Car repair cheats cost drivers £4bn

Britain's car owners are being ripped off to the tune of up to £4 billion a year by garages who overcharge for repairs or carry out substandard work, an official investigation has found.

Four in 10 garages visited by undercover investigators from the Department of Trade and Industry provided unacceptable servicing and repair work.

The undercover team, who visited both backstreet oneman operations and franchised service centres, found examples of mechanics billing for work which had not been carried out, charging for parts that had not been fitted and overcharging on labour costs.

Wiper blades were replaced unnecessarily and huge bills submitted for engine repairs.

A DTI insider said: "One estimate put the cost to the consumer at £170 million, although a random survey of garages suggested a far higher figure - up to £4 billion a year."

Consumer Minister Melanie Johnson will tomorrow unveil plans to tackle the cowboys. The Good Garage scheme, a Government-backed voluntary code, aims to set out minimum standards. It will be backed by regular undercover checks to ensure garages meet the standards.

Miss Johnson said: "Car repairs need to be brought up to scratch. The buck stops with the motor trade. We spend £9 billion a year on servicing and repairing cars. At the moment customers do not have confidence in the industry."

Britain has about 31,000 car servicing and repair businesses, of which three-quarters employ fewer than five staff. Ministers are understood to be prepared to bring in mandatory licensing legislationif the Good Garage scheme fails.

But motor retailers, who will meet the Government tomorrow, fear a crackdown will add red tape and increase costs, which will have to be passed on.

Matthew Carrington, chief executive of the Retail Motor Industry Federation, said his association already had measures in place to regulate its 9,000 members. "We do not need an immensely expensive and bureaucratic self-regulating system. If the Government increases the costs to the industry, it will have to be passed on to the consumer," he said.