Huge gulf in dealer labour rates

Monday, August 07, 2006

  • London is most expensive for dealer labour rates
  • Cornwall has cheapest franchised dealer rates
  • Motor industry defends fee disparities

Labour rates vary wildly between garages and dependents, and depending on where you live

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Repair your car at franchised dealers in London and you can expect to pay an average of £116.53 per hour for a mechanic, a new survey has found.

The 2006 Warranty Direct Garage Labour Rates Survey found that London is the most expensive place to get your car fixed, with independent mechanics charging £72.28 an hour and franchised dealerships charging an average of £116.53 per hour - although one dealer charged over £170 per hour.

Motorists in Cornwall enjoy the lowest average hourly rates for franchised dealerships, with an average rate of £70.34, while Lanarkshire has the lowest hourly rate for an independent mechanic at £32.12 an hour. Oxfordshire topped the table for the most expensive independent mechanics, with an average hourly charge of £67.20.

Duncan McClure Fisher of Warranty Direct said: 'After a couple of years of excessive rises, mechanic labour rates have started to stabilise, but it's obvious there is still a major gulf between regions, independents and franchised garages.'

The Retail Motor Industry Federation (RMIF) defended the disparity between the prices charged by independents and franchised garages in different parts of the country.

'Franchised dealer labour rates are generally higher overall because of the extra costs that these businesses incur in order to meet the standards expected by both consumers and car manufacturers.

'Costs are naturally highest for businesses in metropolitan areas, especially central London. Those in the regions will be able to charge much less per hour because their overheads are lower.'

What Car?'s own survey into car servicing found that consumers are frequently paying more than £100 per hour for labour at franchised dealers.

Motorists should be aware that they can use non-franchised dealers and still keep their warranty. To protect the manufacturer warranty, the service provider must be VAT-registered and follow the manufacturer's recommended schedule using approved parts.