What are reasonable consumer part & labor costs for auto repairs?

Auto repair shops vary in their part and labor costs. Prices can be dependent on the type of service center and the area where it is located. Some independently-owned service centers or dealerships may charge slightly more for common car repairs than a service center that is part of a large chain of automobile repair shops.

According to the Federal Trade Commission (FTC), the American Automobile Association (AAA) and the National Association of Attorneys General (NAAG), knowing a little bit about how your vehicle works and how to recognize common car issues is a good start to avoiding automobile repair rip-offs. You have a better chance of paying reasonable consumer part and labor costs for auto repairs if you know how to choose the right auto repair technician, know what questions to ask and know your rights as a consumer.

Part and Labor Costs for Car Repairs

Auto repairs shops typically set their own prices for part and labor costs, especially if they are a smaller independently-owned service center. Some shops charge a flat labor rate based on a manufacturer’s or independent estimate of the required amount of time to complete the repairs. For example, if a repair shop estimates that it will typically take 3.5 hours to replace all four brakes on a vehicle at a cost of $175 per axle (parts and labor) that will be their flat rate for brake replacements. If the particular technician is fast and experienced and only takes one hour to complete the job, the price is still $175 per axle.                               

Other shops have a set hourly rate and they charge for the total time the repair technician spent working on the vehicle. In other words, if your local car repair shop charges $75 per hour for labor and the technician spends two hours on a brake job, the cost for labor would be $150 (does not include parts).

Before allowing a particular automobile repair shop to perform any work on your vehicle, ask how their labor charges work. Ask about diagnostic charges and find out if they will charge you for diagnostic time if you take the car elsewhere for the repairs. A lot of shops charge for diagnostic time. Consider getting a second opinion and estimate for any complex or expensive car repairs, or if you want to confirm the need for any recommended repairs.

Once you decide to have the repairs performed you should get a written estimate of the part and labor costs involved.

• A written estimate should describe the issue being repaired, any necessary parts and an estimated labor charge, and you should receive a signed copy.
• A written estimate should state somewhere that the repair shop will contact you before performing any repairs that will exceed the specified part and labor costs. In some states this is required by law.

There are three different classifications for automobile parts. It will benefit you to be familiar with the terminology used by the repair technician when discussing car parts that need to be replaced or repaired.

• New parts – Generally new parts are produced to original manufacturer’s specifications, either by the actual vehicle manufacturer or an independent manufacturer. The prices and quality of new parts will vary, based on the year, make and model of a vehicle.
• Remanufactured, rebuilt or reconditioned parts – Basically these all mean the same thing: used parts that have been restored to reliable working condition. Often times, manufacturers will provide a warranty on these replacement parts but not on the labor to install them.
• Salvage parts – Salvage parts are taken from another vehicle to be used as is, without any alterations. For some car repairs salvage parts may be the only source of replacement items but they are rarely placed under warranty for reliability of the part.

Once the repairs have been completed you should receive a detailed repair order that describes the work done, the parts repaired or replaced, a list of each repair completed, the cost of each part and total labor charges. Included on the repair order should be your vehicle’s odometer (mileage instrument) reading from when you first brought the car in and after the repairs were completed. It is important to know you have the right to ask for all replaced parts from your vehicle.

Warranties and Service Contracts

There is no standard warranty for car repairs or parts so make sure you get everything in writing and that you fully understand precisely what is covered. Most warranties are subject to any number of limitations such as mileage, time, deductibles, specified businesses authorized to carry out warranty work and specific procedures to follow in order to receive reimbursement.  You can contact your local consumer protection agency or the Federal Trade Commission for information on your warranty rights.

Numerous auto dealers offer optional service contracts which are issued by vehicle manufacturers and independent companies. Service contracts will vary in price and covered repairs. Often the price is negotiable. There are several points to consider before purchasing a service contract.

• First and foremost, how much will it cost?
• Is there a deductible and if so, how much is it?
• Exactly what repairs will be covered?
• Where do the repairs have to be performed?
• Is there any other warranty that would create overlapping coverage?
• Will the repair costs be paid directly to the automobile repair shop by the dealer or other company, or will you have to pay first and get reimbursed?
• What are the procedures for filing a claim; is prior authorization necessary for specific repairs or for maintaining required maintenance schedules?
• What is the reputation of the service contract company? Contact your local consumer protection agency or the attorney general to determine the company’s status.

Know Your Vehicle

Many everyday vehicle issues can be discovered by listening to your vehicle, noticing any differences in how it handles, detecting unusual smells or noting any accumulation of fluids in the area around your vehicle. The more you know about your vehicle the less likely you will be to overpay for car repairs.