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New blow to motorists as labour rates hit record high

18th September 2012 Print

Motorists have been dealt another blow with the news that garage labour rates have risen to a record average of £83 per hour, according to Warranty Direct’s annual Labour Rates Survey.
 
While the near-record cost of petrol has prompted the Office of Fair Trading to examine the fuel market, Warranty Direct reports that the average labour rate (franchised and independent workshops combined) climbed three percent to £82.86, up from £80.44 in 2011 and over 10% higher than two years ago.
 
Some drivers pay as little as £36.60 per hour while others, like those in Hertfordshire, could be hit by rates as high as £201.60.
 
Based on data from Warranty Direct’s 50,000 live policies, the study of nearly 4,250 workshops shows that the amount you pay per hour at smaller, independent workshops has risen the most dramatically, from £60.68 in 2011 to £64.58 in 2012 – a 6.44 percent rise.
 
Main dealer labour rates are up fractionally too, standing at an average of £95.94, meaning the gap between independent businesses and main dealers has narrowed further, the latter now charging 48.6% more on average than independents (down from 57% in 2011).
 
Surrey is the most expensive county to get cars fixed; an hour of a mechanic’s time costs £98.27 on average. Vehicle owners in Powys, Wales, are charged the least, with the average of £58.46 roughly half the Surrey high.

Cornwall and County Durham saw some of the biggest price hikes, rates were up by 12.96% and 11.97% respectively. In contrast, drivers in East Yorkshire and Pembrokeshire are benefitting from drops in labour charges of 14.68% and 14.36% respectively.
 
Duncan McClure Fisher of Warranty Direct said: “Price hikes continue apace in 2012 and we are now at the point that a simple breakdown could cost an eye watering sum to put right. Some older cars could even be written off by a relatively straightforward mechanical hiccup, especially if you are among the unfortunate group who pay £150 per hour or more.
 
“With the cost of petrol and diesel still rocketing, the latest stats will come as a bit of a blow to those expecting rates to have stabilised.
 
“There is also some evidence that fixed price service deals are being funded by excessive rates for unexpected repairs.”