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post #1 of 10 (permalink) Old 28th August 2008 Thread Starter
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Cost of repairs

We all understand and appreciate that car repairs and servicing costs are expensive to say the least with labour charges up to 100 per hour in some cases.
Say a Renault or VW agent charges 80 per hour labour has anyone any idea of how much of this charge actually ends up in the manufacturers pocket. As far as I know most agents are independent companies with a franchise type arrangement with the manufacturer but I would love to know who gets what slice of the big fat juicy cake.
If we knew the answer to this we would have a better idea of who is actualy ripping us off at times and we would actually have someone to blame.
I know labour costs can vary across the country depending on wage rates and overheads but do Renault or such get a bigger slice of the cake from an agent in London than one out in the sticks
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post #2 of 10 (permalink) Old 28th August 2008
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Last I knew of renault dealers they have to pay Renault for access to Renaults internet parts/tech site. Don't know how much that is though but I expect the dealers have massive fees as part of their franchise etc.
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post #3 of 10 (permalink) Old 28th August 2008
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I suppose the best comparison would be what hourly rate Renault pay the dealer for warranty work as opposed to what Joe public pay
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post #4 of 10 (permalink) Old 29th August 2008
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Renault don't get any money from the labour charged on jobs. The dealerships are free to set their own labour rates, but must only charge for the standard time set for each job (e.g. service = 2.1 hours). Renault's warranty department will have agreed labour rates for performing warranty repairs.

The dealership also gets a mark up on parts, which (if like Ford) have 3 re-order cycles; stock, rush, IVO (Immobilised Vehicle Order). Each of these stages will be weekly, twice weekly, or next day delivery, and will also incur a sliding scale surcharge on the part price charged to the dealer.

Of course, I haven't mentioned the VAT aspect which heads directly to the Government coffers...

Hope that helps,


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post #5 of 10 (permalink) Old 29th August 2008
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The labour charges are high as a reflection of property values, since the franchise can make a packet selling up (or they could up to last year) they need high labour rates to make enough money to justify not selling out - or to pay the rent whichever it is. Of course now property prices are falling this pressure is reduced. That combined with worse off punters more inclined to hunt down a bargain should see downward pressure on labour rates, or at least less pressure to increase them, and a few staff let go...

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Last edited by bpowell555; 29th August 2008 at 12:46 PM.
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