re: Auto mechanics - how much mark up on parts do you feel is fair market value nowadays?

I've worked for a GM dealer a little over 40yrs.

Just a few thoughts-

Each Dept (Sales, Service, Parts & Body Shop) are businesses within a business. Each dept has separate expenses and such.

Customers who provide their own parts are charged an insanely high labor rate. The most common item customers provide are keyless remote transmitters bought online and want programmed. Roughly 50% fail to program due to being faulty or incorrect and we still charge you the labor.

Engine and Transmissions have an avg mark-up of 15% on customer pay repairs.
Other parts have an avg markup of 124% from cost. If you think that's bad, small engine repair parts (lawnmowers, Ag Equipment) have a 235% avg parts markup.

Most shops set labor charges based on many factors, one being margins on parts. If they hang parts bought by customers, then their break even point changes and their labor charge would need to go up. Also, shops don’t guarantee parts that they don’t source.

150% is high - is that their margin or markup? If 150% is their gross profit margin on parts, then I would call that gouging. If markup, then that’s 60% margin. I’ve seen worse, but a discussion with the owner may be in order before going somewhere else, especially if they do good work and warranty their parts and labor.

100% is pretty standard.
15-30% days are dead.
That's 100% over wholesale.

For instance I bought a compressor for my van retail for $175. For MOTORCRAFT. dealer wanted $405.
That's too high.
Dealer also said it was back ordered. I got it in two days.


If parts mark up bothers you. Bring in your own parts.

Right now anyone who fixes anything is really backed up.
They don't care if you go elsewhere and sadly that shows in prices and service times.

I think it’s closer to 200%

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