ALT-1 The Disappearing Independent Auto Repair Shop
Several years ago, the owner of a local chain of auto parts stores made reference to independent auto mechanics and repair shops as "dinosaurs". The word got back to one of my fellow shop owners. He has not purchased a single part from those stores since that time, and he is still "going strong".
The independents play a very important part in the auto repair industry. Granted, most people will return to the dealer for repairs that are covered under the manufacturers warranty. However, there are many repairs that are not covered under these warranties, such as brake pad replacement, clutch replacement, timing belt replacement, engine tune-ups, to name just a few.
I think that I would be safe to say that the greater percentage of the cars and trucks on the road today have more than 100000 miles on them. Who is taking care of the maintenance and repairs on those vehicles? I assure you it is not the new car dealers. The new car dealers have tremendous operating costs with their high priced real estate, advertising, and staffing. If you compare the hourly flat rate charged by the new car dealers to the independent shops, you will find that overall, there is a significant difference, sometimes as much as 50%.
If a new car dealer has a $100. per hour flat rate in their shop, the mechanics are not paid 50% of the labor as they were in the "good old days". My guess would be that most dealership mechanics are paid on an average of $20. per hour based on the number of flat rate hours that they "flag" in a weeks pay period. The flat rate is determined by the car manufacturer. If the flat rate for replacing a fuel pump on a particular model is 1.6 hours, the mechanic would be paid 1. 6 times his hourly rate for that job. If the mechanic could perform the job in 1.2 hours, he would still be paid for 1.6, and if the job took him 2.0 hours he would only be paid for 1.6. In most cases, the factory time is not realistic. However, if a mechanic is extremely proficient, it is possible to beat the factory time and there are mechanics who earn in excess of $100000. a year, but I would be surprised if the national average income for dealership mechanics is more than $50000.
Most independent shops also charge a flat rate. The difference is that the independents use flat rate times determined by sources other than the vehicle manufacturers: for example: the Chilton labor time for a fuel pump replacement could be 1.9 hours versus a factory time of 1.5 hours. In most cases, the Chilton time will exceed the factory time. The hourly rate paid to mechanics in independent shops is very close to or the same as most dealerships. Therefore, it is unfair to say that dealerships can attract better qualified mechanics.
The sophistication of today's vehicles will eliminate a lot of unskilled and "shade tree" mechanics. The independent shops and dealerships who are not willing to invest in equipment and training will "fall by the wayside". Independent repair shops have access to the same equipment and data as the new car dealerships. There are lots of skilled, highly trained independent mechanics who will continue to "keep em running" long after the new car warranty has expired.
