Running a Shop Finance Labor Rate

Report: Shop Labor Rates on Steady Rise

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March 9, 2016–Independent shop labor rates have risen 34 percent on average, up to $82 per hour, since 2005, according to the latest Lang iReport. 

Dealership rates have risen 40 percent between over the same time period, up to an average of $106 per hour. 

The overall purchased service dollar amount rose 40 percent for light vehicles. 

Labor rates vary by approximately 20 percent across different regions of the U.S., and dealer labor rates average approximately 30 percent higher over independent shops, according to the report.

Some dealers have implemented a two-tier labor pricing structure in order to stay competitive with independent shops—a higher one for newer vehicles and a lower rate for older vehicles that are typically owned by more cost-conscious customers. 

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