. The passenger occupancy sensor just failed, and Nissan wants $2700 for the sensor (plus labor & taxes). $2700 for what is essentially an electronic scale is... well, insane. That's more than I paid for the rebuilt transmission installed on my T&C.

      Keep in mind that the Odyssey is one of the least reliable models that Honda offers, according to Consumer Reports--not because the Ody is particularly bad, but because overall Honda is generally very good. In short, CR shows that the Odyssey is about as reliable as most domestic cars, whereas the rest of their models beat the pants off most domestic cars. Also, this was all just about costs--there's something to be said about the annoyance of having your car in the shop. Reliability has value outside financial cost.

      --
      -=Lothsahn=-
    56. Re: this is why... by WorBlux · · Score: 1

      Have the kid hold the flashlight, they might actually learn something useful in the process. At the very least a car isn't some magical black box with four wheels.

    57. Re:this is why... by WorBlux · · Score: 1

      Honestly, look at the oil and smell it. If it looks dirty/smells burnt, and the level is starting to drop, then it's time to change it. Checking fluids and tires everytime you fill up is a good idea anyways. Also read the owner's manual and you'll have a pretty good idea of when certain maintenance should be done.

  2. 2 entities to prosecute here. by Anonymous Coward · · Score: 0, Insightful

    1) The software company that implemented this feature.

    2) Each manufacturer that used it.

    Nice little price fixing app for the industry you have there. Maybe you need more government regulation.

    1. Re: 2 entities to prosecute here. by BronsCon · · Score: 2

      There's a huge difference between outlawing collusion and price fixing and letting the government control prices. Go find somewhere else to post your ignorance.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    2. Re: 2 entities to prosecute here. by Anonymous Coward · · Score: 1

      Except an individual manufacturer can't price fix all by themselves. And typically car parts aren't sold by multiple manufacturers, though there are exceptions. I doubt there's collusion on those exceptions, however.

      In other words, a manufacturer has every right to monitor market interest and set prices arbitrarily, especially in the pursuit of maximizing income.

      Price fixing only occurs when two or more manufacturers enter an agreement to effectively monopolize the market between them through price manipulation.

    3. Re: 2 entities to prosecute here. by Anonymous Coward · · Score: 0

      Yeah, like the Gov't can run anything efficiently. How many retard gov't leaches do you want to pay for?

      As most car guys know, most cars use off the shelf parts that are common across many models.

      Also most car shops get large discounts that will not be affected as they have contracts that cover prices.

    4. Re: 2 entities to prosecute here. by HornWumpus · · Score: 1

      How is this collusion? It's one company recognizing that it's customers are ego driven chumps and charging appropriately. If they call the aftermarket parts companies, then yes, slap the cuffs on them. Until then, it's SOP. Like using Newton's method to approximate a mathematical solution, they're just finding maximum profit.

      Is Rolex also guilty of collusion? They charge what the market will bear...ego driven purchasing decisions are usually bad ones.

      Am I also guilty of collusion? Are you? I don't think my clients are exactly proud of what they pay me, don't think they brag about it, but still.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    5. Re: 2 entities to prosecute here. by BronsCon · · Score: 1

      How is this collusion? It's one company recognizing that it's customers are ego driven chumps and charging appropriately.

      Actually, no, it's a group of companies all using the same platform to set their prices.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    6. Re: 2 entities to prosecute here. by HornWumpus · · Score: 1

      On incompatible parts, in the face of third party competition.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    7. Re: 2 entities to prosecute here. by BronsCon · · Score: 2

      If you believe what you just wrote, you would be absolutely amazed how often the difference between parts, even across vehicle manufacturers, is simply a model number and badge. A ton of parts are made by 3rd parties and sold to multiple car makers. If you read a bit more of the discussion on this article, you'll find numerous examples, but there is a fair bit of behind-the-scenes coordination to ensure that part numbers don't match (and aren't even similar) in these instances, even when part numbers for other parts do match (often despite being completely different parts) and can only be told apart by visual inspection or looking at the OEM badge on them.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    8. Re: 2 entities to prosecute here. by Barsteward · · Score: 1

      They should go after Uber too as its not any different to Uber surge pricing? I hate these nasty little tricks to get more money out of you and it could spread to lots of other things if not careful.

      --
      "The hands that help are better far than lips that pray." - Robert Ingersoll (1833-1899)
    9. Re: 2 entities to prosecute here. by Anonymous Coward · · Score: 0

      Why do you hate the troops you fucking commie ??

    10. Re: 2 entities to prosecute here. by BronsCon · · Score: 1

      Price fixing and collusion are, actually, already illegal... in case you weren't aware.

      --
      APK quotes people (including myself) without context and should not be trusted. Just thought you should know.
    11. Re: 2 entities to prosecute here. by dcw3 · · Score: 1

      It's one company recognizing that it's customers are ego driven chumps and charging appropriately

      Stereotype much? No, it means no such thing.

      --
      Just another day in Paradise
    12. Re: 2 entities to prosecute here. by dcw3 · · Score: 1

      Not the same. Demand v. supply goes up, so prices go up. That's not the case we're discussing in this article.

      --
      Just another day in Paradise
  3. That's how inventory theory works! by david.emery · · Score: 5, Insightful

    See for example Hillier and Liebermann, Introduction to Operations Research, "Inventory Theory" (chapter 18 in 8th edition) This is basically managing the components of the inventory model to where the value of filling the order yields maximum profit. It might be really annoying (like when I got charged $1500 for a replacement wiring harness for my truck), but it should not be a big surprise to anyone who thinks about this.

    1. Re:That's how inventory theory works! by Scarred+Intellect · · Score: 3, Interesting

      I work in Operations Research, and am still very often surprised at how often people DON'T think about things like this. To me, it makes perfect sense...but then again, maybe that's why I'm in the field.

    2. Re:That's how inventory theory works! by Anonymous Coward · · Score: 0

      Being surprised is not the issue, the gouging is the issue.

    3. Re:That's how inventory theory works! by AmiMoJo · · Score: 1

      Are you in the US? Cars in the US seem to be a massive rip-off, and they aren't exactly cheap in the UK.

      Not just parts, US cars seem to need an extraordinary amount of maintenance compared to the same models in the UK.

      I have a feeling it's to do with consumer protection law. If my 8 year old car needed a $1500 wiring harness replacing I'd be asking the manufacturer to contribute to the cost, or just getting it done for free. If that somehow failed I'd get one for five bucks from a scrapyard or eBay or 3rd party.

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    4. Re: That's how inventory theory works! by reanjr · · Score: 1

      One man's price gouge is another man's price discovery.

    5. Re:That's how inventory theory works! by postbigbang · · Score: 3, Interesting

      I understand supply and demand, and pricing for profitability. There is branding, and market positioning.

      My long experience owning a lot of cars and restoring 90% of them as both a hobby and side-money, is that I walk away from the Accenture-like pricing brands completely. If the aftermarket or a boneyard can't supply a part that allows me a profit, I walk from that brand.

      Brands that have a good aftermarket supply chain: GM, Ford, Ford Truck, Chrysler mini vans

      Brands that I won't touch that I used to do: Jaguar, MG, Rover, Austin, Mini, Subaru, Fiat, Peugot diesels

      Brands that I'll currently do: Honda, Toyota, Nissan, BMW, pre-1998 VW, certain Audis.

      My goal is not to lose money, and make sure a vehicle isn't coming back from a dissatisfied customer. I outsource body/interior work.

      Some vehicles have a strong enough statistical presence to force down prices. I go to dealers only as a last resort, and dealer parts networks are wickedly un-coordinated. Looking at you, Honda. Over the years, I've done plenty. Plainly, some brands are insane (looking at you, Mini). Consumers suffer. But I believe that the market place should decide, and let the assholes that over-price themselves get a bad rep, then crater. So long as the governments don't bail out the losers, I'm fine with watching brands disappear like Saab did.

      --
      ---- Teach Peace. It's Cheaper Than War.
    6. Re:That's how inventory theory works! by HornWumpus · · Score: 2

      Do you want to know how I know you haven't been to a scrapyard in decades? Five bucks?

      Most wiring harness problems aren't manufacturing related, fire, idiot and rodents. Occasionally you get a brief period where a manufacturer gets their wire spec wrong (Honda at the door hinges), but that's so expensive, they get right on it.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    7. Re:That's how inventory theory works! by Anonymous Coward · · Score: 0

      It should be forbidden by regulation though.

    8. Re:That's how inventory theory works! by Impy+the+Impiuos+Imp · · Score: 1

      The constant vibration means the finest of dust slowly works into the connectors, eventually breaking the connection. This is a very difficult problem to solve.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    9. Re:That's how inventory theory works! by TechyImmigrant · · Score: 1

      >Do you want to know how I know you haven't been to a scrapyard in decades? Five bucks?

      Nothing in the UK costs five bucks. They use pounds.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    10. Re:That's how inventory theory works! by pr0fessor · · Score: 1

      We have locally owned auto-repair shops and dealerships if you go to an authorized dealer for repairs don't expect to get 3rd party parts and it to be much more expensive the locally owned auto-repairs will give you an option if you want oem or 3rd party parts sometimes those part are available from multiple 3rd parties with varying warranty lengths.

    11. Re:That's how inventory theory works! by Anonymous Coward · · Score: 1

      They would be wagering five quid anyways...

    12. Re:That's how inventory theory works! by Anonymous Coward · · Score: 0

      See for example Hillier and Liebermann, Introduction to Operations Research, "Inventory Theory" (chapter 18 in 8th edition) This is basically managing the components of the inventory model to where the value of filling the order yields maximum profit. It might be really annoying (like when I got charged $1500 for a replacement wiring harness for my truck), but it should not be a big surprise to anyone who thinks about this.

      It is not a surprise. It is, however, a huge problem with unregulated free markets. Regulation is generally bad (because of the cost of following and figuring out and enforcing regulations, and the cost of changing them when they no longer make sense), but without regulation natural market incentives means companies will take advantage of people all the time.

    13. Re:That's how inventory theory works! by Shotgun · · Score: 1

      Citation needed.

      --
      Aah, change is good. -- Rafiki
      Yeah, but it ain't easy. -- Simba
    14. Re:That's how inventory theory works! by HornWumpus · · Score: 1

      That's not a broken harness. That's a dirty connector. Contact cleaner and dielectric grease.

      When training up recent college grads in tech rolls (has been a good way to fix PCs for decades):

      First bit of advice. It's the power supply, it's always the power supply...(50% in my experience, YMMV)

      Second: It's a loose connector. Unplug and replug all the connectors. Reseat all the expansion cards.

      Third: Yank and spank. Remove all the noncritical parts, leave populated motherboard and power supply (Yank). POST. Add parts 1 at a time and POST (Spank the power button).

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    15. Re:That's how inventory theory works! by sinij · · Score: 4, Insightful

      While I support spirit of your argument, I must point out one fatal flaw in it. People who buy new cars are not the same people who repair them out of warranty.

      For example, BMW part prices started insane and went up from there over last decade or so. This had zero effect on new car sales. It does depress residual value at the end of the lease, but people don't seem to factor it into their purchasing decisions.

    16. Re:That's how inventory theory works! by Shotgun · · Score: 1

      And people will take advantage of companies all the time. It's how the world works.

      --
      Aah, change is good. -- Rafiki
      Yeah, but it ain't easy. -- Simba
    17. Re:That's how inventory theory works! by TechyImmigrant · · Score: 1

      The scrap yard is still going to charge a monkey.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    18. Re:That's how inventory theory works! by postbigbang · · Score: 2

      There is the warranty effect, insurance cost pressure, leasing skews, and other variables in the path, too.

      With a large enough volume, a secondary market emerges with rebuilt-reman components, as well as suppliers offering "compatibles". Yes, badging and brand-proprietary parts are still a seller's market. Can't change that.

      Mercedes took a huge hit in customer loyalty.... along with some other brands when they started selling parts as though they were made of pure gold, rather than the junk they were designing and passing off as high-quality. Cadillac to a different extent also diminished their brand significantly.... as did other brands that thought themselves cash-cows like Lexus, Infiniti, etc.

      People are herd animals with new car purchases, either aligning themselves socially or by dealer financing. Only rarely do they think five years down the road about *anything*, sadly.

      --
      ---- Teach Peace. It's Cheaper Than War.
    19. Re:That's how inventory theory works! by Guppy · · Score: 1

      Brands that I'll currently do

      On the chance you've worked with them, any experience with Hyundai's aftermarket supply?

    20. Re:That's how inventory theory works! by Darinbob · · Score: 1

      I don't think this is necessarily a "software" issue per se, they're just using software to make it easier to do what they always have done.

    21. Re:That's how inventory theory works! by postbigbang · · Score: 1

      Haven't worked with them. Young, long warranty, so not much in the aftermarket worth fixing. People usually drive them into the ground, so underneath where I like to buy and restore.

      --
      ---- Teach Peace. It's Cheaper Than War.
    22. Re:That's how inventory theory works! by EndlessNameless · · Score: 2

      And people will take advantage of companies all the time. It's how the world works.

      Companies can set return/exchange and warranty policies as they see fit to avoid abuse. Customers have little say in the matter. They could vote with their wallets, except most companies have settled rather closely around a status quo that isn't really great for consumers.

      Maybe once in a while a jackass will return a box of rocks to Best Buy instead of a stereo receiver. But the company will quickly write a policy that forces all customers to wait while customer service reps inspect all returns. The companies have the power to stop abuse.

      One man cannot fix an abusive company unless the law is on his side. Consumers can only stop bad companies through collective action of some sort---boycotts, class action suits, regulation, etc. There is a huge imbalance of power, and pretending that it somehow balances out because "people do it too" is hopelessly naive.

      --

      ---
      According to the latest ruleset, this post should be modded as Vorpal Flamebait +5.
    23. Re:That's how inventory theory works! by sjames · · Score: 1

      Any market where significant value pricing is possible is an unhealthy market. It is the government's job to regulate the market to maintain it's health.

    24. Re:That's how inventory theory works! by sjames · · Score: 1

      I would consider making insulation out of rodent food to be a manufacturing defect. Rodents are everywhere and when they find food, they eat it. This should surprise no one.

      Rodent food insulation is right up there with water soluble paint on the list of obviously bad ideas.

      Some of the newer soy insulation includes Bittrex (the stuff to make you quit biting your nails) to prevent rodent problems.

    25. Re:That's how inventory theory works! by Anonymous Coward · · Score: 0

      Half the words you said appeared to be english but were incomprehensible. Doesn't matter. You put Subaru on a shit list. Now you're on mine. GO FUCK YOURSELF.

    26. Re:That's how inventory theory works! by thesupraman · · Score: 1

      And the outcome of this has been a nice solid market for second-source parts, often from the same manufacturer (gee, who would have thought BMW doesnt actually manufacture most of their wear items..)

      The 'victim' is the people not smart enough to avoid the st(d)ealers.

      Most car manufacturers play exactly the same game.

      A classic example is engin oil specs - why generally dont need to be particularly specific, and yet there has been an explosion of thres spec types, often specific to single manufacturers, and only available from them, until you find out that it is the EXACT SAME OIL available under 5 different 'specifications' from different manufacturers, because the oil companies dont actually make that many different types...

  4. In other not surprising news... by sjbe · · Score: 5, Informative

    Ever had the nagging suspicion that your car's manufacturer was charging outrageous prices for parts simply because it could?

    Suspicion? No. It's a well known fact. There is a reason car dealers have terrible reputations for ripping of their customers. Of course the markups on service parts is huge. Anyone who didn't know this is an idiot.

    My day job is running a small manufacturing company that makes (mostly) car parts. I know what the markup is on the stuff we sell. As a crude rule of thumb you can take whatever they charge you and divide by 8 and chances are good that's about how much the company that actually made the part sold it for. My company makes wire harnesses and I've seen products that have maybe $5 worth of material content and maybe double that in labor and overhead being sold for north of $300. One of the sales reps we work with from a big distributor told me a story about how he saw a guy buying a harness for his car ahead of him in line at the dealer. He started laughing and when they asked him why he said "I sell every component that goes into that harness and you are holding maybe $4 in material". The sale price on the harness was $540.

    1. Re:In other not surprising news... by TFlan91 · · Score: 1

      Production costs alone do not dictate the retail price - especially with vehicle parts, some of them can be kinda heavy - distribution logistics increases the price more than manufacturing sometimes...

      But in the case, ya, you are right. I've experienced this myself when replacing some parts on my bike...

    2. Re:In other not surprising news... by Anonymous Coward · · Score: 2, Insightful

      Suspicion? No. It's a well known fact. There is a reason car dealers have terrible reputations for ripping of their customers.

      I find it is a double edged sword ... yes, you pay whatever the dealership/car company is charging for parts ... but they also have standardised the labour costs.

      So, a specific job is going to be however many units of time was determined by the manufacturer -- no more, no less.

      Contrast that with smaller garages, where you're going to pay for them to figure out the problem, track down the part, and figure out how to install it.

      You can end up paying so much more in labour costs when you don't go to the dealer it isn't funny. I know my brother has sunk more into vehicle repair costs from independent mechanics than he ever should have, because he thought he was saving money.

      But, knowing that they figure out the most they can get away with charging for parts is yet another example of why the people who bray about the "free market" are full of shit -- the market isn't free, because the players will go to great lengths to ensure it isn't.

      The 'market' isn't setting the price, the vendors are gouging as much as they can get away with. Prices don't ever go down, because executive bonuses need to be kept at record levels.

    3. Re:In other not surprising news... by bobbied · · Score: 1

      I don't see the problem here..

      If the market sustains that price, why shouldn't the retailer be able to sell it at that price?

      What stops the manufacturer from undercutting by selling direct? If you can sell that $500 wiring harness for $100 and make money, why don't you? I'm guessing that the issue is more than markups as it goes though hands... Time is money, Money costs money, inventory costs money, storage cost money, marketing cost money, shipping costs money, handling costs money, storage cost money, counting money costs money... Get the picture?

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    4. Re:In other not surprising news... by Anonymous Coward · · Score: 0

      Chances are the OEM has a contract with the auto manufacturer that prevents them from selling direct.

    5. Re:In other not surprising news... by ctilsie242 · · Score: 2

      What makes car parts so profitable is that there are so many varieties of components, and makes, models, years, and trim levels are all different, and the differences are usually relatively minor, usually some change in shape of the plastics, mounting holes, wiring placement, as opposed to essential functionality.

      One thing to consider is types of cars when buying them. For example, on one older vehicle I have, the headlights were blurry. It was cheaper to replace the ABS plastic headlight lamps in the front with OEM spec parts than it was to buy that stuff sold that supposedly cleans them. Even light bulbs. For a few dollars, I upgraded the tail and marker lights from bulbs to LEDs.

      Makes me wonder what automobile make is the best for TCO, over the long haul.

    6. Re:In other not surprising news... by Anonymous Coward · · Score: 1

      The "news" is that software is to blame. Not the people. It's the software. So we can't blame the companies and the execs now. Damn software. Those companies are just victims.

    7. Re:In other not surprising news... by sjbe · · Score: 2

      If the market sustains that price, why shouldn't the retailer be able to sell it at that price?

      Nobody said they couldn't. Just pointing out that the fact that hefty markups occur on service parts is hardly a shocking revelation.

      What stops the manufacturer from undercutting by selling direct?

      A variety of things. 1) You don't make a part for someone and then sell it yourself unless that is agreed to in advance. That's a great way to get lawyers involved and piss off customers when you start selling someone's product out the back door. 2) Most of the manufacturers don't have the sales channel to sell it themselves and would not find it economical to develop one. 3) There often are contractual stipulations about such things including confidentiality requirements and intellectual property rights issues.

      If you can sell that $500 wiring harness for $100 and make money, why don't you?

      We cannot sell it for that much because we don't have someone with a broken car sitting in our lobby with their pants figuratively around their ankles.

    8. Re:In other not surprising news... by HornWumpus · · Score: 2

      LOL, you think the book hours are something other than another way to rip you off.

      Hint: They charge book hours, they pay (all but the most senior mechanics) actual hours (and fire them if those aren't _way_ under book) and pocket the difference in both time and rate. Dealerships have _one_ senior mechanic/shift, who's constantly on the verge of rage quitting. The rest are recent tech school grads, who are making well under $20/hour.

      Which is for paid work, from super chumps, the stealership mechanics get even more fucked on warranty work. Even the stealership can get into grief for pulling their usual shit on the manufacturer, the manufacturers know the dealerships well, warranty audits are constant threats. So the stealership helps the manufacturer fuck the mechanics to keep the numbers looking good enough the auditor stays away.

      It will all fall apart once the last moron comes to his senses and the dealership service department is left warranty only. But new morons are born every year.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    9. Re:In other not surprising news... by Impy+the+Impiuos+Imp · · Score: 1

      Went to get a Chrysler key fob replaced. The salesguy selling you the repair service (that's what they legally are, there even was a Supreme Court case about it) called the parts to ask if they had any in stock, on speakerphone.

      "Yes, we have one of that model in stock, it's 67 do..." cut! The sales guy cut the speakerphone.

      I was charged $200.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    10. Re:In other not surprising news... by sjbe · · Score: 1

      I find it is a double edged sword ... yes, you pay whatever the dealership/car company is charging for parts ... but they also have standardised the labour costs.

      "Standardized"? I do labor costing for a living. Those "standard rates" dealers offer have precious little to do with the actual cost of providing service. Dealer service times are HEAVILY padded for obvious reasons.

      You can end up paying so much more in labour costs when you don't go to the dealer it isn't funny.

      I can say the exact opposite and it is equally true. I had a relay that needed replacing in one of my cars. Cost of the part was about $70 bucks. Dealer wanted (no joke) nearly $1000 to replace it and tried to tack on a bunch of unnecessary stuff as well. My local shade tree mechanic charged be $120 parts and labor.

    11. Re:In other not surprising news... by Anonymous Coward · · Score: 0

      Yep. If the dealer charges you $100/hour labor, the guy that does the work is getting paid $20/hour. And the guy doing the work only gets paid for the actual work---if it is a slow day and there are no customers, the tech doesn't get paid.

    12. Re:In other not surprising news... by bobbied · · Score: 1

      Then why do you care what the retailer charges?

      Even if the part only costs $4 in parts to make, you are just building somebody else's stuff. They did the design, they pay to get it built and run the supply chain pipeline. You make your profit, you are done with the part now because of your contract...

      Let the market decide, because the alternative isn't pretty. Let the PR firestorm run it's course, let the market do it's thing and it will get fixed.

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    13. Re:In other not surprising news... by HornWumpus · · Score: 1

      Your fault then. Haggling is legal, even at the parts counter. You knew the jobber price, don't pay a penny more. You know they're selling them profitably at that price.

      Lots of locksmiths have those. Not a reason to goto the stealership in the first place.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    14. Re:In other not surprising news... by Shotgun · · Score: 1

      Contrast that with smaller garages, where you're going to pay for them to figure out the problem, track down the part, and figure out how to install it.

      What kind of fly-by-night garage are you going to that hasn't settled on a supply change, knows how to troubleshoot, or has problems reading a shop manual? Furthermore, a quick perusal of any model specific car forum will quickly show you that the dealer's idea of troubleshooting is to shotgun parts until something fixes the problem. The customer getting stuck with a bill for each attempt.

      If you're not savvy enough to stay away from those guys, well...a fool and their money are soon parted.

      --
      Aah, change is good. -- Rafiki
      Yeah, but it ain't easy. -- Simba
    15. Re:In other not surprising news... by Anonymous Coward · · Score: 0

      I worked as an apprentice in a dealership about 15 years ago.

      All mechanics were paid book. Book says 5 hours. Dealership charges 5 hours. Mechanic gets paid 5 hours. Of course they charged 75 an hour, and then paid the mechanic 25-30 an hour. If you got it done in 1 hour. WIN. 10 hours. Well you and the dealer looses. As an apprentice I was paid straight time. I was the only one in the shop paid straight time that worked on the cars.

      The ONLY time I saw that any different was warranty work. The only difference there was they would dictate the hours, no matter what the book said. A few times the guy I was apprenticed to would tell me to go hot rod the car when it was knocking. The point there was we got paid the same either way, but if there was no visible damage wed have to tear the engine down, despite knowing it was trash. Much easier with a rod hanging out the side.

      You point about every dealer having the one mechanic on the verge of rage quit is spot on though. The guy I was apprenticed to would quit for a week or so every 3-6 months. Theyd have me work with someone else for the week, sometimes in cross training in AC/elec or something. Then I would come in one day and his tool box would be back where it should be, and hed be bitching I hadn't pulled any cars in yet. Ahh good times.

    16. Re:In other not surprising news... by HornWumpus · · Score: 1

      Even 15 years ago, that was an unusual shop.

      If it takes you 10 hours to do a 1 hour job, you're simply fired.

      No work and they're simply sent home or called and told not to come.

      The guy that 'rage quits' on occasion, my kid brother. The dealers have gotten better at fucking _everyone_ over. You just have to wonder how long the chumps will keep coming back for the financial sodomy.

      The independent shops aren't thriving for some reason. I think it's simply lack of daylight in the market, if there existed something like Yelp, but trustworthy...

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    17. Re:In other not surprising news... by misnohmer · · Score: 1

      Yea, you know that $1000 CPU you can buy for a shiny new gaming PC, that's $0.10 worth of raw materials, add some processing and labor and it cost maybe $50 to make. Why $1,000? Because very few parts that come out can run that fast (the slower ones sells for less, as little as $250) and there are customers willing to pay that. Also worth noting, the company that designed it spend a billion on engineering, but people don't want to hear about engineering or overhead costs.

      I briefly ran a student painting company way back. We paid our employees $8/hr but we charged $35/hr. After all the insurance, benefits, advertising, and other costs we made just under $7/hr on each hour. Most people don'r realize that is costs money to run a business. There are many starving business owners out there who are perceived as "rich" because they own a business - nobody cares if they take money out of their own retirement to meet payroll. Of course when a business gets a lucrative contract, then all employees wants a bonus, but when a business has no sales nobody wants to take a pay cut.

  5. Upscale cars, upscale parts by Kohath · · Score: 1

    Jaguar and Land Rover drivers have already decided to pay up for upscale branding and features. They like paying a little more. They could buy a Hyundai or a Jeep if they would rather save money. They could also source their own 3rd party spare parts in some cases if they wanted to save.

    This is a nothing story. Upscale brands like Louis Vuitton and Prada charge huge markups on something as ordinary as luggage and handbags. There's no practical rationale for it. People who buy that stuff know what they're getting into.

    1. Re: Upscale cars, upscale parts by Anonymous Coward · · Score: 2, Insightful

      A Jeep to save money? Pretty much everything breaks on a Jeep.

    2. Re: Upscale cars, upscale parts by Anonymous Coward · · Score: 0

      Sorry you had such an awful experience. I've owned several jeeps (and regularily offroad) and I've put 200k+ miles on each of them with no major repairs, just regular maintenance. So I guess you could say I've had the exact opposite experience with jeeps.

    3. Re: Upscale cars, upscale parts by Bob+the+Super+Hamste · · Score: 1

      Those old 4.0L I6 engines were a great as were the AMC manual gear boxes that some were connected to. Those could take a lot of abuse. However anything that was Chrysler designed on those vehicles was crap

      --
      Time to offend someone
    4. Re: Upscale cars, upscale parts by HornWumpus · · Score: 2

      Some fools buy vehicles other than actual jeeps (Wranglers these days) from jeep. The Cherokee is pretty awful, in a league with the leather covered, castrated Land Rovers sold in the USA.

      Even actual Jeeps were terrible during the AMC days. Some had Renault (spit) parts. But those were just bodies to install V8s into. None of the driveline components were worth keeping.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    5. Re:Upscale cars, upscale parts by mwooldri · · Score: 1

      Depends ... At one time Ford, Mazda, Jaguar and Volvo shared a common platform with their cars and a certain part for a Ford would fit for the Mazda, Volvo, Jaguar, etc. Sometimes the Ford badged component was more expensive than the Jaguar part. Go figure...

    6. Re:Upscale cars, upscale parts by dublin · · Score: 1

      Super high-end luxury brands are by definition not affected by the normal rules of economics - Economists even have a name for them: Veblen goods, after the economist that first noted the effect: https://en.wikipedia.org/wiki/...

      --
      "The future's good and the present is nothing to sneeze at." - Roblimo's last ./ post
  6. This is old news by Maury+Markowitz · · Score: 1

    They've been doing this for DECADES.

    A friend from Ireland had a Jag E-type and there was one switch that would always die. It cost some ungodly amount. However, the exact same switch was also used in a low-end design, with a different badge (Mini?). That version, absolutely identical, sold for something like 1/4 the price. That was in the 70s.

    1. Re:This is old news by Anonymous Coward · · Score: 1

      An 70s English car with electrical problems? NO WAY!

    2. Re:This is old news by Bob+the+Super+Hamste · · Score: 1

      Since that would have been the Lord of Darkness, it wasn't just one switch, it was all of them, as well as a set of points, and probably a couple of wiring harnesses plus an ignition coil.

      --
      Time to offend someone
  7. Regular price gouging for lasting too long by Tyr07 · · Score: 1

    AC Compressor for my jeep grand cherokee, 2001 was 700$ new at retail, 500 rebuilt.

    Got one from a wrecker for 140$, if I could have waited, could have ordered the part from amazon brand new for 180$.
    Since cars are aging they're trying to gouge, dramatically increasing the prices of inexpensive parts to get their piece to punish you for not buying their new car that breaks in 10 years vs yours that's been running for the last 20.

  8. Which harness? by sjbe · · Score: 1

    It might be really annoying (like when I got charged $1500 for a replacement wiring harness for my truck)

    Out of professional curiosity (I make wire harnesses for a living) what harness were you having replaced? If it's one of the big body or engine harnesses that might not be a bad price once labor is included. Installing those is a huge PITA and they can cost several hundred dollars to make. We make an engine harness for a V8 bifuel vehicle that we sell for around $300 each. Our customer obviously marks that up somewhat. ;-)

    1. Re:Which harness? by david.emery · · Score: 1

      Nissan Frontier - mice or squirrels damaged the wiring. The labor cost was even more than the parts cost, $3700 all told. Fortunately my insurance covered this under Comprehensive coverage (less my deductible, of course.)

    2. Re:Which harness? by sjbe · · Score: 2

      Nissan Frontier - mice or squirrels damaged the wiring. The labor cost was even more than the parts cost, $3700 all told. Fortunately my insurance covered this under Comprehensive coverage (less my deductible, of course.)

      Ahh so the engine harness? Then that actually wasn't that outrageous a markup compared to some I've seen. We make and sell harnesses like that and they typically cost between $250-700 to make depending on complexity. I'm not actually surprised the labor cost more than the part. Pulling some of those things out and replacing them is a HUGE pain especially if they go through the firewall and under the dash.

      Of course I've had an entire engine replaced for about that amount of money so...

    3. Re:Which harness? by AlanBDee · · Score: 2

      You know that super annoying person who knows nothing of the industry suggests a simple solution? Hi, I'm super annoying.

      Why are there huge wiring harasses in the first place? Wouldn't it make more sense to have many smaller harnesses that are easier to replace small sections of without having to disassemble half the car?

    4. Re:Which harness? by Anonymous Coward · · Score: 1

      Think assembly. The harness is easier to install during production if it has as few connectors as possible. Otherwise you've just added more points where you can make assembly mistakes, etc. Most of the automakers also provide repair connectors so it takes substantial damage to actually require full harness replacement instead of just in place repair.

    5. Re: Which harness? by reanjr · · Score: 2

      I'm not in the industry and know nothing, but my guess is it's because it's simpler logistically during manufacturing to have an all-in-one that is provided by a single vendor.

    6. Re:Which harness? by uncqual · · Score: 3, Informative

      While it would reduce labor for many repairs, it would likely increase initial manufacturing labor costs and increase the number of SKUs to stock for spares (which increases costs for both the manufacturer and dealers). Large integrated harnesses can be built by (the cheapest?) suppliers and be installed "on the line" more quickly than a bunch of discrete wiring.

      The manufacturer cares much more about initial manufacturing cost than later repair costs - by reducing the former they can either keep the difference (more profit per car) and/or sell more cars because their pricing is more competitive (therefore increasing volume).

      While this decision likely increases the cost of insurance slightly, consumers don't look that closely at that aspect and it's quite possible that if the manufacturer passes on a portion of their manufacturing cost savings that will more than compensate for the increased labor costs of replacing a complicated wiring harness. Most cars (well, before soy based insulation at least) never have any wiring harnesses replaced and many cars that would need that done would have been totaled even if the parts and labor for replacing the harness were free (for example after a fire or flood).

      --
      Why is there an "insightful" mod and why isn't it "-1"? If I wanted insight, I wouldn't be reading /.
    7. Re:Which harness? by HornWumpus · · Score: 1

      It's not exactly a frequent maintenance item. What % of cars do you think go the shredder with, more or less, their factory wiring? I'm guessing 99%+.

      Anybody with a soldering iron, a pair of clippers and some confidence (competence optional, also nice insulating masking tape) can and does modify/repair wiring. That's usually the kind of thing that leads to a new harness when it goes _really_ wrong.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    8. Re:Which harness? by sinij · · Score: 2

      This is changing with soy now getting used in wiring harnesses. It is insulation with rodent food. It gets eaten anytime rodents get access to your sitting car.

    9. Re: Which harness? by Impy+the+Impiuos+Imp · · Score: 1

      To get cruise control, the dealer can add the controls and enable it in the computer. The harness wires and software are already in the vehicle because it's cheaper that way.

      --
      (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    10. Re:Which harness? by TechyImmigrant · · Score: 1

      >Anybody with a soldering iron
      Check!

      >a pair of clippers
      Check!

      >and some confidence
      Check!

      However when you look for the documentation, it's an incomprehensible table of three letter codes for wiring colors and no diagrams or connector pinouts. When you look at the wiring harness, every wire is black.

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    11. Re:Which harness? by laurencetux · · Score: 1

      wasn't there an issue where it turned out the wiring harnesses were getting eaten because the jackets were made of FOOD?? (some sort of econut soy based plastic IIRC)

    12. Re:Which harness? by drinkypoo · · Score: 1

      Pulling some of those things out and replacing them is a HUGE pain especially if they go through the firewall and under the dash.

      I don't know about a Nissan Frontier, but my 1989 240SX had a "super multiple junction" at the firewall that avoided having to do that. I forget how many pins it had, somewhere 70-100 I think, but it was retained by a ~6mm bolt in the center with a convenient 10mm hex head. That way it could have the ECU behind the right side kick panel and still not be a PITA.

      I did a quick google search for "nissan frontier PCM location" and it seems that Nissan is actually putting the unit in that vehicle in the same location, which is amusing. I don't know if it has a SMJ, but I do know they used one in the Xterra from diagrams which also popped up... ah yes, a little more googling and yes the Frontier also has a SMJ. I'm glad Nissan has kept that design element, it's a good one.

      Given that, I could probably swap the Frontier engine harness in around an hour and definitely under two, and I'm only an experienced amateur and not a professional (although I did get an A in the class, and ace the certification exam.) I've done harness swaps on the 240SX and on my 1998 Audi A8, but that's got the PCM in an "e-Box" under the hood, behind a bulkhead. The connections between the underhood harness and the rest of the vehicle occur inside of the box, and are 100% connectorized so that part of the swap is trivial. The annoyance comes in fishing the wiring out from beneath the fuel rail.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    13. Re:Which harness? by dublin · · Score: 1

      Connectors are evil. Every connector is a potential source of failure waiting to happen. Reliable design principles deliberately minimize the number of connections, since modulo rodents, wires almost never fail in the middle.

      --
      "The future's good and the present is nothing to sneeze at." - Roblimo's last ./ post
  9. All I can say is.... by bobbied · · Score: 2

    So?

    Are we saying that companies cannot charge what the market is willing to pay for their products now? In most cases, I hope not.

    Where I get the feeling of outrage, why should I pay that much for a part for my car? I'm not opposed to collecting $300/hour for labor or selling that rare baseball card I found in the attic for a tidy sum. How's that different except that I'm the one collecting and not paying?

    Companies should be able to charge what ever they can for their products and let the market chips fall where they may. As long as they don't collude with their competition, have at it. Just figure that consumers will eventually figure out what you are doing and you will have to live with the PR backlash.

    --
    "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    1. Re:All I can say is.... by Anonymous Coward · · Score: 0

      Are we not allowed to call them greedy fucking kikes?

    2. Re:All I can say is.... by Fly+Swatter · · Score: 1

      The pharmaceutical industry will love you! That's the kind of thinking that priced out the epi pen. At least for cars there is the total cost of ownership ratings, which takes things like this into account.

    3. Re:All I can say is.... by Anonymous Coward · · Score: 0

      People misunderstand how a free market functions. For some reason many people suffer under the mistaken belief that a free market forces products to be produced for the smallest possible profit margin (i.e., cheaper). That's not how it works at all. A free market forces producers to sell at a price point that maximizes their profit.

      Demand sets prices, not production costs. Production costs are only a floor. If I can make a part for $1, and sell 100,000 a month at $10, my gross profit is $900,000 a month. However, if I can sell 25,000 a month at $41, my gross monthly profit is $925,000 even after accounting for my fixed costs. I drove off 75% of my sales with higher prices but my profit still increased. THAT is how a market works.

    4. Re:All I can say is.... by GuB-42 · · Score: 1

      We are allowed to. That's part of the bad PR GP is talking about.

      However, TFS mentions a lawsuit, which seems to imply that it is illegal for companies to set their prices based on market research, which sounds ridiculous.

    5. Re:All I can say is.... by Anonymous Coward · · Score: 0

      Right. I didn't see any sign of collusion here. Just pricing what the market will bear and using some software to automate it. Some idiot progressive/marxist posted earlier that we should have the government threaten everyone. Ugh.

    6. Re:All I can say is.... by bobbied · · Score: 1

      And you give a solid example of why companies are driven to not do this. I remember the PR firestorm called down on the CEO of the company that produced the Epi-Pens and he relented. Plus, in this case, due to the fact that epi-pens where generic, over pricing them was a stupid move as it made it attractive for another company to spin up manufacturing and under cut the price. The free market corrected this.

      A better example for you is a drug maker that's marketing a drug they hold a patent on. There can be no competition in this case and the drug can command any price the user is willing to pay. However, this too is controlled by what insurance is willing to pay, and most don't care what some medical product costs because they don't pay anyway.

      So in your example, the free market worked, the price got reduced... In my case, the free market doesn't work nearly as well, but you don't care because you don't pay directly, the insurance company does. The free market works as long as there is competition and participants are not colluding to fix prices.

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    7. Re:All I can say is.... by HornWumpus · · Score: 1

      That works if you're Bugatti. Not enough volume to draw in new market participation.

      If you're Ford, that ends with you selling none (SVO excepted).

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    8. Re:All I can say is.... by Shotgun · · Score: 1

      No. The thing that priced out the epi pen was the FDA denying other companies their right to bring safe, competitive products to market. Thank you for the ever so helpful regulation.

      --
      Aah, change is good. -- Rafiki
      Yeah, but it ain't easy. -- Simba
    9. Re:All I can say is.... by thesupraman · · Score: 1

      Because these are repair items for a big ticket item they already solid you, and these days the onboard computers often try and REQUIRE you to purchase their own item (not a second source), and yet they are legally required to give you a right to repair?

      In what way is that like your found card? I'll tell you, NOT EVEN A LITTLE.

      It is more like your bank calling you up and saying 'there is a problem with accessing your savings account, and you only have to pay us $4,500 to fix it, have a nice day'.

    10. Re:All I can say is.... by bobbied · · Score: 1

      If you don't like the repair costs of your car, buy one with lower repair costs. You can even call attention to the repair costs and advise your friends not to buy that manufacturer's stuff. The market fixes this kind of thing eventually.

      I'm not condoning companies that choose to be unreasonable about pricing and don't mind picking your pocket because they have you over a barrel, but I am arguing that they *should* have the right to price their stuff as they see fit and sell it for what the market will support, even if they make insane profits. Why? Because the alternative is to put government regulations in place for "price controls" which will only have negative results for availability. So, that car part that only costs a couple of dollars to make might only be available special order with a three week lead time because it doesn't make sense to stock them locally because there is only a few dollars profit in each sale due to price controls. Then, instead of paying $500 for the part and having your car back today, you wait 21 days and pay $5? Sound good to you? Personally, I'll take the price gouge now and then to get my car back running today.

      Look, other industries do this kind of thing all the time. They sell something at a lower initial price that needs routine maintenance or parts replaced and then charge you for these parts (think print cartridges) to make up for the lower initial price over time. Ink Jet Printer makers where the masters of this....

      Is this business model morally right? I don't think so, but it is worse to regulate such stuff away so we live with it and let the free market sort it out and the PR backlash fix the pricing structures of companies who don't provide the most value to their customers...

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    11. Re:All I can say is.... by dublin · · Score: 1

      Kill the FDA - there is NO reason it should even exist in a world where information can flow as freely as it does today. The FDA's foot dragging, flat-out refusal to even allow trials on many things, billion-dollar approval programs, insistence on testing only one active ingredient, and Gestapo-like enforcement costs hundreds of thousands of lives every year. We'd all be better off without it.

      --
      "The future's good and the present is nothing to sneeze at." - Roblimo's last ./ post
  10. Software isn't to blame. by Gravis+Zero · · Score: 1

    The software doesn't control them, it merely provided suggestions. The people selling the parts are the ones that are setting the price. Greedy humans are to blame here.

    --
    Anons need not reply. Questions end with a question mark.
    1. Re:Software isn't to blame. by Anonymous Coward · · Score: 0

      Obviously it's greedy humans: greedy humans created the software.
      But it's disingenuous to say that the software simply recommends and it's up to the humans to make the decision. The sole purpose of the software is to do this. Buying it means you'll use it.

    2. Re:Software isn't to blame. by Anonymous Coward · · Score: 0

      Could you please define the non-greedy profit margin which they are to blame for exceeding? I hope you aren't hypocritical enough to claim they are to blame for this while you would still yourself negotiate a price for something that is less than you can comfortably afford or a salary for yourself that is more than you need to live acceptably.

  11. Blame Whom? by Jonathan+C.+Patschke · · Score: 5, Interesting

    Ever had the nagging suspicion that your car's manufacturer was charging outrageous prices for parts simply because it could? Software might be to blame.

    Damn those silly algorithms and expressions organizing themselves in a way to make extra money for a completely uninvolved party who happened to deploy them. The nerve of them!

    The practice may be automated now, but it's been going on for literally decades. Even as far back as the 1980s and 1970s, you could swap parts between Corvettes and other cars. The part numbers would be different, but the equipment itself would be functionally identical. Funny how the part for the Corvette always cost several times as much; I'm sure it's purely because there were fewer Corvettes on the road (than, say, Citations or Skylarks), so the manufacturing costs were higher, right? Riiiiiiight

    The price of a thing is always cost plus, where "plus" is defined by what the market will endure. If you can keep the cost hidden (see also: US healthcare) or obscure the availability of a thing (nearly-identical parts with different labels, with only one label approved for your application), the market will endure a hell of a shafting until the house of cards comes down.

    --
    Pining for the days when The Glorious MEEPT!!! graced SlapDash with his wisdom.
    1. Re:Blame Whom? by bluefoxlucid · · Score: 1

      I suggested tying corporate income tax rates to corporate net operating profits so that huge-margin price gougers end up paying high taxes and low-margin corporations pay very little.

    2. Re:Blame Whom? by Anonymous Coward · · Score: 0

      ...The practice may be automated now, but it's been going on for literally decades...

      Charging what the market will bear has been going on for centuries, not decades.

    3. Re:Blame Whom? by Anonymous Coward · · Score: 0

      This would do nothing to the actual problem at hand, and it's a bit backwards (or at least anti-capitalism). A couple examples...

      Assume company A and company B are competing in a market. Company A comes up with a way to increase their profit margin, possibly with the same cost to the user. Shouldn't Company A be rewarded for improving efficiencies, rather than penalized for doing well?

      Another example... companies already do this! Profits get taxed more already. Companies simply re-invest in themselves, or buy new/better stuff, raise the salaries on top execs, etc... anything to keep the perceived profits low. They do similar games to increase the profits when they want stock to sell and such. Regardless, it won't cause them to lower their prices.

      If you want lower prices, you need competition. If Chevy is the only one legally allowed to make a wiring harness for their cars (patents, trademarks, copyrights, dmca, trade tariffs, whatever it takes), then they'll charge as much as the market will bear.

      As long as we don't give them an artificial monopoly, that shit will fix itself (if there's that much profit to be made on parts, someone else can, and probably will, start making them). You don't need another tax or regulation.

    4. Re:Blame Whom? by ooloorie · · Score: 1

      I suggested tying corporate income tax rates to corporate net operating profits so that huge-margin price gougers end up paying high taxes and low-margin corporations pay very little.

      Funny, that's how corporate tax works. How did you think it worked?

      Note that the auto industry has a net margin of about 2% and the auto parts industry has a net margin of about 5%, placing them below average among US industry sectors.

    5. Re:Blame Whom? by MightyYar · · Score: 1

      A progressive tax rate? We do it with people.

      I'd rather we abolished corporate taxes altogether and made all profits pass-through. Eliminate the capital gains and special dividend rates and call it a day. You'd have what you want because high-income owners would pay more. I'd have what I want because the whole ridiculous game of hiding money from the tax man would shift away from corporations with almost unlimited resources to find loopholes in government rules. You'd still have billionaires playing that game, but without corporate tax law the available loopholes are significantly reduced.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    6. Re:Blame Whom? by bluefoxlucid · · Score: 1

      Well, typically, the US Corporate Income Tax (up to 2016) has been a 35% flat rate (this has varied some) for all corporate net profits, with an adjusted minimum tax of 20% (if your deductions bring your tax burden to below 20% of your pre-deduction taxes, you have to shift those deductions back up to 2 years and carry them forward up to 20).

      So, for example, Apple doesn't pay a 48% CIT, but rather 35%. Adidas, which has a 5% profit margin, also pays a 35% CIT, rather than 16%.

      Note that the auto industry has a net margin of about 2% and the auto parts industry has a net margin of about 5%

      GM has a typical 5-year average around 3.6% and Ford around 4.1%. Many industries average 8%-10%. Apple and Microsoft average 20% net operating profits.

    7. Re:Blame Whom? by bluefoxlucid · · Score: 1

      I'd rather we abolished corporate taxes altogether and made all profits pass-through.

      Many companies have millions of shareholders, and reporting those complex taxes are difficult. Your personal investment portfolio would become this nightmare accounting demon.

      Also: Apple and Microsoft take 20% profit margins. Apple keeps around $10 billion of that every year in an Apple-Inc.-owned bank account instead of distributing it to shareholders. That's money that wouldn't be subject to taxation under your rules.

      without corporate tax law the available loopholes are significantly reduced

      Describe the loopholes.

    8. Re:Blame Whom? by MightyYar · · Score: 1

      Your personal investment portfolio would become this nightmare accounting demon.

      This is not true - my accounting would become easier since all of my dividend income would become simple income. Currently it is treated differently, depending on how long I hold the stock. Same thing with capital gains - I'm already reporting those and my proposal simply changes the tax treatment.

      That's money that wouldn't be subject to taxation under your rules.

      It's not subject to taxation today, either. They play games and keep it overseas.

      But that's in the weeds stuff. I'd obviously adjust tax rates and brackets so that there was no net loss of revenue to the government.

      Describe the loopholes.

      Corporate tax rate in the US was 34% or higher last year. Tax paid was around 24%. The delta is what I'm calling loopholes. We can call them "tax breaks" or "corporate welfare" or "incentives"... whatever language you are comfortable with. In 2018 the new tax rate will be a flat 21%... I'm very interested to see what the actual tax paid will be at this new rate. If it is close to 21%, then my proposal probably isn't necessary. I expect it will be more like 11-15% because corporate-financed accounting and lobbying efforts will always win out.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    9. Re:Blame Whom? by bluefoxlucid · · Score: 1

      This is not true - my accounting would become easier since all of my dividend income would become simple income

      A pass-through payment for a corporate entity isn't simply the corporation granting you income under contract; you are legally entitled to that income based on your ownership in the company, and the conditions of your income are reported by your partnership in the company. You would have to report Form K-1 to the IRS along with Form 1099-S to describe your share of ownership in the partnership and your income thus derived.

      I've had that arrangement before, when I owned CLMT. I handled it by simply not reporting that income to the IRS, since it was like $40 and the IRS does not care (it costs them too much to individually prosecute); my tax software didn't handle it, I didn't understand it the first time, and so I sold all of that stock and skipped it again the next year. I understand it now, but to hell with that. I received the forms well-after I filed my tax returns, too, so they were completed correctly to the best of my knowledge when I sent them in.

      Note that the IRS did get some kind of report from the company, so has documentation suggesting I didn't report some small income, and so could come find me and ask; it just costs way too much to bother.

      Here's the rub: if it's all passthrough with thousands or millions of shareholders and everyone's little $1,000 or $5,000 holding generating $200 of dividends goes unreported, that's potentially billions of untaxed incomes, and a large cost to collect. It's also a lot of sunk cost in tax filing preparation across the nation for all these individual filers.

      Corporate tax rate in the US was 34% or higher last year. Tax paid was around 24%. The delta is what I'm calling loopholes.

      Well, you're wrong.

      When a corporation purchases a $1M machine, they have a $1M asset. That means if you sell $10M of product, spend $9M on wages and materials and corp-to-corp services, and spend $1M to buy a machine (or office furniture), you don't report $0 profits; you report $1M--you're -$1M cash, +$1M machine.

      Now, there's depreciation. Call it a Schedule F 10% per year depreciation down to 10%. That first year, you don't really report $1M profits; you report $0.9M, because $0.1M (10%) goes to depreciation of your machine: it's worth 10% less. Now you have to pay taxes on $0.9M, even though you had $10M of revenues and made $10M of expenses. Fortunately, owner equity is probably up there at this point, so you probably have cash on hand (shareholders are the people who put that cash there to start with) to cover your 35% x $0.9M tax owe.

      The next year, you make $10M revenue and spend $9M again. This time you don't buy a machine; yet your machine depreciates by 10% of its original value again. Your machine is now considered $0.8M "in the bank" (it's an asset). Again: you have $1M of profits--this time unspent--and you report $0.9M.

      In your first year, you might have a profit of $0(!), and your taxable earnings are $0.9M(!!). In your second, you have a profit of $1M, and your taxable earnings are $0.9M again.

      In that second year, you had a 35% CITR, $1M of profits, and paid 31.5% of your profits as taxes. That's 35% of $0.9M.

      In both years, you paid $315,000 in taxes, even though in the first year you had less than that in profits.

      So, you can obviously see this isn't cheating. The tax rates look strange because they are. Don't ask me wtf to do in that first year; I honestly don't know, because I am not a corporate tax expert and when I did it I was using a different corporate structure than the usual C-Corporation and actually reported negative income and the Government paid me thousands of dollars.

      You might enjoy reading up on full expensing, a policy which gets a lot of debate a

    10. Re:Blame Whom? by ooloorie · · Score: 1

      Well, I'm glad that you have looked up the facts now and agree that what you wanted already is the law of the land.

    11. Re:Blame Whom? by bluefoxlucid · · Score: 1

      No, I didn't.

      The law of the land is a corporation with 20% profit margin pays 35%. One with 5% pays 35%. Tax rates are independent of net profit margins.

      The law I suggested is a corporation with 20% profit margin pays 48%. One with 5% pays 16%. Tax rates are based on net profit margins.

      What I suggested has never been the law of the land anywhere.

    12. Re:Blame Whom? by MightyYar · · Score: 1

      A pass-through payment for a corporate entity isn't simply the corporation granting you income under contract

      OK, my mistake - I used jargon incorrectly. The audience here is more sophisticated than that, and I should know better. I don't mean literally convert C-corps to LLC or some other pass-through entity. I just mean treat the income made from a C-corp or similar (be it dividends or capital gains) as regular income.

      that's potentially billions of untaxed incomes, and a large cost to collect

      That's OK, we're giving up trillions in uncollected taxes now, held overseas. Let's not let perfection be the enemy of progress. The people who owe $40 are small potatoes anyway, and over time collection can be made more efficient.

      Well, you're wrong.

      I'm sure I have many things wrong, but tax avoidance is real. You even described several excellent bizarre maneuvers that would go away if there was no corporate tax. Depreciation would be become a GAAP quirk and would have no tax consequences at all, with no games to play. Corporations can pay people money to work or provide goods and services for them, which you tax as income. They can pay dividends, which you tax as income. They can pay interest, which you tax as income. People can sell their shares in a corporation, which you tax the profit on.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    13. Re: Blame Whom? by Anonymous Coward · · Score: 0

      Hollywood accounting Depts would beg to differ, anytime incentives are tied to profits....

    14. Re:Blame Whom? by bluefoxlucid · · Score: 1

      That's OK, we're giving up trillions in uncollected taxes now, held overseas.

      Pass-through won't stop that because that's done by not legally incurring accountable income in the home nation. The US doesn't have a law that says, "This income is not taxable." The business says, "We spent this money" and "we received this money", and they either buy from outside companies (an expense, not income to the business, thus lowers their profits) or they assign a sale in another nation to a company in Ireland (that money never appears in the accounting books on US soil, at all).

      So all of the money currently not being taxed would remain untaxed under your system.

      tax avoidance is real

      Well, yes.

      You even described several excellent bizarre maneuvers that would go away if there was no corporate tax. Depreciation would be become a GAAP quirk and would have no tax consequences at all, with no games to play.

      Not true. Depreciation isn't a bizarre maneuver; it's part of Corporate tax law: it is illegal to report that you spent $1M on a $1M machine. You have to report that over several years, or else you get the living fuck fined out of you by the IRS. The SEC then penalizes you for securities fraud.

      They can pay dividends, which you tax as income

      Currently, dividends are taxed as profit (was 35% in 2016), then taxed again when paid to shareholders as capital gains (15%), bringing the total to a 44.75% tax rate.

      Under your passthrough system, dividends are taxed at 39.6% at most. Further, if they don't pay dividends--if they put that cash in a box like Apple does--they pay 0% taxes, instead of the 35% they pay normally (in 2016).

      Apple's effective tax rate under your system would be vanishingly-small.

      People can sell their shares in a corporation, which you tax the profit on.

      That's how the law has worked for the past century or so.

      tl;dr: Nothing you describe would reduce tax avoidance; and the mechanism of eliminating corporate income tax would provide a much better tax shelter at 0% tax rate here in the US with which rich people could increase their wealth (by having the business buy other businesses, securities, etc.) without ever paying taxes. The top 1% would cease paying 40% of the taxes and instead pay around 5% of the taxes.

    15. Re:Blame Whom? by Anonymous Coward · · Score: 0

      This idea is intriguing and I would like to subscribe to your newsletter.

    16. Re:Blame Whom? by MightyYar · · Score: 1

      The SEC then penalizes you for securities fraud.

      As I said, it becomes a GAAP thing and not a tax thing.

      Currently, dividends are taxed as profit (was 35% in 2016), then taxed again when paid to shareholders as capital gains (15%), bringing the total to a 44.75% tax rate.

      This is misleading on four counts. The effective tax rate was not 35%, and dividends are often paid independently of profit. For instance, GE only recently reduced their dividend despite many consecutive losses. And even now, they still pay a dividend. You also leave capital gains out of the argument, and you are using last year's significantly higher tax rate.

      if they put that cash in a box like Apple does--they pay 0% taxes

      Good on them - their stock price will likely reflect their cash hoard and you get them on capital gains.

      Apple's effective tax rate under your system would be vanishingly-small.

      It would be zero.

      That's how the law has worked for the past century or so.

      Again this is misleading. It has only worked that way for short-term capital gains. Long term capital gains are taxed at a lower rate.

      Nothing you describe would reduce tax avoidance

      That's an absurd statement - it would go to zero... there would be no taxes for corporations to avoid. Individuals would need to do all of the avoiding, and they do not have a giant accounting department at their disposal - nor do they have the same number of lobbyists to carve out tax exemptions.

      would provide a much better tax shelter

      What shelter? Presumably rich people want to do things with their money? Tax it when it comes out of the corporation.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    17. Re:Blame Whom? by bluefoxlucid · · Score: 1

      Currently, dividends are taxed as profit (was 35% in 2016), then taxed again when paid to shareholders as capital gains (15%), bringing the total to a 44.75% tax rate.

      This is misleading on four counts. The effective tax rate was not 35%, and dividends are often paid independently of profit.

      The tax rate was 35% and dividends are paid out of profits. Dividends paid are never deductible from taxes. Corporations can hold the money in a bank account for a little while and pay dividends in loss years; however, the corporations must eventually make profitable income, retain that income as reportable income in the United States, pay taxes on that income, and so forth.

      No, depreciation doesn't change that: you simply don't have the income (you spent it) to distribute when you buy things, even if you don't really "spend" the money for tax purposes until later (that means you've already paid taxes on those expenses and no longer have the money on hand).

      The specific money paid as dividends are always exposed to the full corporate income tax marginal rate.

      For instance, GE only recently reduced their dividend despite many consecutive losses. And even now, they still pay a dividend.

      Because GE already made that money and paid taxes on it long ago at a 35% marginal rate.

      You also leave capital gains out of the argument, and you are using last year's significantly higher tax rate.

      I specifically said they pay 35%, then pay capital gains (15%) again on what's left after paying 35%.

      Good on them - their stock price will likely reflect their cash hoard and you get them on capital gains.

      You wouldn't get them on capital gains until the shareholders sold stock. Being shareholders, they can use their stock as voting rights to direct Apple to buy other companies with the tax-sheltered money held by Apple, and none of this ever gets taxed.

      Again this is misleading. It has only worked that way for short-term capital gains. Long term capital gains are taxed at a lower rate.

      I used the 15% long-term capital gains rate compounded on the 35% corporate income tax rate.

      That's an absurd statement - it would go to zero... there would be no taxes for corporations to avoid. Individuals would need to do all of the avoiding, and they do not have a giant accounting department at their disposal - nor do they have the same number of lobbyists to carve out tax exemptions.

      The individuals wouldn't be exposed to higher tax liability, and the billions and billions of dollars of income being held in accounts currently subject to tax when earned would be subject to no tax. That is: they wouldn't be subject to taxes paid by the corporation OR by any other person.

      What shelter? Presumably rich people want to do things with their money? Tax it when it comes out of the corporation.

      Nope! You hold stock (don't sell it and you don't pay capital gains) and you say, "Hey, board members, let's all vote to buy that yacht club over there!" Then you own a yacht club, a bunch of yachts, and can go boating. You don't pay one red cent in taxes through the whole transaction.

      What you do, you organize a holding company as an LLC taxed as a C-corp, and you make the yacht club a member. Then you sell that yacht club to the rich folks who own Apple and Google, and your LLC holds the money so you don't have to pay income taxes on it. You can then buy yourself a smaller yacht club start-up and wash, rinse, repeat. 0% tax rate for C-corp so hooray, no taxes ever again!

    18. Re:Blame Whom? by MightyYar · · Score: 1

      The tax rate was 35%

      The effective tax rate was not 35%. And in any case, the tax rate is no longer 35%. I'm well-aware of the double tax on dividends - that's the justification for the lower special rate, and is removal of the double tax is why I feel justified in raising it. I've already said that tax rates should be adjusted to make sure that the loss of corporate taxes is revenue neutral, so I'm not sure where you are going with this line of protest.

      You wouldn't get them on capital gains until the shareholders sold stock.

      And? I don't see the problem. Is it the deferred tax that bothers you? What about IRAs, 401(k)s and the like? And of course as you point out, they are deferring taxes right now by holding money outside of the country.

      The individuals wouldn't be exposed to higher tax liability

      Why do you say that? Their tax rates would necessarily go up.

      Then you own a yacht club, a bunch of yachts, and can go boating.

      Yes, this is obviously a part of the tax code that would need revision. Things like access to yachts, company cars, first class air travel, etc. would need to considered benefits like salary. I agree that this is not workable within the current tax code, and significant changes would be necessary. But your yacht club example can happen today, with costs written off as entertainment expenses and whatnot. It's not a new type of tax avoidance or abuse, but it does become critical to attack it more aggressively. Which, again, I contend will be easier when the government doesn't need to fight GE's accounting and lobbying departments and instead is just fighting Joe Millionaire's accountant.

      By the way, thanks for the discussion. Despite vigorously disagreeing with me and probably thinking that I'm a bit of a naive moron, you are keeping it very civil and forcing me to defend my admittedly radical position.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    19. Re:Blame Whom? by bluefoxlucid · · Score: 1

      The effective tax rate was not 35%.

      The effective tax rate is influenced by three things: a result of subsidy credits; an accounting fiction (in the case of depreciation); and tax avoidance (by incurring taxable income outside the tax jurisdiction, then reasoning that it's income even though it's not reported).

      Dividends can only be paid by way of actual, tax-accountable income: if you repatriate money which was shifted to avoid taxes, it counts as newly-accrued income and is taxed 35%. If you pay the income to shareholders directly, it's counted as regular income and taxed 39.6% (and also draws some attention from the SEC, as this is not legally accountable as dividends).

      The effective tax rate on money used to pay dividends--on that specific pile of money--is always the corporate income tax rate, no more and no less. The money that's supposedly not taxable income is also not distributable income, or was previously taxed as income because it was tied to an expense which follows a depreciation schedule and is considered to occur over several years instead of when the money is spent.

      in any case, the tax rate is no longer 35%.

      This will change soon enough, and the last taxes paid were 2017 taxes. Repeal and replace the TCJA is a major tax reform topic and will happen with any other change, so pre-2018 tax law is currently the relevant conversation.

      I don't see the problem. Is it the deferred tax that bothers you?

      No, it's that holding the stock lets you manipulate money held in corporate bank accounts to your own benefit, which means you never receive income yet you get to spend millions of dollars.

      Things like access to yachts, company cars, first class air travel, etc. would need to considered benefits like salary.

      They already are; however, because the marginal cost of an individual's use of the yacht club's resources is a fraction of the cost of the yacht itself, the individual incurs only a marginal amount of income.

      your yacht club example can happen today, with costs written off as entertainment expenses and whatnot

      Only for the marginal costs. The profits incurred to buy and sell yacht clubs and by the operation thereof, which would be taxed at 0% under your system, would be taxed at the corporate income tax rate under the current system.

      I contend will be easier when the government doesn't need to fight GE's accounting and lobbying departments and instead is just fighting Joe Millionaire's accountant.

      GE's accounting and lobbying departments are all smoking cubans on a company yacht while drinking some expensive champagne. Joe Millionaire's accountant is having an easier time covering Joe Millionaire's assets from taxation. All of these people have large taxable incomes, but not on the scale of the now-well-sheltered-in-place untaxable incomes they're manipulating with their shareholder power. They're all applauding the 0% corporate income tax rate.

    20. Re:Blame Whom? by MightyYar · · Score: 1

      The effective tax rate on money used to pay dividends--on that specific pile of money--is always the corporate income tax rate, no more and no less.

      Right, but you are trying to segregate the money paid as dividends from all of the other income. I get your point, but depending on the company it can be a very small amount of the income that actually gets paid as dividends. Apple might be extraordinary, but they reported $2.73/share in revenue and they only paid $0.73 in dividends. If you are correct, then you are only correct for around a quarter of their income. But again, none of this really matters because tax rates would be adjusted to make up for the lost corporate income. I am suggesting something that is revenue-neutral as a prerequisite. Any argument that the revenue will go down is easily rectified by adjusting rates and filling loopholes and deductions.

      yet you get to spend millions of dollars.

      Sure, you get to spend it by investing it. Same thing you can do now. Amazon has hardly paid any income taxes at all, because they have incentive to reinvest any profits. I have a buddy who very rarely shows a profit for his small business - it's something of a mistake when he does. Yes, a company will have less tax incentive to invest rather than hoard cash - but there are already some pretty strong disincentives to hoard cash. If hoarding of cash becomes a problem, I'll be the first to propose rule changes to address that. I think I could make an argument that the current tax regime already encourages companies to hoard cash overseas.

      because the marginal cost of an individual's use of the yacht club's resources is a fraction of the cost of the yacht itself, the individual incurs only a marginal amount of income.

      And so in today's regime, what happens? The Yacht is a business expense and is not taxed. How does this change for the worse then, if everything is the same?

      would be taxed at the corporate income tax rate under the current system.

      Oh, please. They'll sell the yacht club in a year where they show a loss. Or they'll play games with leases and paying with carried interest. They have whole departments just for this.

      Joe Millionaire's accountant is having an easier time covering Joe Millionaire's assets from taxation.

      Simplification of the tax code would be a necessary part of eliminating the corporate tax, I can't claim otherwise.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  12. Wrecker parts versus new by sjbe · · Score: 1

    Got one from a wrecker for 140$, if I could have waited, could have ordered the part from amazon brand new for 180$.

    Comparing prices from a part from a wreck to new parts isn't really apples to apples. The cost of the materials in the part alone almost certainly exceed the cost of labor to remove it from a vehicle and sell it. Basically if you can get the part new for comparable money to the same part out of a wreck then the person selling you the part from the wreck is ripping you off. If you could get the part "brand new" from Amazon for that much less then it is probably either surplus inventory being liquidated (or stolen inventory being liquidated) or it isn't the exact same part from the same supplier most likely. It's basically impossible to make a part cheaply enough to sell it for the same price as a part from a wreck.

    1. Re:Wrecker parts versus new by Tyr07 · · Score: 1

      Oh I was overpaying, wreckers usually charge around 40$ for it, but the usual one didn't have my model in stock. Simple as that. You can't assume what a wrecker is charging for it has any relation at all of any kind to to the actual price of the part.

      However ordering the part new from other sources than amazon is around 180$ as well, just shows the price gouging of the local market on used vehicles, which makes my point still stand.

    2. Re:Wrecker parts versus new by HornWumpus · · Score: 1

      What's the rush? AC compressor can wait, 4-60 AC (4 windows at 60mph).

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    3. Re:Wrecker parts versus new by Anonymous Coward · · Score: 0

      Don't you know? YOU'LL MELT if you don't stay within the air conditioned bubble. Go outside in weather over 20C/68F for longer than 3 minutes...and you'll be a puddle of melted goo! GOO!

    4. Re:Wrecker parts versus new by dublin · · Score: 1

      Yeah, that only works if the car is moving - try that in Austin at rush hour, since our crappy city government has been fooling themselves with the, "if we don't build it, they won't come" lie for decades...

      --
      "The future's good and the present is nothing to sneeze at." - Roblimo's last ./ post
    5. Re:Wrecker parts versus new by Tyr07 · · Score: 1

      Rofl what's with you guys? Don't you know your vehicles? It's on a serpentine belt. AC Compressor seized up. It doesn't mean no AC, it means no start engine. Everything on a single belt.

      I don't have AC as I didn't refill it yet, but I had to replace the compressor with one that was freely spinning so I could drive the vehicle around ;)

    6. Re:Wrecker parts versus new by Tyr07 · · Score: 1

      See above - serpentine belt. AC compressor seized, have to replace it with a freely spinning one or vehicle goes no where.

      I still have no AC, didn't refill it, just had to get it back on the road.

    7. Re:Wrecker parts versus new by HornWumpus · · Score: 1

      Too stupid to unplug the AC compressor clutch connector?

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    8. Re:Wrecker parts versus new by Tyr07 · · Score: 1

      Clutch and everything seized up, from the gunk that burned up when it first seized.

  13. Cross-brand Part Overlap by shatteredsilicon · · Score: 2

    That's interesting, because when different brands share the same platform with a huge parts overlap under different part numbers, you can save a fortune by cross-checking what are identical parts. For example, Porsche Cayenne, VW Touareg, and to a large extent Audi Q7 are largely the same, apart from trim and some of the engine options. But you can pick up things like air suspension components for a Touareg for a lot less than the same part for a Cayenne, even though the only difference is the part number. This is far from being an only example, too.

  14. Retail price detached from costs by sjbe · · Score: 1

    Production costs alone do not dictate the retail price - especially with vehicle parts, some of them can be kinda heavy - distribution logistics increases the price more than manufacturing sometimes...

    My point was that production costs have almost NOTHING to do with the retail price in many cases. I've seen parts my company makes being sold at a dealer for 8X what I know for a fact it cost to make them. There is some overhead in there to be sure but most of that price difference is just markups by every company that touched it along the way with the markups getting much bigger when it is a retail customer.

  15. to pay a "living wage" by Kohath · · Score: 1

    Tomorrow, will you be complaining that the business next door that only marks up parts half as much doesn't pay a "living wage"? Where is the money for beyond-economic wages supposed to come from without beyond-economic pricing to customers?

    1. Re:to pay a "living wage" by pnutjam · · Score: 1

      Car dealers don't pay huge wages either, outside maybe sales. There is enough markup that car dealers have multiple laws written specially for them and they have historically been one of the powerhouses of local politics, right alongside property developers.

    2. Re:to pay a "living wage" by Shotgun · · Score: 1

      So the answer is "more regulation"? With you-know-who being a part of the regulation writing process?

      --
      Aah, change is good. -- Rafiki
      Yeah, but it ain't easy. -- Simba
    3. Re:to pay a "living wage" by pnutjam · · Score: 1

      Regulations at a national level are often necessary for just this reason. Big fish in little pond's.

    4. Re:to pay a "living wage" by Anonymous Coward · · Score: 0

      Shitty troll is shitty

  16. Honest Merchanting Laws? by resistant · · Score: 1

    This behavior is why we need no-nonsense laws forcing car manufacturers to release the exact specifications, including manufacturing costs, for all of their car parts, right down to the weird little plastic part that holds the windshield shade in place up after it's been flipped down or up. If OEM prices for replacement parts rise too high, then third-party manufacturers who've been watching like a hawk with sophisticated analysis software for this kind of piggish gouging can jump quickly into the fray with better, much less expensive alternatives. I'm strongly libertarian in most realms, but raping consumers once they're stuck with their expensive investments is just nasty and strikes me as inherently fraudulent.

    By all means let the robber barons play fast and loose with their prices as long as they understand that the free market will then smack them down fast and hard. That specifically means no disingenuous games with stuffing proprietary software and firmware into many automobile parts and then using the DMCA to forbid exact duplication of those parts. It also means design patents are null and void against third-party suppliers for precise drop-in replacements. By selling their products to the public, car manufacturers have automatically agreed to forgo shithead games with patents, embedded firmware and software, or any other conceivable method as part of basic consumer protections that guarantee that vehicle owners will be able to make the most of their private property without subsequently running into piggish grunting and squealing from the manufacturers as they grab for every last possible dollar.

    More than that, having tried once to rape car owners on any replacement part should lead to a cloud-based red-flag warning on all parts thenceforth from that manufacturer. "Warning: This manufacturer does not adhere to the guidelines for pricing replacement parts as set down by the American Fair Commerce Association. Parts from third-party suppliers are likely to cost substantially less."

    (Yeah, I know the DMCA parts aren't exactly related to the original article, but it's part and parcel of the whole stinking load of slobbering greed.)

    --
    A truly excellent pizza parlor is a delight unto the heavens. Treasure the sauce and the toppings!
    1. Re:Honest Merchanting Laws? by Anonymous Coward · · Score: 0

      It still wouldn't make a difference, people are just plain lazy with maintenance.

  17. Re: Late Stage Capitalism by Anonymous Coward · · Score: 0

    No, other companies are jealous of how Tesla has managed to get away with crippling independent service of their vehicles. If GM could force you into the dealer for work, they would. Somehow, Tesla manages to do this.

    Heck, Tesla even refuses to replace faulty airbags in vehicles that have been independently services/repaired. Took the NTHSA beating on them for them to end up doing the work begrudgingly. Imagine if Toyota did that!

  18. THE JOHNSON ROD by gDLL · · Score: 1
  19. The robots are taking over! by mileshigh · · Score: 2

    The story here is actually that some highly-skilled, white-collar jobs got automated out of existence.

    Figuring out what the traffic will bear has been going on since forever. Used to be done by people, now software automates it and maybe takes more factors into account.

  20. Parts Pricing by tquasar · · Score: 1

    A friend worked at a Ford dealer, he sold me parts for forty percent off list price and there were lower prices listed. Most of the profit is from parts and service, not vehicle sales. 4X mark-up is common.

    1. Re:Parts Pricing by Anonymous Coward · · Score: 0

      This is common place everywhere. I used to work at a couple of the large Auto Part chains. Both chains had store within 5 miles of the stores I worked with wildly different prices. They would price match other stores too. Whenever you are pricing auto parts you better check other zip codes near you. Works best if you can figure out which store is their hub store, or warehouse store. Next best bet is the lowest income area. For example the store I worked at sold a radiator for my Jeep for $199, the store 5 minutes up the road, $98.

      Every industry does this, when buying airline tickets I have to try using a VPN to see what price I get as an out of towner. When checking prices online for things while shopping you get different prices based on browser type (mobile, etc). Thsee stories are good, but none of this should be new to anyone.

  21. Odd Coincidence by Jfetjunky · · Score: 1

    I'm dealing with this issue now refurbishing a machine. There are two plastic bushings that allow a variable speed sheave/pulley to slide up and down. (Basically a CVT, but the ratio is changed manually) They charge $100 for a simple nylon bushing and there are two of them. Two nylon bushings cost more than the 5 precision, brand name bearings I've already replaced. And I know exactly why. They wear out. They know it, and they are making a handsome little profit on selling replacements.

    1. Re:Odd Coincidence by whoever57 · · Score: 1

      Time to buy a 3-D printer?

      --
      The real "Libtards" are the Libertarians!
    2. Re:Odd Coincidence by Jfetjunky · · Score: 1

      While that would certainly be handy, I don't think a printed part would hold up for long in there. Even if I printed it with Nylon, which is the original material. And to get decent quality I'd probably pay a fair bit more for the printer than just shelling out for the bushing. Although I'd have a printer afterwards..

    3. Re:Odd Coincidence by HornWumpus · · Score: 1

      Nylon can be machined. Round bar stock to match the OD, Drill on lathe to match the ID. Saw and sandpaper to smooth the ends if no lathe.

      Find a polyurethane bushing by size. Energy Suspensions. Modify it to fit.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    4. Re:Odd Coincidence by Jfetjunky · · Score: 1

      Yeah, I've thought about making my own. This bushing is splined on the ID too. Not sure how to pull it off without a shaper or broaching setup...

    5. Re:Odd Coincidence by HornWumpus · · Score: 1

      You can cut gears with a lathe. Broach with a cutter in the toolholder, using hand power, with the brake on. Have to put index marks on your chuck.

      Youtube has videos that show the tricks.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
  22. This surprises you - why ? by Anonymous Coward · · Score: 1

    You live in a capitalist society - the primary function of ANY company is to generate profits and you don't think they'll charge as much as they can get away with ? You'd like them to charge you a fair price that relates to the cost of production & transporting including a little profit and sprinkling of Tax ??? Fairness in life, sadly, is limited to the Disney universe! It's their purpose to make as much profit as possible - and they make it all from you ðY

  23. Cool. They are years behind drug companies. by DirkDaring · · Score: 1

    or maybe decades. Lots to learn.

  24. thats why that broken tail light you replaced by FudRucker · · Score: 1

    costed 60 bucks despite it being made from 2 dollars worth of plastic

    --
    Politics is Treachery, Religion is Brainwashing
    1. Re:thats why that broken tail light you replaced by Anonymous Coward · · Score: 0

      Headlight was $200, plus labor to install. But insurance paid for it, so I didn't press.

  25. Other anti-repair software games by Tablizer · · Score: 1

    There's lots of similar scams. Generic repair shops couldn't fix our dealer-installed car alarm because the car manufacturer charges an arm and leg for the diagnostic software, which is too expensive for most shops. It's probably cheaper to have one installed from scratch.

    We had a similar situation with our refrigerator. A repair shop has to deal with many brands, and purchasing diagnostic software from the manufacturer is too expensive for many of them*. If you repair say 15 brands, you have to purchase/rent diagnostic software from 15 manufactures, who love to jack up the price. This makes it so you have to call the manufacturer's OWN service, which is expensive.

    If I suggest laws to reduce that kind of stuff, one will call me a "socialist", but if capitalists play games to avoid competition, then capitalism grows just as wasteful and noncompetitive as gov't. Throwing away otherwise perfectly good things because software games jack up the prices is bigly shameful, both from an environmental standpoint, and a consumer wallet standpoint.

    That's not capitalism, that's crony capitalism. Saving $200 in tax but paying $800 the same year in repair costs for car, fridge, etc. repairs, or having to toss and buy new does not seem logical, Captain.

    * The fridge has embedded chips that take readings from all the sensors and adjusts fans and temperature based on the readings. It's hard to diagnose many problems without dealing with the control software. A fridge doesn't require rocket science, but if you make it need rocket science, you can charge rocket prices to repair it.

    1. Re:Other anti-repair software games by HornWumpus · · Score: 1

      Your own fault. You bought the add-on from the stealership. Are you stupid? No, well you learned, didn't you?

      Don't make the same mistake on navi next. Yearly software updates cost $1 less than a complete aftermarket system.

      Refrigerator? Same, you wanted the fancy one. Don't flop you dick onto a chopping block, then complain.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    2. Re:Other anti-repair software games by Tablizer · · Score: 1

      Your own fault. You bought the add-on from the stealership.

      We bought used from a relative; it was otherwise a good deal.

      Refrigerator? Same, you wanted the fancy one.

      I believe software central control is standard practice now, even on the low-end. Chipification is the trend.

    3. Re: Other anti-repair software games by maestroX · · Score: 1

      Why pay for navi. Man apps do it better with realtime updates, I can see an ambu before iets in my mirrors

    4. Re:Other anti-repair software games by dublin · · Score: 1

      And yet, things used to be built to last. Our washing machine started leaking the other day, and I went in to the parts dealer to see if it was worth fixing it. I mentioned it was old, and the guy behind the counter said, "How old? More than seven years?" I laughed and said, "Seven years?! No, more than 30!" and he said, "Oh hell, yeah - fix it - those things last forever! The new stuff is lucky to make eight years, especially now that everything's sh** made in China. So I bought a new tub, installed it in a couple of hours with the help of a YouTube video, and we're probably good for another decade or so....

      --
      "The future's good and the present is nothing to sneeze at." - Roblimo's last ./ post
  26. Compatible parts by dargaud · · Score: 1

    So because of this there's a huge potential market for compatible spare parts. Are there places where I can type a VW part number and get the equivalent alibaba part or somesuch ?

    --
    Non-Linux Penguins ?
    1. Re:Compatible parts by AndroSyn · · Score: 1

      Are there places where I can type a VW part number and get the equivalent alibaba part or somesuch ?

      Well you are likely not going to find third party parts for many things in a VW, especially electronics related. However, you can find a lot of used parts on ebay just by searching for the part number alone. However there is often a compatible part number that is slightly different too, depends on the part etc. So you'd need to be careful.

      Partslink24 is a good resource(if a bit spendy for a subscription) to look up part numbers based on VIN. Though things like your transmission control modules might need to be recoded with something like VCDS if you buy a used one.

  27. What is and isn't standard industry markup... by Anonymous Coward · · Score: 0

    The automotive standard is 30% markup on parts, but... Some new parts are up to 200% markup, and some re-manufactured parts (alternators, half-shafts, etc) are well above 1000% markup. If it's German... add another 1000% for the badge.

  28. Lemonade Stands by thechemic · · Score: 1

    Ever had the nagging suspicion that your local lemonade stand is raising prices on hot days just because it can? Nothing to see here...

    --
    Let's make like a bird... and get the flock outta here.
  29. Cheapest TCO by sjbe · · Score: 2

    Makes me wonder what automobile make is the best for TCO, over the long haul.

    Generally speaking the one with the cars that break down the least. My guess would be Toyota would be pretty high on the list of best TCO. They tend to top most reliability surveys.

    1. Re:Cheapest TCO by ctilsie242 · · Score: 1

      Reliability is one metric, but all car brands across the board are very reliable. From there, it is parts and service.

      A good example of this is a Ford Transit versus a Mercedes Sprinter. The Sprinter is very reliable, but if something happens, you spend Mercedes prices for parts and service. For example, if you want an additional key, expect to pay $200, and $200 for someone to program it in at the dealership. The Transit key is $40 and you can program it in yourself.

  30. Not enough volume by sjbe · · Score: 1

    So because of this there's a huge potential market for compatible spare parts. Are there places where I can type a VW part number and get the equivalent alibaba part or somesuch ?

    It's not that easy. There are about 30,000 parts in a typical car and a substantial number of these parts are not shared with other cars. The number of car parts that one could do enough service volume to justify the engineering time to replace them is a pretty small number. Plus most OEMs factor in buying a bunch of service parts. And you have to compete with the used parts market (stuff from wrecks). The car parts market is SO fragmented it's really hard to get any decent economies of scale on a given part.

    1. Re:Not enough volume by ravenscar · · Score: 1

      I'm not sure what you mean by a substantial number. Interior and exterior panels as well as trim, glass, and parts of the harness are often unique. Most all other parts are shared across a large number of vehicles and manufacturers. Engines, solenoids, alternators, electric motors, switches, ICE, sensors (MAP, MAF, parking, etc.) cameras, wipers, fuel tanks, most suspension components, wheels, tires, fuel pumps, turbos, radiators, heater cores, ac units, batteries, brakes, spark plugs, oil filters, air filters, timing belts and chains, transmissions, and on and on are shared across platforms. In addition, the manufacturer of your vehicle probably fabricated very few of the items on the preceding list - most coming from OEMs like Denso, Bosch, NGK, Alison, Fuji Heavy Industries, Nissin, Autolite, and others. Heck, a number of manufacturers build several cars/light trucks on the exact same or slightly modified chassis.

      If you can find the OEM that built the part for your car manufacturer you can, with a little work, often get the same part (without your car brand's logo of course) for a fraction of the price. Dealers hate this, of course, and appear to be willing to make great efforts to tell you doing so will void your warranty.

      As you said, there are still a ton of parts that are fairly low volume, but most of the common parts subject to replacement due to wear are available elsewhere already.

  31. Sounds Familiar by Humbubba · · Score: 1
    Before they got computers, a nearby auto parts store had racks of part books. The price books were actually giant spreadsheets; page after page had part numbers in the first column, followed by about ten columns with various prices for the same part. One price for garages, another for qualified mechanics, then Insurance, do-it-yourselfs, vets, etc.

    Until this story, I thought electric vehicles would be cheaper to maintain: fewer moving parts, less wear, easy to replace and repair. Now, I'm not so sure.

    1. Re:Sounds Familiar by RubberDogBone · · Score: 1

      Many parts stores still have the paper catalog books in the back. Because the fancy computer systems can and do go down. I worked in the auto parts industry and still keep a toe in that water.

      But there is nothing wrong with the pricing model you mention. Of course, we gave better prices to businesses and garages who brought us a lot of business. Sometimes they got huge discounts. Sometimes not. And not every jobber or shop got the best prices. It was our choice on who got what. Retail customers walking in off the street did get the highest prices most of the time. But not always. Retail customers get sale prices. Jobbers did not and sometimes paid more than a retail price on some items.

      The bottom line is that the best prices usually went to the best customers. All you needed to do to get the best prices is buy a lot, ensure we knew you were also shopping our competitors, and pay your bills on time. Do that and you can buy brake pads for $12 and resell them to your customer for $70.

      --
      Sig for hire.
    2. Re:Sounds Familiar by Humbubba · · Score: 1
      RubberDogBone said

      ...The bottom line is that the best prices usually went to the best customers...

      So, it's graded pricing based on market data, more or less. They say the marketplace is smarter than we are, but it sounds like some customers know how to work the system. And I thought urgency determined market value. Stupid me.

      The following is not a criticism: I wonder how all this fares with Accenture software's "perceived value" or even just a Google search?

  32. Tools by Chelloveck · · Score: 1

    Software is no more to blame then pencils and papers were to blame for the same practice decades ago. It's just a tool. Blame whoever's using it for this.

    --
    Chelloveck
    I give up on debugging. From now on, SIGSEGV is a feature.
  33. Honda by sjbe · · Score: 3, Interesting

    Are Honda's expensive to maintain?

    As a general proposition they're generally pretty affordable to maintain. They're generally pretty high on the reliability charts and speaking from first hand experience the maintenance on them is generally pretty reasonable in comparison to other makes. I've got a Honda with around 180K miles on it and I expect to get to 250K baring something odd happening.

    1. Re:Honda by Anonymous Coward · · Score: 0

      I think it depends on the model. The '04 Pilot was hugely over-engineered and appears to require little in the way of maintenance. The '05 Civic was under-engineered in some areas (e.g. front brake pads the size of a postage stamp and a frame that is as rigid as a block of Jell-O outdoors on a warm sunny day) and requires frequent brake pad changes and required aftermarket parts to true up the rear wheels. I'm confident the Pilot will make it to 250k miles (and I'm really thinking 400k pretty easily); the Civic will be lucky to break 200k.

    2. Re:Honda by mjwx · · Score: 1

      Are Honda's expensive to maintain?

      As a general proposition they're generally pretty affordable to maintain. They're generally pretty high on the reliability charts and speaking from first hand experience the maintenance on them is generally pretty reasonable in comparison to other makes. I've got a Honda with around 180K miles on it and I expect to get to 250K baring something odd happening.

      250K... Why would you get rid of a Honda that's barely broken in?

      Honda Genuine(TM) parts have always been expensive, especially as models get superseded. Any decent mechanic worth the grease under his fingernails knows to use non-genuine parts (which are often just the same parts that are sold in a box that doesn't say Honda Genuine(TM) parts).

      My first car was an EK Honda Civic, I bought it at 377,000 KM and sold it with 398,000 KM on the clock. Probably past half a million KM's by now and still going strong.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
  34. Exhaust by sjbe · · Score: 1

    A while back, Toyota claimed I needed a new exhaust pipe for my Echo - $2,900 for the part alone.

    Surprisingly the dealers generally aren't competitive on exhaust components. Usually cheaper to go to an exhaust specialist like Midas or similar. I actually had a dealer tell me that one time when I needed a new muffler. He was honest that they could do it but I would (and did) save a lot of money going to a specialist for that.

    1. Re:Exhaust by geekmux · · Score: 1

      A while back, Toyota claimed I needed a new exhaust pipe for my Echo - $2,900 for the part alone.

      Surprisingly the dealers generally aren't competitive on exhaust components....

      Uh, $2900 for an exhaust tubing repair? There's a difference in being competitive vs. bending a customer over an ass-raping them with their own wallet.

      Even a full cat-back exhaust replacement couldn't justify that fucking price tag.

    2. Re:Exhaust by Anonymous Coward · · Score: 0

      seems about the price i paid; its not just a muffler, or exhaust pipe, or a part from engine to muffler, or a seperate catalytic converter.

      all that shit is one huge part.

      and why isnt it stainless steel or fking titanium?

      idk... $GREED$

    3. Re:Exhaust by Raistlin77 · · Score: 1

      It's unfortunately typical. My local Dodge dealer quoted me $249 to change a fog light bulb when I had my Challenger in for regular service. A bulb that I could get on my own for $15, but I didn't feel like pulling apart half of the underside plastics just to get to it. I very nicely told them where they could stick that quote. If I hadn't had free maintenance for 6 years thanks to a kick-ass salesman who threw in a Mopar package on the deal, I wouldn't even take it to them for service in the first place. Fucking thieves.

    4. Re:Exhaust by vlad30 · · Score: 1

      If I hadn't had free maintenance for 6 years thanks to a kick-ass salesman who threw in a Mopar package on the deal,

      That is why your paying $249 to change a bulb and you probably paid for the free maintenance upfront plus I bet they find something to charge you for when you come in for that "Free Maintenance"

      --
      Your'e all thinking it, I just said it for you
  35. Wiring in cars by sjbe · · Score: 1

    Why are there huge wiring harasses in the first place? Wouldn't it make more sense to have many smaller harnesses that are easier to replace small sections of without having to disassemble half the car?

    Actually it would be more expensive because of the component costs. Plus it's actually pretty rare that you have to replace an entire harness if it is low voltage. You'd spend a lot of money modularizing the harness which would be hard for the manufacturer to recoup. That said, a lot of harnesses are reasonably modular where possible/practical. But wire is cheap and connectors are not.

    There also is the problem of lack of standardization of connectors and terminals and other parts. There are literally tens of thousands of different terminal options and connector options, the vast majority of which are unnecessary and redundant. But no one is in a position to force standardization so we end up with stupidly fragmented design choices.

    What actually might make sense though would be for the various automakers to come up with a standard for data transmission (think firewire or similar and god no not CANBUS) so they could use standardized cables and connectors throughout instead of designing a custom harness for every vehicle. Then you just worry about lengths and software. The component cost would be somewhat higher (esp at first) but in the long run it would make power and data in cars much easier to deal with.

    1. Re:Wiring in cars by brantondaveperson · · Score: 1

      Two-wire ethernet might fit your 'universal data bus' idea. But the car's ECUs would still run proprietary protocols anyway.

  36. Put blame where it belongs; Insurance. by geekmux · · Score: 1

    "...If a brand badge or other component looked expensive, Partneo would suggest raising the price up to a level that drivers would still be willing to pay."

    Uh, the price that drivers are willing to pay? What utter bullshit.

    Cars are so damn expensive these days that anything other than the smallest of fender benders will warrant a call to your auto insurance provider in order for them to pay for it. Pricing has jack shit to do with driver tolerance, and has everything to do with how insurance companies have come to accept these insane costs for parts and repairs. If insurance wasn't so damn willing, then auto manufacturers would likely be left with little choice but to keep prices reasonable.

  37. Not a concern of theirs by sjbe · · Score: 3, Interesting

    The harness is easier to install during production if it has as few connectors as possible.

    Speaking as someone who makes harnesses for OEMs, minimizing the number and variety of connectors does not appear to be a substantial concern of the automakers. You would not believe how fragmented the wire harness industry is.

  38. "Ever had the nagging suspicion that your prospective employee was charging outrageous prices for his salary, simply because he could?"

    Everyone does this (unless there is some kind of charity element).

    When you do it with your labor, it's savvy job hunting. When a retailer does it with stuff, it's a heinous evil ... somehow.

  39. Do you like overpaying? by sjbe · · Score: 1

    Then why do you care what the retailer charges?

    Because sometimes I'M the one who has to pay the absurd markups. I also care that you don't get taken to the cleaners too albeit somewhat less for obvious reasons. I don't begrudge anyone making a decent profit. But let's not pretend that car repair shops have a sterling reputation for honest business practices. Just because someone could get away with taking advantage of someone doesn't make it right to actually do it.

    1. Re:Do you like overpaying? by bobbied · · Score: 1

      Ah... Well, I'm not justifying folks taking advantage, but that's how the free market works, and I'd rather have the free market's advantages. If a retailer takes advantage of me (and they have) I just don't go back. I don't buy anything at Best Buy for that reason, I don't even look, because I believe they took advantage of me at one point and didn't make it right when I asked. I vote with my dollars now. The market fixes these things... Eventually...

      What I'm really saying is that I'd rather let the free market fix issues like this because the alternative solutions are worse. Government market controls don't fix these problems, because in that case you'd be sitting in your broken car because that $500 harness worth $4 in parts would not be in stock, anywhere at any price.

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    2. Re:Do you like overpaying? by bingoUV · · Score: 1

      ... free market ... free market's

      Aren't you forgetting that a "free market" is predicated on a symmetry of information between buyer and seller ?

      --
      Bingo Dictionary - Pragmatist, n. A myopic idealist.
    3. Re:Do you like overpaying? by bobbied · · Score: 1

      ... free market ... free market's

      Aren't you forgetting that a "free market" is predicated on a symmetry of information between buyer and seller ?

      No it's not... Free markets are predicated on being "free" and "markets" and not forcing prices on anybody. Buyers must be free to choose products they are willing to buy at a given price and sellers must be free to sell the products they wish to provide for the price they can get buyers to pay. It's only a free market when both buyers and sellers are free to choose. Free markets are predicated on choice begin free, which doesn't always mean information is shared..

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
    4. Re: Do you like overpaying? by bingoUV · · Score: 1
      --
      Bingo Dictionary - Pragmatist, n. A myopic idealist.
    5. Re:Do you like overpaying? by dcw3 · · Score: 1

      Where on Earth did you get that from? Take it back, because it's false.

      --
      Just another day in Paradise
    6. Re: Do you like overpaying? by dcw3 · · Score: 1

      Your link says nothing about free markets being based upon "a symmetry of information between buyer and seller "

      Try again.

      --
      Just another day in Paradise
    7. Re: Do you like overpaying? by bingoUV · · Score: 1

      What is the third central assumption ?

      --
      Bingo Dictionary - Pragmatist, n. A myopic idealist.
    8. Re: Do you like overpaying? by dcw3 · · Score: 1

      In economics, perfect information is a feature of perfect competition. With perfect information in a market, all consumers and producers have perfect and instantaneous knowledge of all market prices, their own utility, and own cost functions.

      Perfect information doesn't exist in the free market. Nor does perfect competition.

      --
      Just another day in Paradise
    9. Re: Do you like overpaying? by bingoUV · · Score: 1

      And perfect "free market" exists ?

      --
      Bingo Dictionary - Pragmatist, n. A myopic idealist.
    10. Re:Do you like overpaying? by bingoUV · · Score: 1

      Why do you think it is false ?

      --
      Bingo Dictionary - Pragmatist, n. A myopic idealist.
  40. Don't Forget The Wrecking Yard Option by Java+Commando · · Score: 1

    It makes better financial sense to buy, say, a ~10 year old used car, and then visit a wrecking yard whenever you need a non-engine related part. Last year I bought a 2.5 generation Honda CR-V, a model that's known for reliability, safety, and relative efficiency. It was also a pretty common car, so there are plenty of specimens at my local wrecking yards to secure parts from. When you buy parts from a yard, you're reducing waste by virtue of reusing, and you might be shocked how inexpensive many of these parts are. And they're all genuine manufacturer parts, so you know they'll fit properly. A wrecking yard is an excellent way to go, if you can.

    In other cases I often use third party parts, as long as I'm confident that they're of comparable OEM quality. Bought brand new headlight assemblies for my CR-V on eBay, for instance, and it probably cost half as much as Honda OEM. They've been great so far, a year into service, and you wouldn't know they didn't come with the car. They look and perform 100% original...

  41. I'm having a hard time understanding. by Anonymous Coward · · Score: 0

    Auto makers design and assemble cars. Parts manufacturers manufacture parts (for *all* auto makers). How could Auto makers raise spare parts prices?

    Oh... Are some people stupid enough to get service at the dealer?

    Cars are a pile of commodity parts. I worked at a luxury manufacturer for more than 12 years. It's the same stuff that's in a Kia. They just add more sound proofing and give it a bigger engine.

    1. Re:I'm having a hard time understanding. by Anonymous Coward · · Score: 0

      Auto makers design and assemble cars. Parts manufacturers manufacture parts (for *all* auto makers). How could Auto makers raise spare parts prices?

      Most parts makers do NOT make parts for all makes and models. I don't know where you got this absurd idea from. Sure there are some parts that are aftermarket that are made by multiple manufactures, these are usually consumables though.

      Most of the the electronics for example, you're likely going to be stuck with OEM parts. You might be able to find some aftermarket parts for your particular make/model(think performance parts). Usually though, said vendor probably only makes for one or two makes as they tend to be smaller operations.

  42. ode to the death of romance by epine · · Score: 1

    This is capitalism doing what capitalism does. And it's not entirely a bad thing, either.

    If Saab killed their automotive brand (this was mooted in another post I skimmed) by overpricing replacement parts, perhaps that was a rational market response (and implicit exit strategy). Perhaps they invested short-term cream windfall in other lines of business to great effect.

    The whole point of capitalism is to let people screw their own pooch, if they are so inclined, because the view over the fence is generally full of shit. It's just human nature to underestimate the complications of other people's circumstances almost 100% of the time. Never heard at the water cooler after a natural experiment in trading places: "OMG! This is way easier than I expected it to be!" The other side of capitalism is that every action provokes a reaction, not necessarily equal and opposite (overreaction has long been a crowd favourite).

    This pricing software exploits a fundamental asymmetry between the average car owner, and the industry as a whole. The rational response of the consumer is to flee the increasingly tilted asymmetrical power relationship—by not owning their own car in the first place. As car ownership becomes increasingly concentrated—in the hands of professional Uber drivers, ride-sharing fleets, weekend rentals, and leasing agreements—this asymmetry shrinks again.

    Often this kind of pointed exploitation exactly precedes such an industry shift (because the incumbents see it coming, anyway, for other reasons; there's not a soul remaining in the automotive industry who doesn't daily hear the loud footsteps of the see-it-coming train).

    Even so, private vehicle ownership has been equated to personal freedom by Madison Avenue for so long now, that this all does come as a shock, somewhere deep down. Of course, we all know that Madison Avenue only traffics in captive freedom, from the get go. I mean, we buy the products, but we're not dumb.

    Even so, the unpleasant sound of tight fingers collapsing the trachea of romance does register as a shock, somewhere deep down.

  43. Good god by RubberDogBone · · Score: 1

    Something is worth what someone is willing to pay. That's all.

    It sounds like Partneo has automated this and maximized it, versus leaving it up to people to estimate and update. OH WELL.

    The rule remains the same.

    I have worked in the auto parts industry and all of the brands mentioned are A) known for poor reliability and thus they NEED more parts more often than most cars, and B) they are all foreign to the US market which tends to make the prices higher as well, at least for the Land Rover and Jaguar models sold here.

    Many Nissans are also sold as Renault. But Nissan parts in the US don't carry a premium.

    Commentary: Many Jag and Land Rover vehicles have very low resale value in the US and end up reselling as used cars into poorer areas where they, along with Mercedes, Lexus, Infinity, BMW, Volvo, etc, are just obtainable to people with low to moderate income, and such cars are perceived as a status symbol and an exaggeration of the owner's weath. All is fine with this except many of these cars DO have expensive repairs and parts and some require specialized mechanics with the proper computers and tools. And nobody in these lower income areas is prepared for the sticker shock when they find out their BMW needs six new fuel injectors at $400 a pop or the water pump has failed and most ot the front of the car will need to come apart to work on it.

    They figured they got a deal on a sporty import car. They did not expect the cost to own, whereas many of these cars were actually made and originally sold with the idea that the owner would simply have a mechanic to do these things and not even worry about the costs. Pockets so deep, you don't even care. You just tell your mechanic to fix it.

    So when buyers like the ones in the poor areas complain about the parts costs, it's really their own fault for not taking that into consideration when they bought the stupid car. Anybody in the parts business could have also told them which brands are notorious for needing a lot of repairs and expensive parts.

    --
    Sig for hire.
    1. Re:Good god by avandesande · · Score: 1

      If you are willing to do your own research and work it's not that bad. I don't care about status symbols but my BMW is fun to drive :)

      --
      love is just extroverted narcissism
  44. Accenture software by Anonymous Coward · · Score: 0

    > Jaguar Land Rover, Peugeot, Renault and other automakers have been using Accenture software (Partneo) that recommended price increases for spare parts based on "perceived value."

    Recognize the name? Accenture were formerly known as Arthur Andersen the accounting firm behind the Global Financial Meltdown. Changed their name to avoid the bad publicity, but cunts are still cunts.

  45. $600 break pads because apartment living. by Anonymous Coward · · Score: 0

    Thanks Subaru. Had I had a proper garage and jack stands like my dad did I coulda done it for $60.

    Next time Iâ(TM)ll check non dealer shops and save some but with homes being so expensive I canâ(TM)t really afford a garage at least till I find a good job in a cheap market.

  46. Honda? by thesupraman · · Score: 1

    I think you miss-spelt Audi ;)

  47. Regulation != Price controls by sjbe · · Score: 1

    What I'm really saying is that I'd rather let the free market fix issues like this because the alternative solutions are worse.

    While I'm by all means a proponent of free markets there are some cases where you do need the government to step in. Fraud, deception, and collusion are some of the cases where it is necessary. I don't have any problem with honest brokers charging what-the-market-will-bear prices. The problem comes when they start taking advantage of people who aren't in a position to defend themselves or worse when they start colluding to eliminate competition. People shouldn't have to be experts in car repairs to have a reasonable expectation of receiving good service for a fair price and I'm sure you know damn well that people get ripped off by car repair shops routinely.

    When you have your broken car up on a lift it's a little bit like a surgeon negotiating prices with you once he's got you on the operating table and opened up. You're not really in a position to negotiate at that point and the repair shop knows it. Good luck getting the free market to work in your favor at that point.

    Government market controls don't fix these problems, because in that case you'd be sitting in your broken car because that $500 harness worth $4 in parts would not be in stock, anywhere at any price.

    I think you are fearing something far more heavy handed than is necessary. I'm not talking about government price controls (a stupid idea in this context) and never even hinted at anything similar. But when a ground of automakers are tacitly colluding by (wink, wink) all using the same software "independently" to price discriminate then that is a problem. That violates anti-trust regulations most likely. Now we have companies effectively forming a cartel and breaking the market. The role of the government is to keep the competition honest, vigorous, and ongoing which should be possible here. Heavier regulations should only come into play when it is not possible or practical to have a properly competitive market (like with non-elective health care, utilities, or law enforcement for example). I'm arguing FOR keeping market forces working by having the government stop those who would prefer less competition.

    1. Re:Regulation != Price controls by bobbied · · Score: 1

      Collusion is illegal already so we don't need anything new here. Fraud is also illegal. If these companies colluded or engaged in fraud, the law enforcement part of government needs to engage and deal with it.

      We don't need anything new here though.... And I'm arguing that apart from enforcing current law to keep it fair, we don't want to do anything to disrupt the free market because the net result of government intervention isn't good for anybody.

      Auto repair shops are rife with fraudulent practices that are hard to prove, but this isn't universally true of all auto shops. Many are honest brokers and are trying to serve their customers needs. If you think your shop is ripping you off tell them so and if they don't deal with your issue find another or do the work yourself. The free market has a way of fixing this kind of thing... If the fraud is exceptionally bad and provable, complain to the police and BBB or file suit in small claims. Just rest assured that fraudsters will eventually be dealt with in the marketplace.

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  48. Generalizations by sjbe · · Score: 1

    I think it depends on the model.

    Of course it does. That's why the phrase "as a general proposition" is at the start of the post. In GENERAL Honda vehicles are among the more reliable and affordable to maintain vehicles out there. Every automaker has exceptions but some have fewer than others.

  49. Bulkhead connectors by sjbe · · Score: 1

    I don't know about a Nissan Frontier, but my 1989 240SX had a "super multiple junction" at the firewall that avoided having to do that.

    It's called a bulkhead connector. They're a good and unfortunately underutilized idea, mostly because they tend to be rather expensive. It's not unusual for a weather sealed bulkhead connector with 30 positions to cost $15-30 wholesale for each of the mating halves. A 100 circuit bulkhead would be VERY expensive. A big OEM could negotiate that price a lot lower but regardless the cost is relatively high compared with the cost of paying someone $15/hour to feed the wires through. Plus it isn't just he connector, you have to terminate (and possibly seal) each of the wires which adds additional cost. And you have the additional engineering costs too AND you have to maintain additional part numbers.

    So it's a good idea that tends to get tanked by the economics. It would be a LOT cheaper and more common if wire harness parts were more standardized than they are but as I'm typing this I'm looking at a bookshelf full of catalogs of wire harness connectors and terminals. There are SO many more parts than are actually reasonable or necessary but very little is standardized so there is little chance for economies of scale to do their thing and drive prices down.

    1. Re:Bulkhead connectors by drinkypoo · · Score: 1

      The VAG solution used in my A8 (and presumably lots of other VWs, but I wouldn't know yet) eliminates the need for either the weatherproof bulkhead connector AND the single large connector. Indeed, it's actually an advantage to eliminate it. Instead, there are multiple connector holders in the box which can be filled or not, and the connectors themselves of course can have pins installed or not. Audi then packaged each vehicle with a standard harness which is in all vehicles, a national harness which is country-specific, and accessory harnesses. As I understand it, these harnesses were taped together on the bench, then installed together. At the point where they make their egress from the interior to the underhood "e-Box" enclosure, they just get snapped into place — and of course they are all color-coded with appropriately garish combinations which are difficult to mistake. Naturally, they also have unique pin arrangements that make them somewhere between difficult and impossible to misconnect.

      When I got into my 1989 240SX and found the SMJ, I was ecstatic, but VW put their superior arrangement into the 1994 A8...

      In my book it'd actually be better to put the PCM inside the vehicle (as Nissan does) but make the connections inside a box like Audi put everything into in my car, which would then only contain connectors, relays, and fuses. I like keeping the computer where it's safe and cozy.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  50. Yeah a metric set. by Anonymous Coward · · Score: 0

    You're such a moronic asswipe.

  51. Unfortunately....... by Anonymous Coward · · Score: 0

    ...knowing how to change the oil doesn't grant me knowledge how to rebuild my motor.

  52. Boredom by sjbe · · Score: 1

    250K... Why would you get rid of a Honda that's barely broken in?

    Ha! Honestly? Boredom and fuel economy. It's a fine vehicle (a Ridgeline) and in good shape but I've had it for close to a decade and I'm getting a little tired of it. Probably will drive it for another 2-3 years and then look for something different. Plus the fuel economy for the horsepower isn't very good. Around 17-20mpg and I can get a half ton pickup these days that gets over 30mpg so that's pretty poor for 250HP. I'm kind of surprised Honda hasn't come out with a hybrid version of the Ridgeline because I would definitely consider upgrading to that if they did it right. But instead they made a boring pickup version of a Pilot which is fine but unremarkable.

    I did have to replace the engine on it about 80K miles ago due to rod knocking but the replacement cost me $3000 and only had 8K miles on it so I expect to be able to drive it for a long time if I want to.

    Honda Genuine(TM) parts have always been expensive, especially as models get superseded.

    As a general proposition all OEM branded parts are relatively expensive. Honda is par for the course here but the good news is that you don't generally need a lot of parts because it doesn't break much.

  53. Standardization by sjbe · · Score: 1

    Instead, there are multiple connector holders in the box which can be filled or not, and the connectors themselves of course can have pins installed or not. Audi then packaged each vehicle with a standard harness which is in all vehicles, a national harness which is country-specific, and accessory harnesses.

    I've seen various attempts at doing this or something like it but I've yet to see an automaker actually force their engineers to design a common electrical system across all or even most of their cars and platforms. Would be a HUGE benefit but it would take a lot of planning and firm orders from high up in the company. Most electrical system design in cars is shockingly ad-hoc in design. VW has been better than most at keeping stuff common across their products.

    Personally I think a better solution for a LOT of car wiring would be to go to a system something along the lines of a robust version of something similar to USB-C or Firewire or ethernet for data communications with some circuit boards embedded in components and between compartments. Think of it something like a standardized ethernet backbone for cars. It should be able to carry power too up to a reasonable amount similar to USB-C. Every component should be able to connect to it. High power stuff obviously could still use some dedicated conductors but signalling should all go through the common system which would be identical between vehicles. Taken to its logical conclusion you could in theory make most of the cables and connections in the car identical or nearly so which makes the physical bit of wiring very simple, easy to install, and easy to design/update/fix via software. They'd have to drive the logic boards into the components and make a LOT of them to get the costs to something reasonable. They've done some stuff like CANBUS which was an idea not taken nearly far enough. Right now basically every car has its wiring system designed more or less from scratch which is just bonkers.

    In my book it'd actually be better to put the PCM inside the vehicle (as Nissan does) but make the connections inside a box like Audi put everything into in my car, which would then only contain connectors, relays, and fuses. I like keeping the computer where it's safe and cozy.

    I could be fine with it either way. The problem isn't so much the location as it is the lack of standardization. There is SO little in the way of standardized components, standard design practices, etc in vehicle wiring that most people just don't really think about but the cost of it at the end of the day is enormous. It makes the engineering, installation, servicing, and testing far more difficult than it should be.

    1. Re:Standardization by drinkypoo · · Score: 1

      I could be fine with it either way. The problem isn't so much the location as it is the lack of standardization.

      They're both problems, just separate problems. The lack of standardization is a problem for everyone, it's true, but the underhood location causes problems for owners while burying it up under the dash causes problems for mechanics. However, it was easy enough to get to in my 240SX that this was not an issue, like it is in the T1N Sprinter. Getting the connector off that thing is a PITA in its location.

      Automakers don't give a shit about maintenance, why should they care about the plethora of connectors? Besides saving money, that is. :p

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  54. Markets do not solve every problem by sjbe · · Score: 1

    Collusion is illegal already so we don't need anything new here. Fraud is also illegal. If these companies colluded or engaged in fraud, the law enforcement part of government needs to engage and deal with it.

    Yes those things are illegal but it still requires an active and motivated regulator to enforce the laws and to define what is permitted in the inevitable corner cases and unexpected circumstances. Right now we CLEARLY do not have that.

    we don't want to do anything to disrupt the free market because the net result of government intervention isn't good for anybody.

    You seem rather dogmatic about the idea that government involvement is always bad. I disagree. Sometimes it is, sometimes it isn't. You can have too much or too little. The job of the government is to keep a free market doing its thing but then be ready to step in when it fails. Our health care system sucks because we have a government doing too little and not being involved enough. Our justice system puts too many people in jail because it the government is over involved. The idea that government intervention is always bad is just foolish ideology run amok.

    Auto repair shops are rife with fraudulent practices that are hard to prove, but this isn't universally true of all auto shops.

    That's not an excuse for sitting idly by and praying that the all powerful market will somehow fix the problems. We've been dealing with auto shops ripping people off for decades and the market clearly has not fixed the problem nor is there any plausible likelihood of that changing. The market has failed far too often to just sit around and hope it will be better next time.

    Just rest assured that fraudsters will eventually be dealt with in the marketplace.

    No. I'm not satisfied with such an approach. Waiting for the market to do its thing is why we had a massive housing crash in 2008. Markets do not always work and I think your faith in them is excessive.

    1. Re:Markets do not solve every problem by bobbied · · Score: 1

      The problem with healthcare IS government intervention and the removal of "free market" forces though the advent of insurance. We have too much government involvement in healthcare, not to little, too much insurance and not enough individual skin in the game so market pricing could work. You just don't realize this because the ideological changes that have caused us to accept government involvement in healthcare date back to WWII so you've never experienced how it should be. Healthcare's problems are driven by political forces which run counter to market forces, so there are issues BECAUSE of the governments meddling.

      The housing crash was also CAUSED by government intervention in the subprime mortgage market, creating a glut of worthless mortgage paper by forcing the industry to grant mortgages to people unable to pay for them. The issue was foreseen and warnings where ignored for political reasons and we all paid the price for not paying attention to those who where rightly saying that the rules where unsustainable. Had the lending rules not REQUIRED the issuance of this subprime paper, we wouldn't have had the crash when the market hiccup toppled the house of cards built on the sub-prime paper. It was totally the governments fault.

      I'm not totally happy with the free market, but as I've shown above, government involvement is NOT a good idea 99 times out of 100. Laws need to be enforced, to be sure, fraud and collusion rooted out and dealt with, but any further involvement by government is almost always going to have unintended consequences that break more things that needn't be broken than it fixes. Specifically price controls are NEVER a good long term idea and break the free market.

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  55. Accenture is scum by Anonymous Coward · · Score: 0

    Accenture scum, big surprise.