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Auto Repair Shops

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Worrying whether or not you were overcharged for your car repair is an awful feeling. There's tons of advice on how to avoid getting ripped-off, but few discuss the actual car repair prices. We really need to look at the charges on a car repair estimate or auto repair invoice to determine if we're paying too much.

The focus needs to shift from giving outdated and ineffective advice to addressing the specific charges. Are they legitimate charges? Can they be justified by industry guidelines?

Now car repair estimates can be confusing. So let's break it down to get a better idea if your auto repair shop is billing you appropriately.

First, a glossary of terms is in order, as the auto industry has a language of its own...

Aftermarket Parts: …show more content…

With OEM parts, you don't want to pay more than MSRP, although most people do without realizing it. Premium aftermarket parts are similarly priced across brands, although beware not to pay more than MSRP, which again, many folks do. Used parts prices are all over the place, so pick the price in the middle.

Auto Repair Labor

Labor is billed in tenths. So 1.0 equals 1 hour. 1.5 equals an hour and a half.
Labor rates range from $60 to $100 per hour at local repair shops and $80 to $140 per hour at the dealer level. Labor times are based off established industry guidelines, which are frequently abused.

If you don't see the shop's labor rate posted on the car repair invoice, ask your service center for the rate. Repair shops can manipulate the labor rate (among other things) with a labor matrix. Matrix pricing is a complicated and ethically questionable practice discussed at length in RepairTrust literature. What you need to know is that you can pay as high as $150 per hour rather than the posted labor rate of $105 per hour.

Thus, you'll want to multiply the number of hours billed (which is also often not posted) by the shop's labor rate to determine if you've been charged …show more content…

So ask questions.

Here's a "clear" labor description for a 30,000 mile service on a Toyota Camry.

Performed 30,000 mile service per customer request, and in accordance with manufacturer guidelines. Changed oil and filter, installed new air filter, cabin filter and performed all necessary tests, checks, and procedures, including road test (miles 30,123 - 30,125). Performed lubrication services and confirmed proper vehicle operation. Set tire pressures, and checked fluids, belts and hoses. Note: vehicle is pulling slightly left. Needs alignment

Miscellaneous Charges

The bulk of your car repair invoice will be parts and labor, but we can't forget about Miscellaneous Charges. These charges can include, but are not limited to, shop supplies - rags, chemicals, hazardous waste, disposal fees, waste oil ...etc. The latter of these may be billed out separately in a summary at the bottom of your repair

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