What should they charge? Seriously.....
The cost of doing business is what keeps accountants in business - every day.
One hidden cost most don't think about is some dealerships are "owned" by shareholders. Shareholders demand profits or they pull their investment.
Some dealership models have "different" organizations within the dealership itself - a local example is a Chrysler dealership with a "body shop" owned and operated by a separate legal entity, but on the same premises and not overtly marked as such.
Since this is separate entity, it must be a profit center or it will fail to sustain itself.
It seems that the days are gone where an organization would have separate profit centers making up for the losses of other departments. This all started in the late 1980's (think back to movies like "Pretty Woman" and "Tommy Boy" where an outsider would come in and "break up" a company, selling off the profitable parts and scraping the rest).
So, to answer the question, the local part is not that hard to figure out. It is the variable cost of ownership associated with the model they operate under that becomes the issue. And that is why a small operation charges less as there are "fewer mouths to feed", so to speak.
On a side note; Think about the cost of the "rent your lift and work on your own car" places. How much do the ones still in business charge for any empty lift, insurance, lights, taxes, etc.
Here's a few examples where it didn't work out:
We rent garage bays with car lifts! We also include tools, equipment, expert advice and more! Great for DIY auto repair of all kinds. Rent a bay today!
stewsgarage.com
Back when opened charged 47.00 per hour to use lift back in 2020:
We Rent Bays With Lifts! Every bay includes a professional grade tool set, a lift, and much more! Read below to learn more. Lift Rental $ 47 /Hour Every Bay Has a Lift 400+ Piece Tool Set Expe…
web.archive.org
Do you need a place to work on cars? Maybe you're a moonlighting mechanic or a D.I.Y. project warrior. Garage Yourself is the only place in Miami where you can rent a lift and turn your own wrenches.
www.garageyourself.com
These types of places failed because a lot of DIYers are DIY because they can't/won't pay those type of rates. The "sell" was to emotion, but the failure was related to true cost of the shop equipment (there is a thread somewhere on this site about it).
Rent tools and lifts by the hour, day or week. We've pretty much got it all, from welding machines and fabrication tools to lifts and tire machines.
web.archive.org
Anyway, if you need 47.00 per hour for "lift space", and 35.00 per hour for direct labor, that is at 82.00 just to have a lift and a tech. Now add in all the other non-profit producing space you are paying for (think about parking spaces for the parts counter, awaiting pickup, drive-in lanes - cost of land, taxes, etc.) and it makes more sense for the prices charged. Oh, and don't forget about the service manager, service adviser, etc. They all want to be paid too.
And you are the one paying for it.