Labour charges depend on the car repair
When pricing out the labour charges on vehicle repairs, the two most common methods used are straight time and flat-rate time. Customers often wonder, what is the difference between the two?
Straight time labour charges are based on the actual time the technician has spent working on your vehicle.
Flat-rate time labour charges are based on an average time it should take a technician to complete a particular job, regardless of how much time it actually takes to complete the job.
The time charged to the customer is based on similar jobs performed by other technicians, and these times are documented by an independent third party and recorded in a manual, which is purchased by dealerships.
There are a few companies that sell these.
This may leave you wondering: Which one is better? The answer is, it depends on the repair.
For common, repetitive repairs, flat rate is used and is better (i.e., an oil change). Our dealership charges 0.3 hours of labour for an oil change. If we charged the service based on straight time, the charges could be less or they could be higher because each technician would take a different amount of time to complete this job. A technician’s work experience, tool investment and work habits all impact how quickly or slowly a job gets done.
If you want a common price for any particular job, then you have to use the flat-rate time pricing model, to even out the differences in each technician’s job completion time.
For complicated diagnostic work and repairs, straight time is most commonly used, as no specified labour repair time can be reasonably assigned to diagnosing these problems.
Each job/solution is unique and different, and a fair flat-rate time is almost impossible to set.
Straight time repairs typically involve engine noises, electrical system or driveability issues, which are not easily diagnosed. They can require an hour or more of diagnostic work time and even longer to repair.
All repair shops are required by law to provide accurate estimates to within 10 per cent of the final price, and customers must authorize any work (or additional repairs/costs) before that work is performed. A service adviser or technician will explain to the customer why the extra work should be done, and how much it will cost.
New car dealerships promote common-offer dedicated service programs at flat-rate pricing that cover a wide range of maintenance and light repair items such as oil changes and brake-pad replacement, which are very competitive in price.
Most dealers carry a very large assortment of name-brand tires (all-season and winter) and will match competitor prices, and many even offer tire storage services.
The dealership will own a large assortment of ‘special tools’ that are brand specific and customized to make some repairs easier to do. Those tools are shared by all technicians at the dealership.
Most technicians own the rest of the tools that they require. Technicians can have $50,000 or more invested in their tools; they make this investment to ensure that they have what they need to get the job done right the first time and in the least amount of time.
All dealerships carry over-the- counter parts for the do-it-yourselfer, and some offer corporate-branded apparel/clothing, accessories, collectibles, gifts and gift cards. The dealership is a great place to get something for that special someone.
So your choice should be clear: You buy your new vehicle at a new car dealership. It stands to reason that you should service your vehicle there as well. This column represents the views of TADA. Email president@tada.ca or go to tada.ca. Bob Redinger is president of the Trillium Automobile Dealers Association and is a new-car dealer in the GTA.