Auto Talk

Ballpark Figures
Understanding Repair Estimates

A repair estimate outlines the parts and labor costs required to fix a vehicle problem. Providing the customer with a written estimate is good practice-a key step in a satisfying business transaction for both the car owner and the repair business. In fact, some states, including Colorado, require it.

Labor rates vary across the country from $30 to more than $100 an hour. The factors that go into determining the labor rate include cost of labor in your area, the skill level and certification of technicians, the type of vehicle being serviced and the repair facility's overhead. Because such advanced diagnostic and repair equipment is now required to operate a competitive repair facility, running this type of business is not a low-overhead operation.

"Menu pricing" is a growing trend, in which the repair facility provides a list of set prices for more common repair and maintenance services, such as cooling-system service, transmission flush or fuel-injector cleaning. For other services, shops quote a "flat rate" by referring to a manual that tells them the average time it takes for a proficient technician to perform a specific repair on your make and model of vehicle. This "flat rate" is then multiplied by the shop's labor rate to reach the actual labor charge for the service. Diagnostic work and some types of computer work are not typically priced at a flat rate because the time for these exploratory functions cannot be accurately estimated. Also, the equipment and technical expertise required for diagnostic work demands that the labor rate for these services be higher.

An estimate will clearly state the work that will be performed and the parts (if any) that will be replaced. If you want old parts returned, ask before the work begins.

Make sure you understand why parts may be replaced and what kinds of replacement parts will be used. Auto parts come in many levels of quality. In most cases, you get what you pay for. Ask the service writer questions to learn exactly what you are getting. What types of parts are being installed? Are they original equipment parts used by the automaker, or a professional line made by a reputable company? Is there a warranty on the parts or labor?

Understand that when you sign a work order, you agree to be responsible for the charges stated on the estimate. Colorado law requires shops to gain your permission before they exceed the written estimate by 10 percent or $25 (whichever is less). Clarify this with the service writer so you do not end up paying for repairs not outlined in the estimate. Finally, be available by phone while your car is being worked on to avoid delays.

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