Auto Dealer Service Department Labor Rate

[PhotoRecon]

My local GM dealership recently raised their service department labor rate from $45 per hour to $70 per hour. Other dealerships in the area have reportedly raised their labor rates as high as $90 per hour.

I was wondering what dealership in other areas are currently charging.

[David Fermani]

Re: Auto Dealer Service Department Labor Rate

$40 is dirt cheap IMHO. I just paid $145 @ the local MB dealer. I can't remember the last time I saw anything under $100 @ a dealership? Body shop labor rates are totally different though.

[visaliaipa]

Re: Auto Dealer Service Department Labor Rate

Sounds about right......They can get pretty high. I think most of the "book" jobs. Basically, if im mistaken correct me, they have a labor book that says a brake job takes 1.5 hours and thats how they charge you.

I know when I had body work done my my truck they used the same book and times. The only difference that made the 2nd one cheaper is they were a State Farm preferred provider and state farm policy holders get a brake on the labor rate.

[Fly Bye]

Re: Auto Dealer Service Department Labor Rate



Service department rates in the Nor Cal were $90 per hour 10 years ago.

[Fly Bye]

Re: Auto Dealer Service Department Labor Rate

state farm policy holders get a break on the labor rate.

[David Fermani]

Re: Auto Dealer Service Department Labor Rate

Yeah, everything is done according to book times usually published by independant companies like Mitchell/Chiltons/All Data. Warranty times are usually lower because they are created by the manufacturer. Some dealers have a progressive/floating scale where things are actually tiered and IMHO unrealistic. Regardless, the labor rate is multiplied by the time it takes to do the job to get the total cost.

[PhotoRecon]

Re: Auto Dealer Service Department Labor Rate

Thanks for the responses. I guess I'm not surprised that the labor rate is even higher outside our area.

In addition to the increased labor rate they're charging retail for parts plus 70 to 100 percent and then using the book to determine the amount of time to bill.

In this area the cost of living and wages are both much lower than most places so what seems inexpensive is actually pretty high.

So far the shop business seems to have gone elsewhere, but I don't know where. When I walk through the shop area its just empty. I've never seen it like that ever before and especially over the past 12 years.

Regards...

[cnfowler]

Re: Auto Dealer Service Department Labor Rate

$40 an hour is what they were charging in the '60s. Ok, not really, but it seems like it. I haven't seen labor rates under $80 in years. I thought $100 - $120 were the norm nowadays. Its no wonder they raised their rates. Have they been under a rock for the last 10-15 years?

Colin

[JoeDirt]

Re: Auto Dealer Service Department Labor Rate

Wow- $40/hour is cheap for a dealership! Over here they're all $90/hour, because my ex-buddy who did work on the side (one bay shop) was charging 1/2 rate, and he was at $45...

[PhotoRecon]

Re: Auto Dealer Service Department Labor Rate

Have they been under a rock for the last 10-15 years?

Colin

One of the other two dealerships in town was purchased by a family with dealerships in other communities around the state. They raised their rates and everyone else in town followed.

I don't know why they didn't raise them a long time ago. Could be they had to keep pace with the other dealers in town who wouldn't raise their rates.

Regards...