Ford Service $118 per hour + GST - fair ?

[Rodge]

Do you think this is a fair hourly rate for Ford Dealers to charge for service ?

Subject came up yesterday with a client who's motor vehicle expense total had run amuck for the year and he explained that he'd had a lot of work done on his Falcon Ute after it was stolen, that wasn't covered by insurance and went on to ask me if I thought the above price was fair for a franchised Ford dealer ?

Personally I'm "over" the need to get cars serviced at franchised dealerships but happen to know the local Honda dealer is $95 plus GST and Mercedes-benz here charge $120 per hour plus GST.

Not looking for this thread to deteriorate into a general slagging of Ford dealerships service, just want people's opinion on thread topic so I've made it into a poll.

From where I sit I think they should be somewhere around the $90-100 per hour mark plus GST and I'm sure that would encourage more Ford owners to get their Ford's serviced at a Ford dealership. That's where I see fair value for money, so I've voted for the above rate being excessive.

[gcg2503]

Are you talking NZD or AUD?

Must clarify!

[302 XC]

Its $90 an hour for work from the local mower shop .....

How is it calculated as fair, has anyone done the actuall per hour costings for a mechanic shop ???

[Rodge]

It doesn't matter and shouldn't matter. Most operational costs of a service centre, excluding parts and oil are priced in the country in which the service centre operates. Of course Kiwi customers pay more for parts and oil due to the difference in the exchange rate, that's a given.
Therefore Aus members can assume I'm talking $A for the labour rate. I don't think service centre labour prices are much different in Australia from what I've seen here but I'd be more than happy to hear info on them. FWIW the dealership in question is the biggest in Auckland and is owned by the Automotive Holdings Group.

[stalker]

** my mechanic charges 40 an hour + parts.. but dont really use him much just when i get to lazy to do **** my self.

[yift]

i think what dealerships charge is fair. you have to take into consideration wages, work cover, overheads (electricity, gas, rent etc), workshop maintenance, franchise fees, the list goes on.

unless you have worked in a workshop you will not know how much money is required to operate one.

it doesnt matter if the dealership is owned by the biggest automotive consortium in New Zealand, is it against the law for them to make a profit?

[Smoke Pursuit]

I don't see the point in this thread.

With Fords fixed price servicing now it does not matter what hourly rate the dealer charges. You don't have to pay more then the fixed price.

[BHDOGS]

Yes it's excessive

[Rodge]

Originally Posted by yift

It doesnt matter if the dealership is owned by the biggest automotive consortium in New Zealand, is it against the law for them to make a profit?

Of course not, on the other hand given that they have the vast majority of the Ford servicing work in Auckland (population circa 1.5 million), is it against the law to price fix...
F.Y.I. This client bleated like a sheep at their latest bill for nearly $1,500 of work that wasn't covered by insurance even though it was work directly related to the theft and consequential damage to his vehicle, (insurance company didn't want to know and how long does one keep fighting them ?), and was eventually offerred their trade rate of $80 per hour.

Dash - Of course not all work people have done is regular servicing covered by the agreed price system you guys enjoy, (not currently in existence in N.Z.).

[creative]

Im in the excessive camp im afraid.

I will never use a dealer. Its the same in the uk. My best mate is head mechanic at a toyota dealership so i have seen what goes on.

In my opinion, find a good indy and stick with him.

[yift]

how can they be price fixing when they are setting their labour rate to a price which they see is fair for the consumer to be paying and also fair for them to run a business?

i dont know about New Zealand but labour rates here in Australia are set by the individual owner of a business and not by a governing body.

[Rodge]

Originally Posted by yift

how can they be price fixing when they are setting their labour rate to a price which they see is fair for the consumer to be paying and also fair for them to run a business?

i dont know about New Zealand but labour rates here in Australia are set by the individual owner of a business and not by a governing body.

The question in Auckland is do John Andrew Ford exert market dominance in the service sector by virtue of their geographically diversifed service centre bases and the limited other competition, and if so do they exert some level of price control ? Not looking to make an issue of this with the Commerce commission but AM definitly somewhat uncomfortable with their pricing.
I know for a fact that when the Automotive Holdings Group took over ownership of John Andrew Ford some time back, there was a big jump in the hourly service centre rate.

FWIW the only other authorised Ford service centre in Auckland, South Auckland motors only really serves the south Auckland part of the city which is quite far from where I live. They are locally owned and I phoned this morning to query their hourly rate and its $103 per hour plus GST. I had no knowledge of this when I started this thread. The gentleman I spoke to clearly implied they could do even better that that with a bit of gentle arm twisting, or words to that effect.

If I ran this poll with a rate of $103 per hour, I'd bet good money there would be more inclination towards that being a fair rate.

[ute83]

I feel sorry for the people that have to cough up those rates, especially when the bloke doing the job struggles to get twenty bucks an hour. Many a time iv'e seen the look on peoples faces when being told the cost of their service, while i'm picking up parts. Doesn't take much to come to over a grand these days.

[Joe5619]

ALL dealers rip you off.. It is not a Ford thing, but a dealer thing!!

[HUNTER8]

Originally Posted by Rodge

I know for a fact that when the Automotive Holdings Group took over ownership of John Andrew Ford some time back, there was a big jump in the hourly service centre rate.

What happened to the previous owner?

When it gets down to it what is really fair?
Vet $57 to walk in the door?
Removalist $120 an hour which starts from when they leave the base?
Plumber $45 per 15 minutes?
Electrician $400 for 3 hours work?

[1970galaxie]

I only used the dealer when my ute was under the 3 year warranty.
Never went back after that.

[ute83]

Originally Posted by HUNTER8

What happened to the previous owner?

When it gets down to it what is really fair?
Vet $57 to walk in the door?
Removalist $120 an hour which starts from when they leave the base?
Plumber $45 per 15 minutes?
Electrician $400 for 3 hours work?

That's right. It's all insane. It is getting beyond peoples ability to pay.

[flappist]

Originally Posted by ute83

That's right. It's all insane. It is getting beyond peoples ability to pay.

All of these only get paid when they are working for you. They do not get paid when they are being trained or doing research, on holidays, lunch, sickies, late, RDOs, smoke break or wasting time on AFF etc.

How would you like to be paid only when you are actually doing productive work........

[ute83]

Originally Posted by flappist

All of these only get paid when they are working for you. They do not get paid when they are being trained or doing research, on holidays, lunch, sickies, late, RDOs, smoke break or wasting time on AFF etc.

How would you like to be paid only when you are actually doing productive work........

Yep that's right, i would be their only customer.

[Rodge]

Trademan's rates and professionals rates have never been comparable and probably never will be and your tone and content is therefore inappropraite.

Case in point. Using the example Hunter8 quoted above of $57 to see your vet which is usually a 15 minute appointment, inplying a professionals rate of $207 per hour plus GST which FYI is not dissimilar to my own. That Vet has had six years in University education before they earn a cent and spent how many tens of thousands of dollars on their university education. Even when they're a qualified vet they probably earned not much more than tradsmans wages for the first few years of their career. The vet I take my dogs to see has about 30 years professional experience again not dissimilar to myself and does a thoroughly professional job of caring for my most loved dogs. He also charges $57 per visit. I think that IS fair value for money.

Lets keep it on topic now can we if that's not too much trouble.

[Cam]

I am an unqualified IT tech (just a sysadmin), we charge $140 / h for my time to clients.. So a qualified Ford mechanic seems ok @ $118/h..

If only they did a good job..

[rancidpunx]

I am in the Excessive camp. Im there because I do not see it as good value for money. I would pay it "IF" the work lived up to the price tag.

My ute does not go near Ford but the Ranger gets serviced there as I have not found a decent mechanic who I "Trust" to play with the oily bits. Not happy about it but at least the book gets a blue oval stamp.
We recently had the 120k service (outside the fixed price crap) and it cost over $1200. On checking their work I noted the wheels had not been rotated, diff oil not checked, spilt oil all over the bash plates underneath, and they missed a bent driveshaft and a leaky front diff seal. Thats 2 weeks wages for some people and I would be willing to bet that the work they did do took less than an hour.

[b0son]

Originally Posted by Rodge

Do you think this is a fair hourly rate for Ford Dealers to charge for service ?

Pricey, even for a fully qualified mechanic... total rip-off for an apprentice.

[Rodge]

Is $118 plus GST in line with what's being charged in Australia ? (Havn't seen any feedback on that yet).

[Fiesta_Man69]

WS Fiesta 60K service. A choice:

$405 "fixed" price at Sinclair Ford

or

$154 total for parts and labor; at my local mechanic, all parts supplied by me, charged for 45 mins labor (bout $70)...(And I've been going to him for 10 yrs).

Perhaps this is why dealerships like Dale Ford have gone bust, and why Ford Aus posted a record loss in 2011. If I worked at Ford I'd be very concerned.

[b055m4n]

I agree the dealers are out of control....

[GT0132]

Originally Posted by Rodge

Trademan's rates and professionals rates have never been comparable .

Oh yes they have....Last week in fact a recent survey showed that 6 of the the top 10 highest paid occupations in this country are now blue collar including the first 3 place geters. Seems I should have done a trade rather than uni.

Back on topic, They can charge what they like. NZ, like Australia, is a democracy and you can exercise your democratic right to go elsewhere. The law of supply and demand will dictate whether the market will bear that price and it seems that it has, otherwise this mob would be out of business.

Tax lawyers at my firm charge $900 an hour. Is that reasonable?

Our local Ford dealer charges $100 an hour, which is around NZ$130 - and I think where I take my car is $120

[DJM83]

One reason why my new ford will NEVER see a dealer.

[ratter]

Originally Posted by Rodge

Trademan's rates and professionals rates have never been comparable and probably never will be and your tone and content is therefore inappropraite.
.

WHY and WHY?

I do not see a problem with his tone at all, infact from what I can see, he is asking a fair question. Why can't trade and professionals rate be comparable?

[Rodp]

I'm in IT. The company I work for, if your equipment isn't under warranty or contract charge a flat $2500 fee for me to turn up just to look at the equipment. After 2 hours, it's an additional $250/hour.

Price doesn't change regardless if I solve the problem in 2 minutes or I advise the customer that their problem is out of our scope (deemed not a hardware problem, therefore not our concern).

Seems to me the price is fair. Also seems to me that if you don't consider the price to be fair, seek an alternative service centre.