I called a dealer inquiring for pricing to change plugs on a 2007 RX350. They told me the plugs were $27 each and the labor was 3.5 hours. Sounded OK, but they said the labor rate is $189 per hour. Damn, for a 40 hour work week, that totals $393,120 per year. I wonder how much of the 189 actually goes to the mechanic. I know it covers facility and equipment costs, but that still seems high.

 

A good tech can also do that job in a lot less than 3.5 hrs. too. You still pay for 3.5 hrs. though.

 

Not much of that goes to the technician, but as costs increase for shop tools / computers, technician training, etc, unfortunately labor price goes up as well.

 

It appears that California has very similar Labor Rates to what we pay out here on East Coast. Northern Virginia is a highly expensive place to live being so close to DC, and has the same Rates as you do in CA. Once you find a really good Service Writer at your dealership - stick with him or her! Having a good relationship with them is vital, and something which can hurt you if its not! I've seen some flagging cars that have been modified, and they enter such Mods in the "System" so that if anything occurred, they can claim it was due to such and such Mod - thus voiding your warranty for whatever it is you change out. Cant believe they even try to gig you on things such as "Aftermarket Air Filters" which is ridiculous! Would LOVE to know who at Lexus determines Labor Rates across the Country, and how high they should be!!

 

While I tend to agree on the aftermarket thing I have personally seen numerous diesel engines and tons of turbos dusted from using KN and other high flow aftermarket air filters. I have also seen numerous posts of people with various turbo engine vehicles throw tunes/power adders in that jump HP 2-3x OEM tune and then full expect the dealership to rebuild the tranny and or replace turbo or do a full head replacement for blow head gaskets pucking coolant out the degas bottle.. Then if they get called on it they ***** and moan about how the dealership are crooks etc. Its these types of things that give the dealers the excuses and the reasoning for putting anything under the microscope. It a pretty simple rule if you do not want trouble with the warranty then do not put performance parts on the powertrain.

I am outside the beltway thank God these days Out in Winchester area Fredrick County but lived and owned a home in Falls Church City Va for a long time so 'i full well know the cost of living in the Mclean, Great Falls Tyson Arlington N Va areas. It has got insane over the last 20yr. Its hard to believe they are charging basically 190-200 for labor in that area. I think Silver Spring MD was $165 as that's where I just bought my es350. But I could be wrong. it may have been more.

While there is no doubt the costs of the equipment and real estate has gone up lets not forget that almost all dealer profits come from their service center. They are not hurting for either volume or profit per job fro what I can see of the numbers and the full bays with long line of cars waiting to be pulled in. Fuel which should also be directly effected by land prices is not that significantly different than getting outside the beltway. Only taxes seem to really make much of an effect unless its downtown Rosslyn or Crystal City. When 'i was spending time at the pentagon and navy anex 'i was always careful not to have to fill up until I got out of that heavy density area as it was 0.15-0.20 more per gal. I am so happy not to be paying the properly taxes I was in Falls Church. $7K per yr and that was 15 yrs ago. My old home I think is now 10K/yr taxes. Consider the county with highest median income per household in the entire USA is Loudon and 9 of the wealthiest counties in the USA are in the DC Metro area. People always think NYC or LA but there is also low income areas in those places. Not so anymore in the DC metro area on the VA side at least all the way out till you get past Loudon to the NW and Stafford etc to the S. Well outside the beltway. So happy to be out of that rat race and the traffic. Now traffic is 4 cars at the same light LOL