Good news

Labour rates fall for first time in five years
Wednesday, 23 September 2009
Franchised dealer labour rates have fallen to an average of £90.16 an hour, the lowest level in five years, according to the latest research from Warranty Direct.

The research shows franchised dealer rates fell year-on-year by 4.8 per cent while independent sites rose by 0.8 per cent to an average hourly rate of £56.10.

Warranty Direct said its analysis of over 5,000 garage charge transactions nationwide suggests franchised dealers have to compete more on price than before, pushing averages down for the first time since the annual research into labour rate charges started in 2004.

The average hourly rate across franchised and independent garages is £75.85.

Regional variation
The survey found rates vary across the country, with the average in Greater London standing at £94.44 per hour - 54 per cent higher than Cornwall, where the average hourly rate is £61.15.

"The unsustainable increase in franchised dealer rates has hit the buffers," said Warranty Direct's managing director Duncan McClure Fisher.

"It's like house prices - the way some workshops were increasing their charges year after year couldn't continue. Even so, you could still be charged as much as £190 an hour if you're not careful."

Labour rates peaked at £198.86 per hour in 2008. The highest now is the £190.35 being charged by one London-based garage.


Top 10 expensive regions for garage labour rates

1 Greater London £94.44
2 Middlesex £91.48
3 Hertfordshire £88.71
4 Surrey £87.66
5 Buckinghamshire £86.49
6 Berkshire £84.09
7 Warwickshire £82.10
8 Kent £81.84
9 Bedfordshire £81.66
10 Essex £80.54

Source: Warranty Direct
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