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| The focus needs to shift from giving outdated and | | | | If you don't see the shop's labor rate posted on the |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