Understanding Labor Charges
Auto repair can be a complicated thing to understand. Most people only know they have to put gas in the car and change the oil on a regular basis. So, when the family cruiser starts to spit and sputter, the average person only knows to turn their keys over to the local auto repair experts to have it fixed. Here’s
where you wish you knew a little bit more about what it’s going to take to fix your own car. Estimates for repair can range anywhere from $50 to several thousand dollars depending on what has to be replaced. People ask me all the time how the price of an auto repair is determined, usually phrased something like, "Why does it cost so much to fix my car?"
Essentially, the answer to the question lies in the quality of workmanship you receive. All reputable shops use an industry standardized “labor rate” to determine the labor involved in performing a specific job. Shop labor rates vary with the geographic area of the country and are competitive within a particular area. Labor rates typically run $80-$150 per hour nationwide.
A shop that specializes in a particular area usually charges higher labor rates for their service than a general service shop. While a specialist may charge more, this type of shop can often wind up being cheaper in the long run. A specialist is more likely to diagnose and repair a problem in laser-like fashion, fixing the vehicle in less time and using fewer new parts. Shops unfamiliar with a type of problem can end up muddling around, wasting the customer's money on unnecessary parts and long hours of labor just trying to find a solution.
Buyer Beware. There are shops that use bait-and-switch tactics to get you to bring your car to their shop. Usually, they advertise exceptionally low prices to entice you into thinking you’re getting a really good deal. The cheap advertised prices are usually off-set by exceptionally high labor rates for other services. They hit you with an outrageously high estimate once your car is in the shop and unable to move. When you decline the work, the shop charges you an unreasonably high “diagnostic charge.” These shops give the industry a bad name and should be avoided by the public. My best advice is to check your local shops labor rates. Choose a shop that best fits your needs and is in the middle of the labor rate spectrum.