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Bringing a car in for service or repairs can often become a dyslexic affair for some people, The numbers and the technical mumbo jumbo just don’t compute. Where does it all come from and what are they saying? Does it need to be done? I didn’t know my car had that? Are these parts made of 24k gold? And, why does the mechanic make $100 an hour?
Although there are a lot of confusing questions or details when it comes to your vehicle, we are going to look at the last question: auto repair labor or shop rates. The two terms are used interchangeably in the field, and will be in this article, as they carry the same underlying definition. With confidence, and at the risk of breaking the dreams of those looking at a career in the field, automotive technicians don’t make $100 and hour.
Flat Rate or Hourly Rate
Most people don’t know or understand the concept in which their valued automotive technician gets paid. There are pros and cons to both. An indepth discussion of such is beyond the scope of this article. We just want to reach a basic understanding of how they get paid. Every shop is different, although the consensus points towards the flat rate system as being the most popular.
Flat Rate System. Since all vehicles from year to year, manufacturer to manfacturer, and model to model, differ to varying degrees, a radiator replacement in one car can not be treated the same as a radiator replacement in another car. There are several automotive repair systems out there that give detailed instruction on repairs along with the average time it takes a master mechanic to complete the job (i.e. Alldata). Using a radiator replacement as an example, the repair shop will give you a quote for the work that includes the “book time” or labor that is required to conduct the service or repair. If the quoted labor to replace the radiator is 2 hours and the automotive technician is done in 1, they will still get paid for 2 hours of work. If it takes them 3 hours to do a 2 hour radiator replacement, they will only get paid for 2 hours.
Hourly Rate System. This is the easiest to understand and most commonplace in the everyday workplace. If an automotive technician works from 8am to 4pm, with a paid lunch, they get 8 hours of pay, no matter how much work they have or haven’t done. The repair shop will quote the labor based on the same or similar rates as the flat rate system, but the autotmotive technician is paid based on how long they are “punched-in”, not how many jobs they’ve done or however quick or slow they may do them. If they do one radiator replacement one day and 3 the next day, both over a period of 8 hours, their pay is still the same.
Breaking down the rate
Repair shops largely make their money from one of two things: the labor rate charged or any profits from parts. With the profits from parts aside, let’s look at the labor rate. Nationwide, labor rates can vary anywhere from $50 to $150. This diverse range includes, independent shops, dealers, and specialized facility rates. Whatever it is, that single labor rate must be a figure that incorporates the myriad of financial responsibilities in the automotive service sector: shop supplies, shop equipment/resources, office supplies, building costs, insurance, loaner cars, management salaries, service advisor wages, waiting lounge amenities, courtesy shuttle, technician pay, advancement training, and more. These complex obligations are the same reason why a minimum charge of 1 hour labor might be assessed for any diagnostic related services. Anytime you call a service professional to your home, there is often a similar charge just for them walking in the door.
How much do automotive technicians really get paid?
Not $100 per hour is a safe answer. The United States Department of Labor – Bureau of Labor Statistics indicates that the median annual wage for an automotive technician is $39,450 or $18.97 an hour. If we take this nationwide median hourly pay rate away from our example of the $100 labor rate billed by the repair facility, then only 19% of that billed figure goes to the actual automotive technician. See more automotive technician wage figures from the .
What the automotive technician brings home is only a fraction of what is charged. You may have heard me say it before, but an automotive technician has to acquire a vast skill and knowledge set to be successful in this job. Furthermore, they must continually stay on top of the daily changes and advancements within the field. Does a balancing act on top of a rolling ball visually come to mind? With the steady progress in the automotive field, there is a definite need for automotive technician to earn a fair wage and say on top of the ball.
(Cover image: Seattle Municipal Archives. Flickr)
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