Car repair costs: diagnosis, parts, labor and fees
To compare car repair costs, separate diagnostic fees, parts, labor and other charges. Most repair bills use the building blocks explained below.
Parts
This is the cost of the parts the shop installs. Shops usually add a markup over what they pay, which is normal, but you can look up the retail price of the same part to see if the price is reasonable.
Labor
Many shops charge an hourly labor rate multiplied by a standard "book time" for the job. Book time comes from repair guides that estimate how long a typical technician needs, so you may pay the book time even if the job goes faster.
Diagnostic fee
Finding the problem takes time and equipment, so many shops charge to diagnose, especially for warning lights and electrical problems. Ask if this fee is credited toward the repair if you let them do the work.
Shop supplies and fees
Some shops add a small charge for rags, cleaners and disposal of fluids or old parts. Ask how it is calculated so it does not surprise you.
Taxes
Sales tax may apply to parts and, in some states, to labor. The estimate should show it.