If you’re in the market for auto repair, you may be wondering what percentage of the companies charge a fair price. Whether the shop has the right tools, has experience with your car’s model and brand, and respects your wishes, can all affect the price they charge. However, a common practice in auto repair shops is to perform low-cost repairs without your consent. The shop may display a notice saying that they only approve repairs that are under warranty, or the shop will charge you for the work even if you’ve told them that you’d like it done.
When it comes to auto repair, labor rates vary greatly across the U.S. and depend on several factors, including location, type of shop, and whether the repair shop is independent or part of a dealership. Even within the same region, rates may be up to $50 per hour. The average wage of auto repair employees is about $85, so if the repair shop charges $80 per hour, you’re likely to pay at least half that much for labor.
Mechanics usually mark up their labor prices by 50 to 60 percent. This is a good rule of thumb and the industry standard for markups is 50-60%. The amount varies by region, vehicle type and make and model. However, a 50 to 60% markup will ensure that all the costs are covered and that the mechanic makes a profit on the repair. If the labor rate of the shop you are considering is higher than the industry average, you may want to reconsider your decision.