The price dealers charge to fix cars has fallen by 4.8% to an average of £90.16 an hour in the last 12 months.

The figures come from Warranty Direct’s latest labour rates survey which suggests prices have come down as dealers fight for customers during the recession. It’s the first decrease in average prices since Warranty Direct started the survey in 2004.

Over the same period, cheaper independent workshops have recorded a marginal increase of 0.8%, taking their average price to £56.10.

The UK’s garage labour rate average, a combination of franchised and independent garages, now stands at £75.85 an hour.

However, rates vary greatly across the country, with the average in Greater London standing at £94.44 per hour – 54% higher than Cornwall, where the figure is £61.15.

To download Warranty Direct’s table of average labour rates by UK region click here.