How Is Auto Repair Cost Determined?

Auto repairs are not cheap or easy to perform in many cases. Sometimes they can put a significant dent in your wallet and you may want to know why. Many people do not understand how auto repair costs are calculated and why they have to pay so much for what may have, at first, seemed like such a minor repair job. Below is a broad overview of how cost and price is determined for any auto repair job.

Labor costs

The first major factor that must be considered before any repair cost can be calculated is the cost of labor. Your mechanic’s shop will probably have a standard “per-hour” rate that they charge for work and they will also have a “book time.” Book time is the estimate average time that it should take for your repair job to be completed by a factory-trained mechanic. Many shops add a little cushion to the book time just in case a less experienced mechanic gets assigned to the job. Typically, labor rates vary by geographical region, but you can expect anywhere from $80-$150 to be the norm in the U.S. this is why you want an experienced auto repair shop working on your car so that labor costs don’t mount simply because more time was spent diagnosing you car trouble and repairing it than was truly necessary.

Parts and supplies

As anyone who owns an older car or a newer car with lots of unique parts and equipment knows, special ordering the parts they need for the auto repair is expensive for the shop. They need to have the equipment necessary to repair the car first off, and they need to have parts in hand to replace anything that may be damaged or unusable. The more specialized equipment and parts they need, the more expensive it is for you to have your auto repair completed. And many shops also tag on about thirty percent to the costs because they do after all, have to make a profit and stay in business.

Cost of business

Running any business is an expensive proposition and a repair shop is no exception. Hiring qualified mechanics isn’t cheap, nor is buying the standard equipment that the shops need for most common repair jobs, buying the computers and diagnostic software to diagnose computer issues also mounts the costs. Then, the repair shops also have to keep their technicians and mechanics trained. I mean, they would go out of business of the shops couldn’t keep up with the latest developments in automotive technology and you would not be happy with your auto repairs. These are just the normal costs of doing business. The shops factor these costs in when determining how much to charge each customer for a specific repair job.

There are a lot of factors that go into determining how much you can expect to be charged for a specific auto repair job at your mechanic’s shop. The amount of labor necessary to complete a project keeps a mechanic from working on other projects so labor must be calculated accordingly. In addition, the shop must be able to purchase the parts and equipment it needs to complete your auto repair which often means adding on fees when ordering expensive or unusual parts and equipment necessary for specific repair jobs. The shops must also be able to stay in business so they must account for the regular costs of working and conducting their business in the price of any auto repair job.