| Worrying whether or not you were overcharged | | | | are all over the place, so pick the price in |
| for your car repair is an awful feeling. | | | | the middle. |
| There's tons of advice on how to avoid | | | | |
| getting ripped-off, but few discuss the | | | | Auto Repair Labor |
| actual car repair prices. We really need to | | | | |
| look at the charges on a car repair estimate | | | | Labor is billed in tenths. So 1.0 equals 1 |
| or auto repair invoice to determine if we're | | | | hour. 1.5 equals an hour and a half. |
| paying too much. | | | | |
| | | | Labor rates range from $60 to $100 per hour |
| The focus needs to shift from giving outdated | | | | at local repair shops and $80 to $140 per |
| and ineffective advice to addressing the | | | | hour at the dealer level. Labor times are |
| "actual" and "specific" charges. Are they | | | | based off established industry guidelines, |
| legitimate charges? Can they be justified by | | | | which are frequently abused. |
| industry guidelines? | | | | |
| | | | If you don't see the shop's labor rate posted |
| Now car repair estimates can be confusing. So | | | | on the car repair invoice, ask your service |
| let's break it down to get a better idea if | | | | center for the rate. Repair shops can |
| your auto repair shop is billing you | | | | manipulate the labor rate (among other |
| appropriately. | | | | things) with a labor matrix. Matrix pricing |
| | | | is a complicated and ethically questionable |
| First, a glossary of terms is in order, as | | | | practice discussed at length in RepairTrust |
| the auto industry has a language of its | | | | literature. What you need to know is that you |
| own... | | | | can pay as high as $150 per hour rather than |
| | | | the posted labor rate of $105 per hour. |
| Aftermarket Parts: parts not made by the | | | | |
| manufacturer. | | | | To ensure that you're being charged properly, |
| | | | you'll want to multiply the number of hours |
| MSRP: Manufacturer's Suggested Retail Price | | | | billed (which is also often not posted) by |
| | | | the shop's labor rate. |
| OEM: Original Equipment Manufacturer. | | | | |
| Manufacturer approved parts designed | | | | Most labor descriptions are poorly written |
| specifically for your vehicle. | | | | and difficult to understand. So ask |
| | | | questions. |
| TSBs: Technical Service Bulletins. Notes and | | | | |
| instructions provided by the manufacturer for | | | | Here's a "clear" labor description for a |
| known and specific concerns(they are not | | | | 30,000 mile service on a Toyota Camry. |
| recalls). | | | | |
| | | | Performed 30,000 mile service per customer |
| Flat Fees: services such as alignments that | | | | request, and in accordance with manufacturer |
| don't get broken down into parts, tax, labor | | | | guidelines. Changed oil and filter, installed |
| | | | new air filter, cabin filter and performed |
| Miscellaneous Charges: these can include, but | | | | all necessary tests, checks, and procedures, |
| are not limited to shop supplies - rags, | | | | including road test (miles 30,123 - 30,125). |
| chemicals, hazardous waste disposal fees, | | | | Performed lubrication services and confirmed |
| waste oil ...etc. | | | | proper vehicle operation. Set tire pressures, |
| | | | and checked fluids, belts and hoses. Note: |
| Labor Rate: a repair center's hourly charge | | | | vehicle is pulling slightly left. Needs |
| to service your vehicle | | | | alignment |
| | | | |
| Labor Time: the amount of time or hours | | | | Miscellaneous Charges |
| determined that it will take to fix your | | | | |
| vehicle | | | | The bulk of your car repair invoice will be |
| | | | parts and labor, but we can't forget about |
| Labor Description: the step-by-step written | | | | Miscellaneous Charges. These charges can |
| details of repairs and/or services | | | | include, but are not limited to, shop |
| | | | supplies - rags, chemicals, hazardous waste, |
| Ok, let's look at the Anatomy of an Auto | | | | disposal fees, waste oil ...etc. The latter |
| Repair Estimate: | | | | of these may be billed out separately in a |
| | | | summary at the bottom of your repair invoice. |
| There are six basic components to a car | | | | |
| repair estimate | | | | Very few of these "extras" are actually used |
| | | | during regular repairs. Miscellaneous charges |
| 1) Customer/Vehicle Information | | | | are calculated off the amount of labor hours |
| | | | billed, not the amount of miscellaneous items |
| 2) Parts | | | | used. |
| | | | |
| 3) Labor | | | | Flat Fees |
| | | | |
| 4) Miscellaneous Charges | | | | Flat fees can be another very tricky area. |
| | | | Flat fees are services, such as an alignment, |
| 5) Flat Fees | | | | which don't get broken down into parts, tax |
| | | | and labor. This makes it difficult to |
| 6) Summary of Charges | | | | determine the real and fair price. On the |
| | | | plus side, most flat fees are competitively |
| Customer and Vehicle Information | | | | priced. |
| | | | |
| Using a generic "top down" style estimate, | | | | Be warned however, another term for Flat Fee |
| the top portion simply contains your personal | | | | is called Menu Selling. In other words, you |
| information and your vehicle's specifics: | | | | might see Tune Up: $99.99 or Transmission |
| year, make, model, mileage...etc, as well as | | | | Flush: $89.99. Follow your manufacturer's |
| your request or concern. | | | | recommendations only, not a dealer's or |
| | | | repair shop's menu. |
| We also want find the shop's labor rate. The | | | | |
| labor rate is critical in determining if you | | | | Summary of Charges |
| paid too much. Most repair centers don't list | | | | |
| the labor rate. We'll discuss why shortly. | | | | The last part of an auto repair estimate is |
| | | | the summary of charges. It's usually found in |
| Auto Parts | | | | the bottom right hand corner of the invoice. |
| | | | Check it against the charges above to ensure |
| Parts are listed usually with a brief | | | | that it all adds up mathematically, as well |
| description, as well as the quantity, and the | | | | as logically. |
| price. There are three types of parts: OEM | | | | |
| (parts made by or for a manufacturer). These | | | | This basic estimate outline may differ from |
| are the parts installed by a dealer, although | | | | your particular invoice, which may have other |
| many local shops use OEM parts too. | | | | categories such as "Sublet" or "HazMat." |
| | | | |
| Aftermarket parts are non OEM parts, and | | | | A sublet charge is added when your auto |
| there are various degrees of quality, | | | | repair shop uses another vender to fix or |
| depending on the brand and where they're made | | | | repair your car, such as a glass company that |
| - China versus USA, for example. | | | | replaces your windshield. |
| | | | |
| Then there are Used parts purchased from a | | | | A HazMat charge may include waste oil or |
| salvage yard. | | | | other disposal fees. Just make sure that the |
| | | | charges are warranted, as again, they too are |
| To determine if you paid too much for parts, | | | | often calculated off the labor time rather |
| first find out what type of parts are being | | | | than actual need. |
| used. With OEM parts, you don't want to pay | | | | |
| more than MSRP, although most people do | | | | In sum, understanding the "actual" charges, |
| without realizing it. Premium aftermarket | | | | asking the right questions, and breaking down |
| parts are similarly priced across brands, | | | | your auto repair costs is the best way to |
| although beware not to pay more than MSRP, | | | | avoid paying excessive car repair prices. |
| which again, many folks do. Used part prices | | | | |