UK car owners are being charged an average of 44% more for labour at franchised dealers than five years ago, guarantee specialist Warranty Direct.co.uk claims.
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In comparison, the national weekly wage for a manual worker has increased by 12.1% since 1998, with employees as a whole gaining a rise of 20.8%, the firm claims.
An analysis of franchised dealer labour rates recorded across 30 manufacturers nationwide shows that the maximum hourly charge to repair a car has increased from an average of £52.96 in 1998 to £76.37 this year. Independent garages currently charge between £28-41 an hour.
The labour rates for the most expensive Volkswagen technicians in the UK have almost doubled from £51.11 to £100 –the biggest rise since 1998. Over the same period, BMW have recorded an 85.6% rise, Volvo 79.2%, Land Rover 77% and Alfa Romeo 66%.
The most expensive dealer recorded by Warranty Direct in 2003 so far – a BMW franchise – charges an hourly labour rate of £115.62 including VAT.
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By GlobalDataAt the other end of the scale, the Mazda hourly rate has increased by just 2%, with similar minor increases recorded by Citroen (up 3.3%) and Renault (up 3.6%).
Collectively, executive and prestige marques have recorded an average rise of 63.5% in labour, with the Top 5 selling manufacturers in the UK (Ford, Peugeot, Renault, VW and Vauxhall) recording a 42.4% rise – slightly below the market average.
“Customers are having to pay more and more for the salubrious surroundings of a franchised operation. Admittedly, a shortage of skilled technicians, with many moving into the independent sector, is forcing rates of pay upwards too,” said Warranty Direct spokesman Duncan McClure-Fisher. “It’s also a bit ironic that as new car prices have tumbled, squeezing dealer profit margins on the way, labour rates have rocketed.”
Unsurprisingly, the cost of labour varies across the UK. For example, a Ford dealer in Greater London will charge £82.25 an hour whereas his counterpart in Crieff, Perthshire will cost just £32.90 – a difference of 150%.
“The advice is to shop around – and don’t ignore reputable independent garages, national chains or specialists. The majority of these are usually staffed by vastly experienced former franchised technicians,” McClure-Fisher added.
As a result, the cost of labour as part of the overall repair bill has risen by an average of 60.8% since 1998. The biggest rise is Chrysler Jeep, whose labour ratio has jumped from almost 24% of the average repair bill in 1998, to just over 54% today.
Although Jaguar labour rates have increased by the market average of 44.2%, the mechanic’s time now makes up 11.5% less of the final repair bill.
One of the most common mechanical ailments – a broken radiator – has seen the average repair bill increase by 57.4% with the labour charge up 118%, Warranty Direct claims.
