California Bureau of Automotive Repair chief speaks on importance of complete teardowns
Improving communication with customers could go a long way to reducing friction, said Patrick Dorais, chief of the California Bureau of Automotive Repair (BAR), in his April 8 VeriFacts Guild 21 presentation. As part of the California Dept. of Consumer Affairs, BAR registers and regulates approximately 36,000 California automotive repair dealers, including about 5,000 auto body repair facilities. BAR also investigates and mediates consumer complaints for automotive repairs. On average, it investigates 1,000 complaints of auto body repair shops per year. And in about a third of those, consumers have alleged the shop staff either made false and misleading statements or they failed to obtain the customer’s authorization, Dorais said.
“Consumers are commonly reporting to us that they feel misled about the length of time for the repairs, and they have not any understanding of what was being done to their vehicles.”
Electronic communications can be one tool shops can use to lessen these misunderstandings, Dorais said. And as his office reminded shop staff looking for methods to assist with getting customer authorizations with touch-less drop-offs and pickups during the pandemic, electronic communications have been allowed since 2018, with California’s code of regulations 3353.1.
“They were adopted to give greater flexibility in the repair transaction for the auto repair facilities,” he said.
Dorais advised shop owners and managers to maintain all records for four years, and this includes any method to show the electronic communication, such as saving a screenshot of a text message. If BAR is asked to mediate a consumer complaint, he said, the investigator will ask for all documentation related to the transaction.
“We require by law that all those documents be preserved for three years. You’ll hear legal counsel and for the California Auto Body Association recommend four years, because I think the statute of limitations for civil actions is four years. So I’ll just say it’s probably a good idea to keep those records for up to four years.”
Guide illustrates itemized estimates, clear part descriptions
Throughout the presentation, Dorais referred to BAR’s “Write it Right,” a “guide intended to assist automotive repair dealers in complying with the Automotive Repair Act and related laws and regulations.”
As an example, BAR requires estimates to be itemized and list each new replacement crash part that will be used in the repair. Unless noted otherwise on the estimate, the default replacement part is OEM. For other parts, descriptors such as “opt-OEM” or “LKQ” are not recognized by the BAR, as the consumer is not likely to understand what those terms mean.
From the guide, Dorais shared an example estimate that illustrates how parts should be described, such as “front bumper cover (new non-OEM aftermarket part,” “hood assembly (OEM part),” and “front right fender (OEM part),” and “right headlamp assembly (used part).” Additionally, for the fender, there is an asterisk that denotes it is “purchased and warranted through a third-party vendor and does not carry the vehicle manufacturer warranty.”
“We just gave these examples to show how important it is to have this transparent communication and dialogue with your customers to get us out of your shops. You’re not going to get consumer complaints when you have this kind of transaction.”
Increased vehicle technology and shop standards may increase customer distrust
In nearly 50 percent of complaints, consumers allege the facility was negligent in the repair process or caused damage to their vehicle. Whether this is only perception or reality, “technology in the vehicle structure and safety systems are only going to get more complicated,” Dorais said. “The use of high-strength steels and the aluminum Ford F-150 are a perfect example of that. It’s going to be more challenging for us as a regulatory agency.”
Dorais predicted ADAS would increasingly generate more complaints to BAR.
“I think that’s just going to lend itself to consumers thinking, ‘It didn’t ever cost me this much to repair a vehicle in the past,’” he said. “And it’s just because of a lack of understanding or knowledge with respect to how much is going to be involved in repairing a vehicle.”
BAR is seeking to retool the equipment and trade standards applied to auto body repair shops, Dorais said. Rules for required equipment, which date back to 1997, would first be updated, followed by trade standards.
BAR recommends teardowns to keep customers informed
BAR defines teardowns as “the act of disassembling a vehicle or vehicle component for the purpose of preparing an estimate.” Dorais said they “can help to avoid the scenario, where after performing thousands of dollars in collision repairs to a vehicle, a supplemental estimate revision is submitted, causing the vehicle to become a total loss.”
For such teardowns, BAR requires an itemized estimate for the parts and labor necessary for the specific job. The customer’s authorization for either repair or reassembly must be obtained before any further repairs are performed or any additional charges accrue.
“It provides a more realistic time frame for the repair of the vehicle,” Dorais said. “I think that’s really key to keeping the consumer informed.”
How BAR views three-party transactions
BAR recognizes that the nature of a three-party transaction can give rise to more conflicts, but it also recognizes the customer in the transaction is the vehicle owner.
“The party paying the repair bill is often not the customer,” Dorais said. “We all know that given the competing priorities of those involved in the three-party transaction, problems do occur, and that’s why we get dragged into it. Sometimes consumers want more than they are entitled to. That happens a lot. And repair shops often focus their attention on the insurance company, because they’re the ones paying the bill and insurance companies want to keep costs down.”
That often leads to conflict about the repair process, Dorais said, and it’s a “dynamic that often results in the consumer being excluded from the repair of their own vehicles,” which leads to consumer complaints.
“It’s BAR’s belief that auto body repair facilities and insurance companies should always work to develop a productive relationship that’s based on mutual respect, professionalism, and trust,” Dorais said. “And that’s in order to better help their common customer, which is the consumer or the customer or the vehicle motorist. That’s important to us, and it will save us from being involved in these transactions.”