RE: £152.75 per hour!
RE: £152.75 per hour!
Thursday 17th June 2004

£152.75 per hour!

New study shows variance in labour charges


Motorists are being charged as much as £152.75 an hour for labour to get their cars repaired, according to data released by independent automotive warranty specialist, Warranty Direct.

Analysis of twenty-seven manufacturers highlights the dramatic variation across the country with the headline £152.75 an hour being charged by a BMW franchised dealer in Central London. This figure compares to a combined franchised and independent garage average of £56.72 for the whole country.

The Thames Valley belt of Buckinghamshire, Oxfordshire, Wiltshire and Gloucestershire is the most expensive region in the UK with an average hourly charge of £68.61. Scotland is the cheapest, nearly sixty percent less, with an average of just £43.12.

Lexus, Mercedes-Benz, Jaguar, Porsche and Audi dealers provided the five most expensive rates recorded by Warranty Direct. At the other end, Mazda delivered an average of £44 an hour, yet the dearest franchised dealer noted would set you back double that figure. Similarly, a Ford may cost £50 on average but a London franchised dealer will charge £106.

Maximum and Average Hourly Labour Rates By Region

Region

Highest Franchised Dealer Labour Rate Recorded

Average Labour Rate Recorded

(Franchised & Independent)

Thames Valley

£117.31

£68.61

North London

£115.62

£65.36

Anglia

£102.67

£64.87

South London

£152.75

£62.97

North West

£108.63

£60.71

Northern Ireland

£81.66

£58.67

South Coast

£119.85

£55.21

Midlands

£111.63

£54.45

North East

£101.50

£53.24

Wales

£96.31

£51.60

South West

£101.52

£50.35

Yorkshire

£98.70

£48.12

Scotland

£70.50

£43.12

After pressure from the OFT, manufacturers have recently lifted servicing restrictions allowing owners to freely choose where they have their new car serviced.

"Unfortunately, manufacturers don’t have any control over dealer labour rates, hence the sometimes truly extortionate charges some motorists are having to stomach," explained Duncan McClure Fisher of Warranty Direct. "Everyone appreciates that the cost of living differs across the country but surely not to this level?"

Compared to the previous twelve months, Warranty Direct has registered a three-fold increase in the number of franchised dealers charging over £100 an hour.

"The obvious advice is to shop around, and as manufacturers have effectively given them a stamp of approval, don’t ignore established or specialist independent garages. The service is just as professional and competent but you don’t always have to pay the price," added McClure Fisher.

The data is based on claims handled by Warranty Direct since June 2003 and its annual survey of franchised dealer rates from across the UK.

Maximum and Average Hourly Labour Rates By Manufacturer

(order based on Ave Labour Rate - low to high)

(order based on Ave Labour Rate - low to high)

Manufacturer

Highest Franchised Dealer Labour Rate Recorded

Average Labour Rate Recorded

(Franchised & Independent)

MAZDA

£88

£44

NISSAN

£73

£46

SEAT

£82

£46

FIAT

£80

£46

MG ROVER

£82

£46

SKODA

£80

£47

CITROEN

£76

£48

PEUGEOT

£88

£49

HONDA

£76

£50

GM DAEWOO

£85

£50

RENAULT

£94

£50

FORD

£106

£50

TOYOTA

£82

£51

VAUXHALL

£88

£51

MITSUBISHI

£82

£53

LANDROVER

£112

£55

VOLKSWAGEN

£100

£58

SAAB

£104

£61

VOLVO

£100

£61

ALFA ROMEO

£88

£62

CHRYSLER JEEP

£103

£63

BMW

£153

£68

AUDI

£129

£72

PORSCHE

£112

£73

JAGUAR

£116

£75

MERCEDES

£123

£77

LEXUS

£112

£78

Author
Discussion

John Reay

Original Poster:

867 posts

261 months

Thursday 17th June 2004
quotequote all
And people complain at what Lawyers charge !!

Hurrah for independants.

John

RichardD

3,608 posts

267 months

Thursday 17th June 2004
quotequote all
BMW - top of the pile!

IPAddis

2,494 posts

306 months

Thursday 17th June 2004
quotequote all
What percentage of this gets passed on to the mechanic doing the work? I'd be surprised if it was double digits!

Rip off!

Bodo

12,452 posts

288 months

Thursday 17th June 2004
quotequote all
IPAddis said:
What percentage of this gets passed on to the mechanic doing the work? I'd be surprised if it was double digits!

Rip off!
4.3% for a senior probably.

I *so* need to live in London

thirsty

726 posts

286 months

Thursday 17th June 2004
quotequote all
I took my Chim 450 to an independant. They were as good or better, and a lot cheaper. Rule of thumb... Dealer for Warranty, an independant garage for everything else.

I have done that for 20 years, and haven't regretted it yet.

tuscanboy

181 posts

306 months

Thursday 17th June 2004
quotequote all
I was amazed when an the Audi dealer in Wimbledon quoted £95 + VAT per hour. I chose to use them in order to get the official stamp, but the extra work required I had done elsewhere.

Thes rates are quite frankley astonishing, but short of boycotting these dealers, there seems to be little that can be done. I'm sure that the increase is due to the fall in margin and value on new and used car sales, but we've had that the IT sector for the last 10 years, but we haven't been able to simple double our labour rates. Having recently experience the latest garage rates, I reckon I should up our engineer rates as one would think if Mr M.D is prepared to spend £150 an hour having his oil changed he shouldn't quibble at a similar rate for a highly paid senior network engineer to keep his business running - If only!!!!

RichardD

3,608 posts

267 months

Friday 18th June 2004
quotequote all
tuscanboy said:
...Having recently experience the latest garage rates, I reckon I should up our engineer rates as one would think if Mr M.D is prepared to spend £150 an hour having his oil changed he shouldn't quibble at a similar rate for a highly paid senior network engineer to keep his business running - If only!!!!


Odd isn't it, that something seemingly critical, like wiping the oil filter in a BavarianMotorWagon justifies this sort of big money (how long would it take to train someone from scratch?), where as something soooo complicated it is a miracle they even work (computers) don't?

Must be since computers are magic. An Apple Mac for example can be used to plant a virus on an alien mothership and save the earth - did you know!! ahem

I'll stay content in taking my cheapo French car to a suitably cheap independant French mechanic (£25/hour !! )

burwoodman

18,718 posts

268 months

Friday 18th June 2004
quotequote all
The sad thing is these "mechanics" don't know there a55 from their elbow. My experience with BMW is if in doubt they simply change a bunch of parts the diagnostic tester tells them.

Glad ive got the 5 yr service package for £750 (includes brakes)

Munter

31,330 posts

263 months

Friday 18th June 2004
quotequote all
thirsty said:
Dealer for Warranty, an independant garage for everything else.



Totally agree with that. Focus go's in to the Ford dealer to get the book stamped, but when it needed brake pads/disks, thats an independant job.

TheHobbit

1,189 posts

273 months

Friday 18th June 2004
quotequote all
RichardD said:
An Apple Mac for example can be used to plant a virus on an alien mothership and save the earth - did you know!! ahem



That's because in the middle of all that alien technology, the aliens were kind enough to fit an rs232 port in the middle of the dashboard and of course, all alien systems run some flavour of unix, don't they?

>> Edited by TheHobbit on Friday 18th June 09:33

gh0st

4,693 posts

280 months

Friday 18th June 2004
quotequote all
TheHobbit said:

RichardD said:
An Apple Mac for example can be used to plant a virus on an alien mothership and save the earth - did you know!! ahem




That's because in the middle of all that alien technology, the aliens were kind enough to fit an rs232 port in the middle of the dashboard and of course, all alien systems run some flavour of unix, don't they?

>> Edited by TheHobbit on Friday 18th June 09:33


Alienux?

jacko lah

3,297 posts

271 months

Friday 18th June 2004
quotequote all
It's a piss take as they subcontract all the easy stuff to (dis)Honest Harry's Car Repairs The Arches Dagenham. He charges them £14 quid an hour including coming into town to pick up the cars, with a transporter.

The last repair I paid for on my car was fitting of the starter motor (off internet for £32) after I'd spent 4 hours not getting anywhere near the last bolt.

They charged me £15 quid, cause "we got the appentice to do it and it only took him the morning. - Still he'll know how to do it next time in a hour so that's what we have charged you for"

£15 quid an hour for the Appentice or £18 an hour for the trained expert. They do lots of work for main dealers when they are busy.

wedg1e

27,002 posts

287 months

Saturday 19th June 2004
quotequote all
Right, that's it... I'm going to have to quit my job and go into fixing cars. Even if I only charge £20 an hour, that's twice what I get now...

Ian

pwig

11,998 posts

292 months

Saturday 19th June 2004
quotequote all
After working at a main dealer for some months now, I can only say, that you wouldn't not belive how many 'local' garages just give up and get us to look at the problem.

chris.mapey

4,778 posts

289 months

Sunday 20th June 2004
quotequote all
The fact that is all missed from the reasoning in the above posts, is that the labour rate charged out is what covers the costs of the dealership.

You take the costs of the manufacturer designed & supplied refit, the heat light & power bill, all the staff wages, etc. This is then calculated back to work out the hourly rate to charge out. (ie we have 6 technicians who work an 8 hour day, five days per week = 240 hours per week).

I would not disagree that there are some rip-off main dealers out there (I think I have worked for one or two of them...)but think a little behind the hourly rate before mouthing off at the service adviser on about £10k OTE (yes really).

Hope that helps. Sorry for the long post / rant, but think who is paying for the nice china cup of freshly ground coffee you were offered by the attractive receptionist when you arrived. (I wish - )

Chris

RobDickinson

31,343 posts

276 months

Monday 21st June 2004
quotequote all
pwig said:
After working at a main dealer for some months now, I can only say, that you wouldn't not belive how many 'local' garages just give up and get us to look at the problem.



Isnt that because the local garages cant afford every manufacturers diagnostic systems etc al. And isnt that mainly because of the closed systems manufacturers design purely to shut out the small local garages?

The motor trade isnt exactly known for its openes.

Glad I'm dealing with mazda atm. £63 for my 1st service.