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How to Determine Auto Repair Labor Costs

Have you ever wondered how a shop determines how much labor to charge for a repair? Most service centers use a book, or computer software called a labor guide. This book lists practically every repair, for almost every car. This guide lists how long a specific repair should take for any make and model car, which allows a shop to estimate the labor charge before a hob is started. The guide gives the labor in time, not in dollars. The service center must multiply the hourly rate by the number of hours listed in the guide. For example, if a labor guide shows the number of hours it takes to rebuild a transmission, the service center would multiply its rate per hour by the number of hours to complete the job. Some shops consider their own experience when estimating the time for a specific repair. Look for a shop that specializes in the car or specific type of repair you need. If the repair you require is the shops specialty, the time it takes to complete the job can be cut in half.

If you are in a Denver auto repair shop for a repair and you suspect that you are being overcharged for the labor, try calling several other shops to ask them for an estimate on the amount of time they have listed in their labor guide. Most service centers will be glad to help you because they have a chance of getting a new customer. Ask them for the amount of time for the repair you need and the name of the labor guide they are using. If the labor price you are being charged does not agree with the labor guide, stop the repair before it starts and ask the service manager how he determined the labor price. If he cannot offer a good explanation, get out of there.You are the one in control. Make sure to get the repairs you want and nothing more.


Many common repairs pop up unexpectedly, so it can be a big help to have a quick price reference at your fingertips. If, for instance you are in a shop for an oil change and you find that you need front brakes, you can compare the price at that service center to the quote on the pricing sheets. This not only insures that you are not being overcharged, but can also save you the time and hassle of calling other repair centers for a price comparison. If the shop gives you a price that seems much higher than the price on your list, you can put off the repair, or you can use the information you have to negotiate a lower price with the shop manager.

You may notice that the service worksheet is smaller than the parts guide. This is because many variables affect the final price for many of these services, so these prices are not exact as the price for parts. Also, if you can plan ahead for the repairs you need, you should call before you bring your vehicle in to the shop so that you can confirm the price and set up an appointment. Call two or three car repair centers to get a good list of basic quotes for the services you need. There are really countless issues that can affect the ultimate price for a service, so you will be quoted the best case price on the phone.

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