The shop makes more money on the job, and the technician who does the work is always rewarded for beating the flat rate (a good technician can almost always beat most flat rate times). What is the reason for this? Since life isn't always a level playing field. You still pay the flat rate even though the real time it takes to repair the car is LESS than the average flat rate time. However, here is how the flat rate can be a disadvantage to you when charged instead of auto repair labor rate per hour. If a shop believes the published flat rate does not provide enough time to complete the job, they can add extra time to an estimate based on the vehicle's condition or previous repair work. The flat rate data is distributed in printed or electronic form, and car dealers and repair shops use it to prepare repair estimates. When a car manufacturer or aftermarket manual publisher creates flat rate tables for different repair jobs on various cars, all of this is supposedly taken into account. There are actually specific car parts that are more pricier to repair. The amount of time it takes to complete a task depends on how much other stuff needs to be removed to get to the component, the job's average complexity, if any special equipment or procedures are needed, the vehicle's age, and so on. Repair jobs are divided into three categories: year, make, and model, with times varying greatly from one vehicle to the next. This is where the various components of your car's repair are itemized line by line and the overall time is multiplied by a flat rate.īut no worries, the truth is that according to research conducted by the American Automobile Association, mechanics use the flat rate to simplify the operation, and customers actually benefit as well.
Many car owners are suspicious of mechanics who charge a “flat-rate” labor fee. Your repair bill is normally based on a typical “flat rate” calculation. If he finishes the job in less than 30 minutes, he will still be paid the full flat rate. When a work that was estimated to take one hour turns out to take three, the employee is still paid at the flat rate - the equivalent of one hour. This flat-rate structure encourages employees to complete as many jobs as they can, but it can also lead to sloppy work if workers choose quantity over quality. If somebody is paid by the work completed rather than by the hour or by the salary, it is referred to as flat rate pay. Mechanics who are paid a flat rate receive a portion of the fee. Many repair facilities charge flat-rate fees for many, if not all, of their services. However, some repair shops could also charge by flat rate instead of auto repair labor rate per hour. If a work that was supposed to take an hour transforms into a 4-hour marathon, then the employee is compensated for all 4 hours. Auto Repair Labor Rate Per Hour Vs Flat RateĮmployees are paid for the amount of time they currently work in a shop that pays by the hour.
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