{"version":"1.0.0","episode":{"title":"The New Economics of Auto Repair: Rising Rates, Fewer Cars, Higher Profits [RR 1080]","url":"http://getcarcurious.com/episodes/the-new-economics-of-auto-repair-rising-rates-fewer-cars-higher-profits-rr-1080","audioUrl":"https://episodes.captivate.fm/episode/7357c2b5-8811-47e9-9ab2-20769d6a7073.mp3","description":"Thanks to our Partners, NAPA Auto Care and NAPA TRACS\n\nWatch Full Video Episode\n\n\n\n\n\n\n\nIn this episode, Carm Capriotto speaks with Tom Ham about the rising labor rates shaping the automotive repair industry. Drawing from the Labor Rate Tracker tool on the Automotive Management Network, Tom explains how shops across the country are steadily increasing rates, with many approaching the $200 per hour threshold. Geographic trends reveal higher rates in regions like the San Francisco Bay Area and Connecticut, and Tom recommends gradual monthly increases of $1 to $2 to maintain profitability without alarming customers.\nThey also discuss shifting business realities, including rising repair order values driven by vehicle complexity, higher parts costs, and increased technician compensation, even as car counts may level off. Many shops are also setting vehicle age limits to improve efficiency and reduce liability.\nLooking ahead, Tom highlights how artificial intelligence will enhance diagnostics and workflow, supporting the rise of a highly skilled mechanical specialist working alongside AI. The episode offers a forward looking view of an industry evolving through smarter pricing, cultural alignment, and advanced technology.\n\n\n\n\n\n\n\n\nhttps://laborratetracker.com/\n\nTimestamps\n(00:00:00) Introduction & Industry Updates\n(00:02:30) Tom Ham discusses the \"Labor Rate Tracker\" and how shops are breaking through psychological pricing barriers as they approach $200 per hour.\n(00:05:00) Geographic Heat Maps: A breakdown of where rates are highest (Bay Area, Connecticut) and lowest (Midwest, South), and the use of heat maps to visualize the data.\n(00:08:15) The Incremental Increase Strategy: Tom advises shop owners on how to raise labor rates by small amounts (1–2) to overcome the fear of price adjustments.\n(00:10:45) Rates by Shop & Vehicle Type: Analysis of which shops command the highest rates (RVs, Diesels) versus the lowest (Collision, Tire Stores), and vehicle makes (Euro vs...."},"annotations":[{"startTime":238.6,"endTime":289.6,"type":"term","title":"labor rate","url":"/glossary/labor-rate","quote":"Listen, let's jump into the labor rate tracker, the good stuff that you're pulling from it. I know you've kind of pulled some surveys together. Please tell us what you're seeing and hearing. It's steadily going up, which we would expect. It's somewhat of an increased pace as time goes on. I think we're maybe set to see a little bit of a surge. Back when a few years, when we broke $100 an hour, it kind of sat right below that. When it got past that, it went up quickly after that. And now we're closing on $200. We're getting a lot of shops reporting in the close to $200 range and a few of them over $200. And I think that's going to be another psychological barrier. Once people are comfortable getting over the two number, then you'll see it go up quite a bit from there. We try to keep the rates fresh. One of the common questions we ask, how do you know they're fresh? Well, it is a volunteer system","canonicalId":"term:labor-rate","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Labor rate refers to the hourly charge that repair shops or mechanics bill customers for their work. It varies by region, shop type, and market conditions, and can significantly impact the total cost of vehicle repairs.","simplifiedExplanation":"Labor rate is how much money a mechanic charges for one hour of work on your car. It can change depending on where you live and the shop you go to."}},{"startTime":612.1,"endTime":617.6,"type":"term","title":"KPIs","url":"/glossary/kpis","quote":"\"They don't have the outliers with the low, they have to hit certain KPIs. I call that sophisticated professionalism.\"","canonicalId":"term:kpis","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"KPIs stands for Key Performance Indicators, which are measurable values used by businesses to evaluate their success at reaching targets. In automotive shops, KPIs might include metrics like customer satisfaction, repair turnaround time, or financial performance.","simplifiedExplanation":"KPIs are important numbers that help a business see how well they are doing. For car repair shops, these numbers could show how fast they fix cars or how happy customers are."}},{"startTime":624.9,"endTime":626.0,"type":"concept","title":"dealerships","url":"/glossary/dealerships","quote":"Dealerships and heavy duty.","canonicalId":"concept:dealerships","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Dealerships are authorized sellers and service providers for specific car brands, often offering new and used vehicles, maintenance, and repairs.","simplifiedExplanation":"A dealership is a place where you can buy cars and get them fixed, usually for a specific brand."}},{"startTime":626.8,"endTime":628.0,"type":"concept","title":"heavy duty","url":"/glossary/heavy-duty","quote":"And heavy duty is coming on absolutely huge.","canonicalId":"concept:heavy-duty","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Heavy duty refers to vehicles and equipment designed for tough, demanding tasks, such as large trucks used for hauling or construction.","simplifiedExplanation":"Heavy duty means big, strong vehicles that can do hard work like carrying heavy stuff or working on building sites."}},{"startTime":629.6,"endTime":630.5,"type":"concept","title":"RV","quote":"RV is coming on pretty big too.","canonicalId":"concept:rv","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"RV stands for recreational vehicle, which is a motorhome or trailer designed for travel and camping with living accommodations.","simplifiedExplanation":"An RV is a big vehicle you can live in when you go on trips or camping."}},{"startTime":634.0,"endTime":635.0,"type":"part","title":"transmission","url":"/glossary/transmission","quote":"the indies and the fleets, transmission shops are kind of in the middle,","canonicalId":"part:transmission","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"The transmission is a vehicle part that transfers power from the engine to the wheels, allowing the car to change speeds.","simplifiedExplanation":"The transmission helps the car go faster or slower by changing gears."}},{"startTime":634.0,"endTime":635.0,"type":"concept","title":"indies","url":"/glossary/indies","quote":"the indies and the fleets, transmission shops are kind of in the middle,","canonicalId":"concept:indies","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Indies are independent automotive repair shops not affiliated with dealerships, often providing more affordable or specialized services.","simplifiedExplanation":"Indies are small car repair shops that aren't connected to big car sellers."}},{"startTime":637.4,"endTime":638.5,"type":"concept","title":"tire stores","url":"/glossary/tire-stores","quote":"and that the low end are tire stores and collision.","canonicalId":"concept:tire-stores","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Tire stores specialize in selling and servicing tires for vehicles, including installation and balancing.","simplifiedExplanation":"Tire stores are places where you can buy new tires and get them put on your car."}},{"startTime":637.4,"endTime":639.0,"type":"concept","title":"collision","url":"/glossary/collision","quote":"and that the low end are tire stores and collision. And of course, collision is, you know, that's affected by the insurance thing,","canonicalId":"concept:collision","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Collision refers to vehicle body repair services after accidents or damage, often involving insurance claims.","simplifiedExplanation":"Collision shops fix cars that got damaged in crashes."}},{"startTime":910.42,"endTime":912.6,"type":"concept","title":"car age","url":"/glossary/car-age","quote":"I think the one we have on there right now is car age. Where do you, and this is something that wasn't used too much in the past, but it's starting to be used more and more, is how old of cars do you work on?","canonicalId":"concept:car-age","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Car age refers to how old a vehicle is, which can affect its condition, maintenance needs, and the likelihood of problems. Some repair shops set limits on the age of cars they work on due to increased deterioration and complexity in older vehicles.","simplifiedExplanation":"Car age means how many years old a car is. Older cars usually need more repairs, so some mechanics only work on cars newer than a certain age."}},{"startTime":970.4,"endTime":971.8,"type":"car","title":"Ford Thunderbird","url":"/cars/ford/thunderbird","image":"https://upload.wikimedia.org/wikipedia/commons/5/5b/1957_Ford_Thunderbird_%2828911503716%29_%28cropped%29.jpg","quote":"They got a 92 Thunderbird. It's kind of like, yeah, we really don't want to get involved in that.","canonicalId":"car:ford:thunderbird","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"The Ford Thunderbird is a personal luxury car produced by Ford over multiple generations. The 1992 model belongs to the tenth generation, known for its rounded styling and V8 engine options.","simplifiedExplanation":"The Ford Thunderbird is a type of car made by Ford. The 1992 version is an older model that some people like to work on or collect.","imageAttribution":"Greg Gjerdingen from Willmar, USA (CC BY 2.0)"}},{"startTime":1024.6,"endTime":1026.9,"type":"term","title":"rust belt","url":"/glossary/rust-belt","quote":"\"The rust belt and, you know, down here in South Florida, I mean, these things don't, you know,\"","canonicalId":"term:rust-belt","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"The Rust Belt refers to a region in the United States, primarily in the Northeast and Midwest, known for its cold winters and heavy use of road salt, which accelerates corrosion and rust on vehicles.","simplifiedExplanation":"The Rust Belt is an area in the US where winters are harsh and salt is used on roads. This salt can make cars rust faster."}},{"startTime":1028.2,"endTime":1030.1,"type":"term","title":"road salt","url":"/glossary/road-salt","quote":"\"but up there in, you know, road salt, that's a big deal.\"","canonicalId":"term:road-salt","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Road salt is used in colder climates to melt ice on roads, but it can cause accelerated rust and corrosion on vehicles, especially on the undercarriage and body panels.","simplifiedExplanation":"Road salt is spread on icy roads to make them safer, but it can make cars rust faster by eating away at the metal parts."}},{"startTime":1087.3,"endTime":1089.0,"type":"term","title":"extended warranty","url":"/glossary/extended-warranty","quote":"with an extended 36 month, 36,000 mile piece of mind warranty and local labor coverage,","canonicalId":"term:extended-warranty","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"An extended warranty is a service contract that extends the coverage period beyond the original manufacturer's warranty, often covering repairs and maintenance for a set time or mileage.","simplifiedExplanation":"An extended warranty is like extra protection for your car that lasts longer than the usual guarantee, helping pay for repairs if something goes wrong."}},{"startTime":1096.5,"endTime":1098.0,"type":"company","title":"Napa Autotech","url":"/glossary/napa-autotech","quote":"You'll also gain access to award-winning Napa Autotech training for technicians and service advisors,","canonicalId":"company:napa-autotech","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Napa Autotech is a training program by Napa Auto Parts that provides education and certification for automotive technicians and service advisors to improve skills and service quality.","simplifiedExplanation":"Napa Autotech is a special training program that helps car mechanics and service workers learn new skills to fix cars better and faster."}},{"startTime":1256.3,"endTime":1260.3,"type":"part","title":"water pump","url":"/glossary/water-pump","quote":"But I'm just talking strictly from doing a water pump in 2025 to doing a water pump in 2026.","canonicalId":"part:water-pump","priority":0.5,"confidence":1.0,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"A water pump is a crucial component of a car's cooling system that circulates coolant through the engine and radiator to prevent overheating.","simplifiedExplanation":"The water pump helps keep the engine cool by moving liquid around inside it so it doesn't get too hot and break."}},{"startTime":1278.8,"endTime":1282.8,"type":"term","title":"10,000 mile oil change","url":"/glossary/10-000-mile-oil-change","quote":"\"And now this, we seem to be living in the world of the 10,000 mile oil change. That's the world we're in. That's, they're going to come in once a year And they're just not going to come in as often as they used to.\"","canonicalId":"term:10-000-mile-oil-change","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"The 10,000 mile oil change refers to the extended interval between oil changes that modern vehicles can go due to improved engine technology and synthetic oils. This means owners don't need to change their engine oil as frequently as before, often only once a year or every 10,000 miles.","simplifiedExplanation":"A 10,000 mile oil change means you only need to change your car's oil after driving about 10,000 miles, which is much less often than older cars. This helps save time and money on maintenance."}},{"startTime":1400.2,"endTime":1410.2,"type":"term","title":"ADES","url":"/glossary/ades","quote":"I love this example, but where's ADES going? I mean, is it going up, staying any idea where that equipment cost is from just even two or three years ago? That's still kind of finding its legs, ADES.","canonicalId":"term:ades","priority":0.9,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"ADES stands for Advanced Driver Assistance Systems, which are technologies designed to help drivers operate vehicles more safely and efficiently by automating or enhancing certain driving tasks.","simplifiedExplanation":"ADES means special car features that help you drive safer and easier by doing some driving tasks for you or helping you avoid accidents."}},{"startTime":1503.7,"endTime":1506.3,"type":"term","title":"alignment","url":"/glossary/alignment","quote":"\"It's just no longer the $99 alignment. It's now the $400 alignment.\"","canonicalId":"term:alignment","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Alignment is the adjustment of a vehicle's suspension angles to ensure the tires meet the road correctly. Proper alignment improves tire life, handling, and safety. Modern vehicles may require more complex and costly alignments due to advanced systems.","simplifiedExplanation":"Alignment means adjusting the car's wheels so they point the right way and wear evenly. This helps the car drive straight and keeps the tires from wearing out too fast."}},{"startTime":1638.5,"endTime":1641.2,"type":"term","title":"check engine light","url":"/glossary/check-engine-light","quote":"I think around 1980, was check engine lights. So we got 45 years of check engine lights or whatever.","canonicalId":"term:check-engine-light","priority":0.5,"confidence":1.0,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"The check engine light is a dashboard indicator that alerts the driver to potential issues with the vehicle's engine or emissions system. It has been in use since around 1980 and signals when the onboard diagnostics system detects a problem.","simplifiedExplanation":"The check engine light is a warning light on your car's dashboard that tells you something might be wrong with the engine or emissions. It helps you know when to get your car checked by a mechanic."}},{"startTime":1661.0,"endTime":1662.5,"type":"term","title":"remote start","url":"/glossary/remote-start","quote":"The remote start don't work. I mean, they got no cruise control.","canonicalId":"term:remote-start","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Remote start is a feature that allows a vehicle to be started from a distance using a key fob or smartphone app, enabling the engine to warm up or cool down before the driver enters.","simplifiedExplanation":"Remote start lets you turn on your car from far away, so it can get warm or cool before you get inside."}},{"startTime":1662.9,"endTime":1664.0,"type":"term","title":"cruise control","url":"/glossary/cruise-control","quote":"I mean, they got no cruise control. Everything quits working and the people go,","canonicalId":"term:cruise-control","priority":0.5,"confidence":0.95,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Cruise control is a system that automatically controls the speed of a vehicle, allowing the driver to maintain a steady speed without keeping their foot on the accelerator.","simplifiedExplanation":"Cruise control helps keep your car going at the same speed without you having to press the gas pedal."}},{"startTime":1786.4,"endTime":1789.2,"type":"term","title":"ASE","url":"/glossary/ase","quote":"They can pass a mechanic test, such as ASE or Michigan.","canonicalId":"term:ase","priority":0.5,"confidence":1.0,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"ASE stands for the National Institute for Automotive Service Excellence, which certifies automotive technicians to ensure they have the skills and knowledge to repair and maintain vehicles properly.","simplifiedExplanation":"ASE is a certification that mechanics get to show they know how to fix cars well and safely."}},{"startTime":2382.4,"endTime":2385.5,"type":"brand","title":"Hyundai","url":"/glossary/hyundai","quote":"...But it was in a Hyundai factory and the Hyundai factory workers were watching the robot learn to do stuff.","canonicalId":"brand:hyundai","priority":0.5,"confidence":1.0,"source":"hybrid-fuzzy+gpt-4.1-mini","data":{"explanation":"Hyundai is a South Korean automotive manufacturer known for producing a wide range of vehicles from economy cars to SUVs. They have grown significantly in global markets due to their focus on value, technology, and design.","simplifiedExplanation":"Hyundai is a big car company from South Korea that makes many types of cars, including small cars and big SUVs. They are popular because their cars are affordable and have good features."}}],"speakers":[{"id":"s1","name":"Carm Capriotto","role":"host"},{"id":"s2","name":"AAP","role":"host"}],"transcripts":[{"url":"http://getcarcurious.com/episodes/the-new-economics-of-auto-repair-rising-rates-fewer-cars-higher-profits-rr-1080/transcript.vtt","type":"text/vtt"}]}