Garages are charging an average of £8.16 an hour less than last year to carry out service and repair work, new research from Warranty Direct has found.
The average hourly labour rate has fallen from £82.86 in 2012 to £74.70, according to a study of more than 12,000 cases.
The price drop has been attributed to increased competition from fast fit garages, aggressive manufacturer loyalty programmes and an increase in the number of motorists willing to shop around to get the best deal.
But despite the recent price drop, labour rates for garages have increased by 33 per cent over the last decade from an average of £56.72 an hour in 2003 to the current £74.70. In 2003, the most motorists would have been charged for an hour's work was £152.75; however, the most expensive hourly labour rate in 2013 was £200.40. Although a huge increase over the 2003 figure, the 2013 figure was down slightly on last year when the highest ever rate was recorded -- a staggering £202.21.
Duncan McClure Fisher, Managing Director of Warranty Direct, said of the findings: "From this year's results, it appears, for the first time, that consumers are starting to win the price war as labour rates finally start to fall across the UK. We've seen almost a decade of spiralling costs to keep a car on the road and it’s good to see dealers competing more on pricing.
"Service clubs, servicing plans, fixed priced servicing and scheduled servicing bundles are being increasingly used by manufacturers and dealers to attract and retain customers. At the same time, consumers are getting smarter and learning how to shop around for better deals."
London is the most expensive place for car servicing, with garages charging an average of £89.33 an hour. Conversely, Clwyd in Wales was found to be the area with the lowest servicing costs, with garages charging just £66.78 an hour.
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