Approved Auto Repair Background & Overview

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1 Approved Auto Repair Background & Overview The Approved Auto Repair (AAR) program was created to address one of the most frequent consumer complaints in America unsatisfactory automobile repairs. The AAR program does this by directing members and other consumers to AAA-approved repair facilities that meet and maintain high professional standards. Since the AAR program began in 1975, more than 7,700 automotive repair facilities have been approved in the United States and Canada. Initially, the AAR program certified only general mechanical repair businesses. More recently, however, AAA clubs have been given the option to also approve collision repair centers (Approved Auto Body) and specialty auto repair (Service) facilities. Individual AAA clubs administer the AAR program with support from the National Office. There are over 200 service specialists in the various AAR programs, each with Automotive Service Excellence (ASE) certification and an extensive background in automotive service. A stringent set of program standards guides the clubs, and each AAR program is regularly accredited by the National Office. The AAR approval process is tough. When a shop applies, a service specialist inspects the facility for cleanliness, proper tools, adequate technical training, and appropriate technician certifications. A survey is then performed with a significant number of facility customers to obtain their opinions on how well the business meets their automotive service needs. Every question on the survey must receive at least 90% positive responses before the facility will be considered for approval. AAA also checks the facility s reputation with government and consumer agencies, and runs an insurance and financial background check. A committee of AAA club officials makes the final decision on whether a facility receives approval. AAR facilities sign a contract in which they agree to provide customers with: a written estimate not to be exceeded by more than 10% without prior approval, a 12-month/12,000 mile parts and labor warranty, the return of old parts if desired, and the right to have AAA arbitrate any dispute between an AAA member and the facility. AAR full-service mechanical repair facilities also agree to provide AAA members with a free maintenance inspection on request in conjunction with other paid repairs. Although the AAR program standards do not require discounts, many AAR shops offer special savings to members by voluntarily participating in the AAA Show Your Card & Save program. While non-members do not necessarily receive the same benefits that AAA members are entitled to, the general motoring public does profit from the knowledge that a repair shop displaying the AAR sign has met AAA s tough standards and can be counted on to do a good job. Non-member repair complaints are typically recorded by AAA clubs, and the facility is made aware there is a problem, but the arbitration benefit of the AAR contract does not apply in these situations. To ensure an ongoing customer satisfaction index (CSI) of 90% or better, every AAR facility is required to participate in an independent and ongoing program of monitoring their customers satisfaction. This can be done by distributing AAA-approved service evaluation cards to customers, or by performing an annual re-survey of repair customers. AAA will also consider other independent CSI monitoring programs on a case-by-case basis. Regardless of the CSI program used, the approved facility must regularly report the results to the Club. Over the years, AAR facilities have Version 1.2 April 2004

2 surveyed tens of millions of service customers and maintained overall customer satisfaction levels that average higher than 95 percent! Version 1.2 April 2004

3 AAR Program Standards The following information is a direct excerpt from the current AAR Program Standards. These sections define the requirements and obligations applicable to shops that wish to participate. FACILITY RESPONSIBILITIES: A. SCOPE OF SERVICE Approved facilities must provide service in items Engine performance 2. Minor engine repair 3. Brakes 4. Electrical systems In addition, a facility may also provide the following services: 5. Tires, steering, suspension 6. Heating, air conditioning 7. Major engine repairs (Gasoline and/or Diesel) 8. Automatic Transmission 9. Manual transmission, rear axle 10. Engine Performance / Diesel B. SUBLETTING OF REPAIRS is permitted for the following: 1. Engine rebuilding/remanufacturing 2. Transmission rebuilding/remanufacturing 3. Radiator repairs 4. General machine shop operations 5. Tire repairs 6. Alignment 7. Heating & Air Conditioning

4 C. DIAGNOSIS - Must offer, by appointment, separate diagnosis in areas where repairs are offered, when so requested by a customer. D. MAINTENANCE INSPECTION - On request, the approved facility must perform an AAR maintenance inspection at no additional charge when servicing AAA members vehicles on a pay ticket, using a form specifically designed for this purpose by AAA. Members must produce a valid AAA membership card as proof of membership. E. ARBITRATION - Must accept the final decision of the AAA club in resolving complaints concerning service to AAA members vehicles. F. WARRANTY - Must guarantee the effectiveness of repairs, parts, labor, or components for a minimum of 12 months or 12,000 miles under normal operating conditions. If due to the age or condition of the vehicle, there is risk that the repair may not be wholly satisfactory, the member must be advised as soon as this is determined by the approved Facility. This must be documented in writing. 1. A facility subletting any portion of a vehicle, (i.e. - front end alignment, heating/air conditioning, etc.) shall still be held totally responsible for the repair of that vehicle. G. CUSTOMER SERVICE 1. All service staff must be qualified and courteous 2. Visible identification must be worn by all reception staff. 3. If customer facilities are present, they must be clean, safe, and comfortable. H. FACILITY APPEARANCE - The facility must reflect an image that is complementary to AAA and meets reasonable member expectations for cleanliness, convenience and professionalism. 1. Signage stating the following must be visible: a. Warranty/Guarantee b. Labor rate c. Member benefits poster I. STAFF QUALIFICATIONS AND TRAINING 1. Repair facilities applying for AAR Approval must have ASE technician certification for all categories for which they apply before the approval process can begin. ASE certification must be in place for the technician or supervisor personnel actually performing vehicle repairs. ASE certificates of personnel not directly involved in the repair of automobiles will not be credited. (OEM training/certifications can take the place of ASE certifications. OEM training/certifications are acceptable if training/certification occurred within the past five years.) a. If an AAR facility loses ASE certification for one or more approval categories, the facility must:

5 1) Notify AAA in writing within 10 days of the certification deficiency. 2) Obtain ASE or equivalent certification for the deficient categories within 6 months, or the next available test date, whichever comes latest. 2. AAR facilities also must comply with all State and Federal certification requirements which may apply to AAR categories. 3. A garage supervisor must be available during all hours of service operation for member contact and quality control purposes. 4. Employees must attend training programs and keep up-to-date on new automotive systems. 5. The facility must have service reception personnel who are trained to advise customers regarding repairs and service. J. COMMUNITY REPUTATION - The facility must have an acceptable community reputation as determined by a review and analysis of: 1. A financial report by a bank or other independent organization. 2. Local or state consumer protection agency report. 3. Inquiries of past customers randomly selected by AAA. K. AGREEMENT - The repair facility must agree to accept all contract provisions. L. EQUIPMENT REQUIREMENTS - Each facility must be able to demonstrate its capabilities of diagnosis and repair for each service in which they are approved to perform repairs in.

6 Approved Auto Repair Benefits Participation in the AAR program provides a variety of benefits. Some, such as AAA affiliation, enhance a repair facility s standing in the eyes of consumers. Other benefits, such as repair referrals, can help increase a shop s business. In addition, AAA has leveraged the buying power of over 7,700 approved repair facilities to negotiate special savings on many business needs and services. These AAA-unique offers take dollars out of a shop s operating expenses and move them directly to the bottom line. The range of AAR benefits is being constantly upgraded, and the following is only a partial list. AAA AFFILIATION Affiliation with the nation s largest and most recognized provider of high-quality automotive and travel related services. AAR shops receive extensive identification materials, and a limited license to use the AAA emblem in their advertising. REFERRAL BUSINESS AAA Referrals AAA Call Centers and Emergency Road Service personnel refer members and the public to Approved Auto Repair facilities. FACILITY AND PROGRAM PROMOTION AAR program advertising and facility listings in club publications. AAR program promotion in member e-zines. AAA Car Care Month (October) promotions that include AAR facilities. AAA National Office AAR program promotion via public service channels. INTERNET INITIATIVES AAR facilities, both local and nationwide, are listed on aaa.com and can be easily accessed through a powerful search engine. Dedicated AAR facility web pages provide complete shop information and offer members the opportunity to request an appointment online AAA AutoManager, and other online automotive content, encourages members to properly maintain their vehicles and seek out the professional services of AAR facilities. A dedicated aaabiz.com web site offers a wide variety of information to service providers. VEHICLE REPAIR PART DISCOUNTS AND REBATES AAA/NAPA Quality Parts Program lowest National Account pricing for AAA service providers. Also 2% to 5% rebates on qualifying parts purchases when minimum purchase volumes are met. TOOL AND EQUIPMENT DISCOUNTS NAPA Tool & Equipment Program lowest National Account pricing for AAA service providers. AW Direct 5% to 12% off published catalog price on most items, plus AAA special items at even greater savings.

7 UNIFORMS RENTALS AND SALES DISCOUNTS Cintas special pricing for AAA Service providers on uniform rentals. Unique AAA program benefits. AAA-branded carpet mats. Plus, a 15% discount on Cintas uniform catalog purchases. REPAIR INFORMATION AND SHOP MANAGEMENT SYSTEM DISCOUNTS Mitchell1 products special pricing for AAA Service providers on repair information and shop management software. FINANCIAL SERVICES Sovereign Bank equipment and facility financing at competitive rates for AAA service providers. Sovereign Bank credit/debit card acceptance program with extremely low transaction charges. LUBRICANT, ANTIFREEZE, AND CAR CARE PRODUCT DISCOUNTS Valvoline special AAA pricing on lubricants, coolants, and car care products. TELECOMMUNICATIONS DISCOUNTS Nextel savings on Nextel wireless communication, including Direct Connect cellular phones. FLEET VEHICLE DISCOUNTS Ford Motor Company and affiliates vehicles available with special pricing and rebates for AAA service providers (vehicles must be for business use). SHOW YOUR CARD & SAVE AAA Show Your Card & Save program differentiate your business from those of your competitors and generate additional member business. LEGISLATIVE ACTION AAA National lobbying on your behalf in support of the Motor Vehicle Owner s Right to Repair Act and other repair related initiatives. BRANDED PROMOTIONAL MERCHANDISE DISCOUNTS Consolidated General Corporation Promote your AAA affiliation with branded and personalized merchandise from COMPLAINT HANDLING AND ARBITRATION Customer complaints are communicated to AAR facilities for prompt resolution. AAA automotive experts can assist AAR facilities in resolving disputes with difficult-to-please customers.

8 AAR Facility Responsibilities Once a repair shop has been accepted by AAA as an Approved Auto Repair (AAR) facility, there are certain responsibilities the facility must accept as a participant in the program. Listed below are the most important elements. For a complete list of requirements, see the AAR Program Standards. Customer Satisfaction Tracking AAA maintains very high customer service standards, and expects businesses that affiliate with the association to provide similar levels of service. To ensure this takes place, every AAR facility agrees to participate in an independent and ongoing program of measuring their customers satisfaction. General Customer Responsibilities The AAR program is a AAA member benefit, but it is also a way for the association to help to improve the auto repair experience for all motorists that use AAA-approved shops. Toward this end, AAR facilities agree to provide every service customer with these benefits: Written Estimate Every customer will be given a written estimate of the cost of work to be performed on their vehicle (excluding sales tax). The final cost of the work may not exceed the estimate by more than 10 percent unless authorized by the customer in advance. 12/12 Warranty Unless otherwise specified in writing prior to the start of work, all repairs must be guaranteed (both parts and labor) for a minimum of 12 months or 12,000 miles. Return Of Parts On request, replaced parts will be returned to the customer. Parts that must be returned to the manufacturer under a warranty or exchange program are excluded from this requirement, but must be available for inspection when the customer picks up their vehicle. AAA Member Responsibilities In addition to the items listed above, AAR shops agree to provide AAA members with two additional and exclusive benefits: Free Maintenance Inspection On request, in conjunction with other paid repairs, AAR facilities (full service mechanical repair shops only) will inspect a member s vehicle at no charge for items that most frequently contribute to roadside breakdowns. At the time of vehicle pickup, the member will receive a written recommendation of any needed maintenance or repairs. Dispute Resolution AAR facilities agree to let AAA investigate any dispute between an AAA member and an AAR facility that cannot be satisfactorily resolved by the two parties. AAA s resolution decision is binding on the facility, but not on the AAA member who may seek recourse through other avenues. While non-members are not eligible for the dispute resolution process, AAA clubs typically record nonmember complaints and inform the repair facility that there is a problem. The handling of the dispute from that point forward is at the discretion of the repair facility.

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