Cost of garage labour falling

THE AVERAGE labour rate at both franchised and non-franchised garages has fallen compared to 2012, according to new figures.

An annual survey of 12,000 cases conducted on behalf of Warranty Direct has concluded that the average labour rate in 2013 is £74.70, a fall of 9.84% from £82.86 in 2012.

Less encouraging is the overall trend of rising labour rates, with the average having increased by 33% over the last ten years. Franchised dealer workshops have proved to be the most expensive in this respect; the highest rate found in 2003 was £152.75, whereas in 2013 several dealers in the South East were found to be charging in excess of £200 per hour.

Regional variations were also noted, with London being the most expensive at an average of £89.33 per hour whilst the cheapest being Angus in Scotland at £62.04.

Duncan McClure Fisher, Managing Director at Warranty Direct, said: “From this year’s results, it appears, for the first time, that consumers are starting to win the price war as labour rates finally start to fall across the UK. We’ve seen almost a decade of spiralling costs to keep a car on the road and it’s good to see dealers competing more on pricing.

“Service clubs, servicing plans, fixed priced servicing and scheduled servicing bundles are being increasingly used by manufacturers and dealers to attract and retain customers. At the same time, consumers are getting smarter and learning how to shop around for better deals.”

By Press Association reporters