Carmakers are starting to be anticompetitive

Dear Tom and Ray: I don't know if you've ever commented on the "proprietary software" being installed by automakers these days. I'm presently shopping for a newer, used Volvo, and I fell in love with the S80. However, when I bounced this off my trusted independent Volvo mechanic, he told me he cannot work on these models because they are filled with proprietary software designed to drive owners to Volvo dealerships for service and repairs. He says even the dealers have to transmit data back to the East Coast headquarters to get answers. Are other carmakers doing this now? Doesn't this run contrary to the great democracy in which we live today? Margaret

Ray: Yes, it does seem a bit contrary to the American Way, doesn't it, Margaret? But I think the people are starting to rise up. In fact, I saw a protest sign outside a garage the other day that read "No Tire Rotation Without Representation!"

Tom: This is an unfortunate trend, Margaret. A number of higher-end, mostly European manufacturers are using technology that requires proprietary tools to diagnose.

Ray: That doesn't mean they won't give the tools to Sven, the local independent Volvo mechanic. But it means Sven would have to lay out eight to 10 grand for the special computer and software to work on S80s. And he'd have to pay for upgrades every year.

Tom: It's unlikely that most independent mechanics, who usually work on a variety of cars, are going to spend that kind of money so they can work on the half-dozen S80s that come in during the year.

Ray: So, the reality is that this DOES create more business for dealerships, and, over time, serves to drive independents out of business. That means less competition for your service dollars, which means fewer choices and higher prices for your repairs.

Tom: In fact, we did a study a couple of years ago and found that, on average, dealerships charge about 15 percent more for repairs than independent shops charge. And that's WITH competition from the independents. Without it, who knows?

Ray: We think this is anticompetitive. But it's apparently not illegal. So, the only way you can protest, Margaret, is to buy something else. If you want some specific suggestions, I know that Lexus and Infiniti are two high-end cars that don't keep their diagnostics proprietary -- at least, not yet. We work on both of those makes with our existing tools without any problem.

Tom: But it's best -- as you did -- to ask your own mechanic if he'll work on a specific used car before you buy it. It's better than finding out after you buy it that your choices for repair and service are severely limited.