Labour Costs for a Car Service

Rayve on 29/11/2017 - 14:45
Last edited 29/11/2017 - 14:48

I recently took my 10 month old car in for the 10,000 km routine service and I was wondering about the labour costs - $170. This was for 35 minutes of work. Whilst they had the car for about 2 hours the majority of that time absolutely nothing was being done to it. I know this because my front and rear dashcams recorded the whole time and most of the time the car was sitting unattended. The actual 'labour' was done within 45 minutes of me handing over the keys but some of that time was sitting waiting to be moved from the driveway. After the 35 minutes for a quick oil / filter change and a very brief inspection nothing further was done until the car was eventually parked out on the street in front of the dealership for 40 minutes before they came to tell me it was ready.

Did they just drag the time out so they could charge me $170 for 'two hours' work even though the actual time was 1/4 of that? Is this normal practice in this industry?

I had the work done at the local dealership and it a fairly large one covering a number of brands including Nissan, Mercedes-Benz, Subaru, Honda and several others.

They did not, on paper, over-charge me, since the total they charged as actually a few cents less than the fixed price for the service charge but the majority of that charge was for the labour with a less that $70 on oil and filter.

Automotive

Comments

  • [Deactivated] on 29/11/2017 - 14:47
    +2

    you got jipped

    • Rayve on 29/11/2017 - 14:50

      Thanks for the reply. I will be probably be posting to social media and the the local newspaper about this. The hourly rate of $290 seems a tad excessive to me too.

      • k-rokfm on 29/11/2017 - 15:00

        But you said they ‘made you wait 2 hours to charge you for 2 hours’ yet the hourly rate is $290? Something doesn’t add up…?

        • Rayve on 29/11/2017 - 15:04

          You misunderstand. I simply extended the '$170 for 35 minutes' to an hourly rate and got the $270. I could have had the car back after that 35 minutes work but they kept me waiting for whatever reason until they finished work for the day.

        • dcep on 29/11/2017 - 15:05
          +2

          OP expects they only charge right to the minute of their hands on his car which is somewhat naive.

          $170 labour / 35 minutes from his dash cam x 60 minutes per hour = $290/hr

          that's crazy way of saying they're charging at $290/hr labour rate

          obviously you can't expect them to charge only $55 for 35 minutes based on industry average of $95/hr

        • k-rokfm on 29/11/2017 - 15:06

          @Rayve:

          Car places don’t charge by the minute. You more likely got charged for an hour, $170 for the hour sure is pricey but probably not unrealistic for the shop you went to (if you say they do merc). Shop around and find somewhere cheaper.

          Do you have an itemised receipt? This should clearly state how long the charged you for and how much per hour it is

        • Rayve on 29/11/2017 - 15:19

          @k-rokfm: No, just a single labour charge of $170, no time given.

        • k-rokfm on 29/11/2017 - 15:26

          @Rayve:

          Does it say quantity 1? If so then it would have been charged for an hour. If not call them up and ask for clarification.

          It’s likely you got charged the book rate - if a job says it takes an hour and they do it in 35 minutes then they’ll charge an hour.

        • Seraphin7 on 29/11/2017 - 15:43

          @phunkydude: Actually I think you should be able to expect to be charged only for the actual time spent on labour. I appreciate a business might stipulate a "minimum charge", but in the absence of this, why should the consumer be asked to pay for something they effectively didn't get?

        • dcep on 29/11/2017 - 15:45

          @Seraphin7:

          same reason why you never see $55 labour oil change exists anywhere in australia that came with logbook stamp servicing.

        • boo hoo on 29/11/2017 - 15:51
          -1

          [@phunkydude](based on industry average of $95/hr):

          is that the rate for a stealership?
          surely not for the worker.

        • k-rokfm on 29/11/2017 - 16:03
          +1

          @boo hoo:

          Id have to say $95 would be very good. Do electricians or plumbers charge the rate for just the employee? No. The dealership has employee benefits, overheads and equipment to pay for to say the least.

        • Rayve on 29/11/2017 - 18:37
          +1

          @phunkydude: Why, other service industries do this having far smaller appointment / time blocks. Imagine if you went to the doctor for 5 minutes and was charged an hourly rate.

        • k-rokfm on 29/11/2017 - 19:13
          +1

          @Rayve:

          Because they charge a much higher rate and much lower visit time. You go to the doctor for 5 minutes and that’s $70. Go to a lawyer for 6 minutes, $100.

  • dcep on 29/11/2017 - 14:51
    +1

    the labour - can be hourly rate

    can also be fixed labour cost for that particular service

  • geek001 on 29/11/2017 - 14:51
    +3

    A normal service is basically change the oil and filter on your car. Most of the time, the car will sitting idle while the oil drains. 35 mins labour is about right. The actual job takes a few hours though because of the waiting.

    $170 for 35 mins of work is pretty steep though.

    • Rayve on 29/11/2017 - 15:02

      The oil was replaced during that 35 minute period. There was some drain period but the time between raising the car on the hoist and lowering it and pouring in the oil was pretty short, certainly well under 30 minutes.

      • geek001 on 29/11/2017 - 15:14

        Oh.. I always wait till the oil finish draining completely before putting in new oil in my car. I also run my car for about 5-10mins to get the engine warm but not too hot that I burn myself trying to get the oil drain nut off. :) Maybe the dealer mechanic knows best.

        Maybe go for non-dealership logbook servicing next time? Everyone knows dealership servicing is a rip-off.

  • dcep on 29/11/2017 - 14:56
    +2

    shop around and ask for fixed price

    don't just drive in and wait for the bill

    you can get anywhere between $99 oil change (labour/oil/filter all-in , of course to check what oil) , and up to $350+ oil change

    there is also $50 bux under tree oil change.

  • Richardc on 29/11/2017 - 15:15
    +2

    So you are saying because they do it quicker they need to charge you less?

    • jellykingdom on 29/11/2017 - 16:04
      +1

      That's how $/hr vs Fixed Price works…

  • TheBilly on 29/11/2017 - 15:19
    +1

    Whether you got ripped off is relative to what agreement you had with them. If they quoted you a lump sum of $170 for the service and you accepted, then this is not being ripped off, this is poor negotiation or shopping around skills. As long as they do the work that you guys agreed upon, it doesn't matter how much time was spent on your car - if it takes them 3 minutes to change oil, that is their benefit and efficiency and opportunity to make money. If you agreed to an hourly rate agreement with them which is based on their materials cost and labour costs x time spent, then you should question the amount of work that was done and yes they ripped you off.

  • spackbace on 29/11/2017 - 15:47
    +2

    10,000km service done @ 10 months…? What car? Hmm might be Mazda, they're pretty loose with their monthly gap.

    Anyway, by all means shop around but make sure you say 'logbook service', not just some service special.

    At the end of the day, you paid $170, which you say is about $70 worth of consumables, and $100 labour.

    Good luck getting a logbook service done anywhere for under $150 from what I've seen.

  • spackbace on 29/11/2017 - 15:49
    +1

    I know this because my front and rear dashcams recorded the whole time

    Did you have any signage to say they were recording, or tell them?

    You know it's illegal to record anyone without their prior knowledge, right? As such it isn't admissible

    • Rayve on 29/11/2017 - 18:29
      +4

      Untrue. This was a public place, in full view if I had chosen to stand at the window. They have no expectation of privacy. In fact there are several security cameras around and never once was I asked if I wished to be recorded. You may be thinking of recording conversations, particularly telephone conversations, for which different laws apply.

      Bear in mind that I have no intent of publishing this video, nor was the recording done deliberately. I am merely trying to establish what is industry standard practice in this area.

    • pegaxs on 12/12/2017 - 16:03
      +1

      It was inside a private vehicle. You don’t need permission to film inside your own personal property. You can also film anywhere that there is no expectation of privacy, ie: in the middle of a workshop area.

      It is also acceptable to say that if the camera is in the open and visible, then it was not filming covertly. It would fall under security and would be the same as the plumber complaining about being on your home surveillance system.

      The main question would have to be, was OP trying to be covert in recording in the attempt to catch someone.

      Another thing to consider is that each state has its own version of what you can and can’t film/record. What may be allowable in NSW may not be allowed in WA. So… ymmv.

      Edit: sorry Spack, just saw the date this was posted. :D

      • spackbace on 12/12/2017 - 16:04
        +1

        2 weeks later :P

        • pegaxs on 12/12/2017 - 16:05
          +1

          Beat you! Added my edit 6 seconds before your reply… hahahah :P

        • spackbace on 12/12/2017 - 16:05
          +1

          @pegaxs:

          Lol I saw :P

          Never got a resolution to this either, would've loved to have seen the itemised invoice:

          They did not, on paper, over-charge me, since the total they charged as actually a few cents less than the fixed price for the service charge but the majority of that charge was for the labour with a less that $70 on oil and filter.

        • pegaxs on 12/12/2017 - 16:08
          +2

          @Spackbace: yeah, me too. After working for years in stealerships as a service advisor and technician, most of the time it was a fixed charge for servicing.

          I wonder if OP would have complained if it took 3 hours for the service because they found something else. I know that sometimes that can happen. But $170 sounds pretty standard for a 10k service…

  • aussieprepper on 29/11/2017 - 15:57
    +2

    That is about average cost i would say.
    Smaller cars like a Honda Jazz or Toyota Yaris can be serviced for about $130 from a normal mechanic. Dealerships always charge a premiunum and do the worse/least job. Had mates do stints at dealership they told me what goes on.

  • smashed on 29/11/2017 - 16:06
    +1

    Where did the 2 hours come from?
    Just because they had it 2 hours doesn't mean that they charged it in labour.
    They have to pay for new oil and also oil disposal.
    But yes, the rest is their fixed rate to literally check a few things look OK. Ironically it would be cheaper to get those things checked in a fixed rate safety inspection

    • Rayve on 29/11/2017 - 18:33

      Yes, the $170 was a separate labour charge on top of the charges I had for oil and oil filter which had their own itemised costs.

      It is not only the cost I am querying but also why I was made to wait for over an hour after the service was done - was this to 'pad out' the time to make the labour charge seem more reasonable do you think? The car was sitting parked on the street most of this time and this is where I ultimately drove away from.

      • spackbace on 29/11/2017 - 19:02
        +1

        Normally the car should get cleaned.

        Why are you asking us? Why didn't you ask them at the time? Did you just sit there simmering on it or something?

        Simple communication - address the problem at the time, don't wait till you're infront of the pc.

        • Rayve on 29/11/2017 - 19:53

          I'm asking because I'm curious. I'm not 'simmering'. I simply did not know if this was an industry standard practice or not.

          Oh, and my car was not cleaned in any way, either engine bay, interior or exterior. The whole 'inspection' took a few minutes and most of the time I was sitting in the lounge waiting for my car the service was over and the car was parked outside on the street. Why did they make me wait for much longer than was needed I wonder?

        • spackbace on 29/11/2017 - 20:06

          @Rayve:

          my car was not cleaned in any way

          That's the fault of that dealership. I've worked in 3, different manufacturers, and all 3 would clean the cars before handing them over, unless the customer didn't want it

  • wolfazrael123 on 29/11/2017 - 16:23

    Since you mentioned the labour cost was $170, I'm assuming that he charged you for oil and oil filter on top of this $170.

    My mechanics would usually do a short test drive after the change of oil and filter, (based on this I was given suggestion regarding wheel alignment, although he doesn't do wheel and tyre job himself). I'm not sure if this should be included in a standard service.

    Besides, I don't get a surprise when I receive the invoice, and actually I'm aware how much I would get charged apart from potential change of parts (of course he always tells the price of parts before I say yes to the replacement). In the end, if the service was done properly and you are charged for what you were quoted, there is no need to argue about the time they spent on your car.

    I usually pay 130 for standard service (including labour cost, oil and oil filter). The first mechanics charged me $120. Then I moved to the current one because he was close to my work. Now I still go to him because for a few times he gave me free suggestion and saved me quite some money when someone was trying to rip me off. Plus he buys me coffee.

    I don't think that it is necessary to pay as much as $170 for labour cost only, although it depends on your agreement with them. Find someone with good reputation and usually they don't charge you excessively, since this wouldn't give them a good reputation. lol

    • spackbace on 29/11/2017 - 19:00
      +1

      Is anyone fully reading the OP? While $170 labour was itemised, OP did not pay $170 for labour… I think some people are missing that fact.

      • Rayve on 29/11/2017 - 20:01

        Yes I did. I paid $170 for labour as itemised on the bill plus additional costs for oil, filter and sundries. Where did I write that I did not pay $170 for labour. In fact I mentioned it quite clearly in several posts before your post.

        To quote myself:

        "I was wondering about the labour costs - $170"
        "…a single labour charge of $170"
        "Yes, the $170 was a separate labour charge on top of the charges I had for oil and oil filter"

        I think you are missing those facts. How could I have made that clearer? Should I have posted a redacted copy of the bill itself do you think?

        • spackbace on 29/11/2017 - 20:05
          +1

          I paid $170 for labour

          They did not, on paper, over-charge me, since the total they charged was actually a few cents less than the fixed price for the service charge but the majority of that charge was for the labour with a less that $70 on oil and filter.

          So your Capped Price Service charge was ~$240…?

  • soupkitchen on 29/11/2017 - 18:11
    -1

    Hi.

  • Strahany on 29/11/2017 - 23:34
    -1

    Meanwhile, I only have to pay $60 per hour for labour; can't imagine ever paying dealer prices.

  • RookieError on 12/12/2017 - 14:14

    If you bought a new car, it normally goes with 3 years+ warranty provided you go to them for service or the same brand centres which entails these prices (normally there is a cap). You are able to surrender your warranty by going to private service places and usually acquire a good saving on the service. What i normally do if i have bought a new car is to conduct service from the dealership during warranty period then find a private place the year after. In terms of your question regarding price, yes that is the norm, they discount somewhat on vehicle purchase but get it back in service. In terms of duration of service ofc dependent on whats being serviced and whether any faults are found, the actual work should take average 20~60 mins and then they need to fit in your car in their schedules and move cars around which is why the normal wait is 1.5~3 hours.

    • pegaxs on 12/12/2017 - 16:13
      +1

      You are able to surrender your warranty by going to private service place

      This is incorrect. Dealers want you to think this is the case, but it isn’t. So long as the service is done within manufacturers standards/requirements/specification, it will not void your warranty.

      If the vehicle is still under warranty and you don’t have it serviced to the manufacturer’s maintenance schedule, you may void your warranty. As long as the service is carried out in accordance with the manufacturer’s specifications, any licensed repairer can do it, not just the dealer from whom you purchased the vehicle.

      Source: Fair Trading NSW website

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