Why is a Mazda dealer charging me so much?

QUESTION

Hi John,

Just watched your video on the Mitsubishi 10 year warranty-with-a-catch and thought I'd share a recent dealer service experience I had with Mazda here in the Sunshine State.

I have a 2012 Mazda CX-9 which has 106k on the clock and has developed a small transmission kickdown issue from 5th to 4th. Nothing seemed significant but doctor Google revealed some others who had the same problem and blogged their dealings about getting it fixed.

So, I took it to the local Mazda dealer expecting them to diagnose and recommend options keeping in mind that the average consumer (me) would be thinking that any dealer service would be premium and as-expert-as-it-gets.

The car was also due for a service but that was a secondary issue I made clear to them at the time. I turned up at the dealer at 5pm closing time to pick up the car and was told by the service staff that the transmission was completely shot and the car needed a new one at a cost of $18k. They recommended not to drive it but if I chose to I would have to sign a waiver. I left it there.

They referred the matter to their locked down Melbourne head office who basically told them and me that there was no evidence of mechanical failure. So I had the dealer technician expert telling me the transmission was dead -versus a telephone and keyboard warrior customer service "expert" telling me there was no issue. What the…?

After some slightly heated discussions they took the car to an independent local transmission guy who changed the oil, reconfigured the TCU and said she was good to go. What the…?

Lessons learned for me in line with your advice:

1. Dealer technicians are not experts;

2. Dealers are only interested in cash cow services where they do nothing and charge the world and their business model appears to be that slight mechanical problem needs to be ripped out and completely replaced rather than repaired/serviced;

3. I learned from a reliable transmission guy that Mazda does not service auto transmissions as part of routine servicing because it adds costs that consumers whinge about and they deem transmission oils as lifetime items but that a lifetime to a dealer is the warranty period.

   IF YOU OWN A MAZDA GET YOUR AUTO TRANSMISSION SERVICED REGULARLY BY AN INDEPENDENT SPECALIST ESPECIALLY IF YOU HAVE TOWED ANYTHING.

4. Know your consumer rights and be prepared to tell the dealer that;

5. I will never buy another Mazda because the aftersales service is rubbish.

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ANSWER

Hello Jay,

I would be extremely twitchy any time a dealer said to me ‘those repairs are going to cost you [insert big number here]’.

In fact, dealerships are, as you say, often interested only in basic servicing items, and major problems are too hard for them. Major repairs, especially out of warranty, are often far more cost-effectively completed by independent servicing experts.

Transmissions are a classic, as are engines. (It’s very rare for a dealer to rebuild an engine or transmission. Their approach is simply to exchange the parts: new engine, new transmission, whatever.) They’re also crap at diagnosis, typically, because it’s just not their main game.

The difference in position between the dealer and Mazda is also easy to explain. Dealers are independent businesses. They’re in it for themselves. Mazda doesn’t control them. They often have completely different commercial objectives.

CONSUMER LAW, WARRANTY & SERVICING RESOURCES FOR YOU:

• ACCC: Consumer & competition regulator’s complaint letter tool >>

• The truth about long servicing intervals >>

• Sealed for life transmissions: an epic fail coming your way >>

• Australian Consumer Law: Know Your Consumer Guarantees (ACCC) >>

• Consumer Law protection after warranty: knowledge is power>>

• Should you buy a Mazda in 2020?

• How to fight the service department (and win) >>

• Why does the dealer service department treat me like shit? >>

Imagine being a dealer with 25% reduction in sales, and major fixed operating costs. You come along, essentially offering them an $18k lifeline - if they can bullshit you across the line on it. They’d probably refurbish your transmission (by sending it to the dude you used to refurb yours) and sell it for $8-10k to the next dude who came in with a problem like yours.

The problem with this being, as you so adroitly put it, “I will never buy another Mazda”. Relationships are often incinerated in the service department. I see this as a real pity because I actually like Mazda products. Where they fall down in comparison to Hyundai, Kia, Subaru, Lexus and Toyota, for example, is in this area.

I’ll let them know at a senior level, that this is a relationship deal breaker for you, because they need to learn to change their tune, as well as get their cowboy dealers in line.

Sincerely,

John Cadogan

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