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Study: Women May Pay More for Auto Repairs Sometimes

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Washington DC July 2, 2013; The AIADA newsletter reported that women are likely to pay more for auto repairs than men, but are also more likely to negotiate price concessions for the same repair work, according to a new study from Northwestern University’s Kellogg School of Management.

According to The Detroit News, the study found that auto repair shops will alter their initial price quotes if consumers—both male and female—appear to be well-informed, uninformed, or poorly informed about market prices for parts and repairs. This includes quoting higher prices for women if they appear to be uninformed.

Our findings suggest that auto shops may assume men know the market price for a given repair, so they automatically grant it,” said Meghan Busse, associate professor of management and strategy at the Kellogg School.

However, they may not expect women to be knowledgeable in this area, so the perception is they can charge them more.” The study used “mystery shoppers” who asked—using scripts—automobile repair shops for price quotes on a radiator replacement for a 2003 Toyota Camry. Those scripts either targeted the market price of $365; overestimated the market price, at $510; or said they had no idea of what it would cost.

Click here for more on a study showing women pay more for auto repairs.