Why do auto shops charge so much for labor?

Parts, part marking, and workmanship are the primary components of an auto repair invoice. The labor and parts margin is how most of these charges cover general expenses (utilities, tools, diagnostic equipment, information systems, etc. A mechanical charge for labor is not a simple salary paid to the employee who repairs the car). It also covers all the costs and overheads of running businesses.

This applies not only to mechanics, but also to other professionals who charge by the hour. Accountants, lawyers, consultants, anyone who charges an hourly rate must also cover these general expenses. You must collect sales tax on the total charge for parts and labor for the repair services you provide. For additional information, see TSB-M-81 (S), Taxable Status of Supplies Used by Auto Body Repair Shops.

This includes towing the vehicle to your repair shop, an external repair shop, or other location as directed by the vehicle owner. After analyzing a bill that could also include expensive parts, many auto repair shop customers are left scratching their heads and wondering if they are being scammed.

Leave Message

All fileds with * are required