Is £90 per hour a reasonable labour rate for a car workshop?
I took my Ford Focus (a very nice car) to a Ford dealer for its first service on 12 October 2012 with 4233 on the clock and everything was OK. This week I went to the same Ford dealer for the second Service with 8824 miles on the clock and everything again was O, except that the invoice said that the number plate light required attention, meaning fitting a new part for £24.80 plus labour at £90 plus VAT. I asked the receptionist how long it would take and the reply was that I could wait for the repair to be done, which would take about an hour. I calculate that £90 per hour for a five day week of 40hours would amount to £3600 per week or £187,200 per year.
Garage ‘labour rates’ are not what the mechanics are paid. The cost covers the rent or mortgage on the building, commercial rates, services, everything else associated with running that type of business in that locality where every square metre has to pay for itself or the garage goes bust. But you learned the hard way never to have a garage replace a 50p bulb using 15 minutes of 'labour'.
Answered by Honest John on