How to Manage Money as a Flat Rate Mechanic

[@acefighterpilot]

My first lead tech when I got started had a great system for leveling out slow times in the hangar. "Buy all of the parts for your project car when we're busy, then do the work when it gets slow."

[@HumbleMechanic]

Hahaha I like that

[@ablewingss]

I’m not even a mechanic, it’s just a hobby, but this is a sound life lesson for all!

[@leodagreat1]

As a new tech I really appreciate your advice ✅

[@aitorbleda8267]

This is a brilliant video, not just for automotive technicians, but in general for people starting their careers. I also saved when starting my career and it was an excellent move.

[@evazquez0211]

26 years in the Business and let me tell you I wish someone Would have taught me that!! Thank You from a Volkswagen tech to another!!

[@evazquez0211]

FYI when is KZbin going to add the super like!!!!!!!

[@HumbleMechanic]

Haha they need to get the ball going!

[@kevinsellsit5584]

@@HumbleMechanic This is one video that needs a re-like button for sure!

[@chrisroop]

I saw my parents do something similar. They lived off of years of overtime. 2008 came and, unfortunately, it hit them very hard. Very good advice.

[@rossbowman202]

Charles best advice ever. This need taught in every field and everyday life.

[@Marri-Tech]

I'm in an engineering apprenticeship and we get shift allowance, it makes up to a 30/35% bonus to your basic wage and most people become used to it. Untill work declines and shifts get cut and you end up in a similar situation

[@BottleJackBuddy]

So well said....on all points. Thanks for taking the time to make the video. Our automotive culture (and culture in general) needs this.

[@ALovelyBunchOfDragonballz]

Another thing, personal recommendation for new techs: Gearwrench ratches and sockets. I love em and you can buy them so much cheaper than [tool truck brand] ratchets. I like my 120XP 3/8, and I'm gonna pick up a 90XP soon.

[@DrMeowsif]

Thank you I love the advice! One thing as a content suggestion if it isnt already in the makings is taking care of your body in the shop. I started at an independent shop about two months ago and granted not being in the best shape. I go home some days feeling absolutely demolished. Any tips for angles and posture while working would be super helpful!

[@mackenzieelson3742]

Take your time and try to lift tires and heavy objects safely. use knee pads. Wear gloves and respirators. The strength and conditioning will come with time. You will loose weight and get in shape running your ass off, just make sure you take care of your body.

[@jameshaulenbeek5931]

This is fantastic advice, for everyone!

[@HumbleMechanic]

thank you!

[@jco3872]

Yes, For Everyone. This great advice for me as an First Year Electricial Apprentice

[@dentasla]

Yes It Is!! I just got a Mk4 from A Family Friend, Thank God He Wasn't Deported and My State "Roll Tide" Because He Is A Family Man Awesome Man of GOD and LOVE....Im Soooo PROUD OF PEOPLE STANDING UP FOR THEMSELVES AND ALL OF US!! NE WAYS!! IM TEACHING MY KIDS!! I was in OIF1. Then Local College...went for Long Certificate in Auto Tech got to My last course in suspension then opioid epidemic..No Real Pandemic, took a long time Girlfriend and I got caught up too. The Military broke Me before that. So I didn't get to finish.....Now I'm Clean and I'm about to earn some good Work Dues.

[@MihkailGorbachev]

As always Charles, really great advice. As someone just getting into the industry, this is something I REALLY needed to hear. It can be so easy to succumb to lifestyle creep and find yourself in a shitty spot.

[@cjgetreal]

Wow! I'm not a mechanic but have always enjoyed all of your videos I've watched. This is a fantastic presentation for everyone starting whatever career one takes on. Great job!

[@HumbleMechanic]

Thank you

[@therealderjett]

This is something that everyone with that really good first job should know. This is a great video. I had this conversation with my son who is 20. He took it to heart and has done a great job managing his money. Better than I did at his age. He has had his checking, savings and first credit card for 2 years now. Paid cash for his first car and still had money in his savings account. A course for money management needs to be mandatory for all students. This really does set the tone for your entire life. At almost 50 looking back I wish I had made some better choices.

[@chaseweeks2708]

Definitely agree with the lack of education about money. I've never been truly stupid about money, but I didn't really get smart about my money until I was 25 and had a fantastic Master Sergeant that sat me down on quite a few occasions to go through various 'lessons' about Money. I'm so much better off now. Even with the recessions and Covid, I've never had to worry about anything. I really miss that guy.

[@darrelsmith3907]

This is a great video. Applies to soooo much more than just mechanics. I work in the Live Event industry and no one could've predicted that most of our industry would lose literally all revenue for basically all of 2020. The company I work for has done a great job of applying a lot of the principles you're talking about so I'm still employed just at a lower salary for the time being. Thankfully my parents taught me about budgeting and stuff as a kid so the reduction hasn't taken a huge hit on me.. Budgeting for the win. Thanks for your videos Charles, always fun to watch!

[@matte8441]

Fantastic info. Very handy at unprecedented times like this. When the dealership I worked at was doing lay offs during peak of Covid combined with the dead winter months , us flat rate guys that remained were making an average 4 hours a day doing tire repairs and battery replacements.

[@Mellchior]

Some great life advice here. When I was younger, I went through some cool cars pretty quickly and I really couldn’t afford them. Not a good use of money and still regret those choices all these years later. Now I drive a 14 year old car.

[@HumbleMechanic]

I learned that lesson the hard way.

[@bossbaby1037]

Thanks so much, grew up from a Peugeot dealership as apprentice & humble beginning, made me understand plus you sharing, one thing I'm greatful for is some individual in the game before telling us, to gain the experience & money will come, I saw many individual before & after me dropped out because of lifestyle & money management only me & 2 other individual successfully graduated after 4years, then I did a course with City&Guild's, I'm proud to be the first one with the level 3 in light vehicle repair & maintenance in a country over 200million people I'm sincerely 🌹🌹 giving rose to all y'all who keeping, inform us on the path to take, with experience & guidance counseling, means a lot. 🌹🌹🌹🌹

[@damianmaranello4177]

Wow, vote for best vid on tube this year. Glad there is someone out there with the right mindset of doing busnis and guidance!!!

[@ibnalfreak]

Thanks so much for making this video. This really is applicable to other people starting their careers as well. I got a new car a week after starting my first real job, not as expensive as many other people buy in my situation, but I'm still kicking myself over the payment. I really could have made some headway on my other debts like student loans, or credit cards from the wedding. Thankfully I'm making good progress now.

[@controlfreakscrtrs]

Been a technician for the last year or so, this advice will hopefully help me during my shift from used cars to the main shop, I've gotten a little too comfortable with the 50-60 hour a week lifestyle, gonna have to grit my teeth and face the 40 hour lifestyle eventually.

[@mrderp996]

Im in the same spot bro. Good luck to ya

[@ondrejmusil4475]

Honestly, thank you Charles for this video. I genuinely love this series, so much learned. Greetings from Czech Republic

[@cameronharris7478]

Hey Charles I love your videos just started me mechanic apprenticeship with volkswagen this week and just want to say thanks for your tips. from ireland

[@HumbleMechanic]

THATS AWESOME!!!!!

[@therealcptslow]

Great advice as always, I'm one of the lucky people that is just naturally good at managing money no matter what and this is my mindset already. Another point I try to tell people, not necessarily about the money itself but hours documentation, is keep track of any and all work you do and document it. Make a notepad or spreadsheet on your phone/pc and list all the work you perform and the book time for it. Just simple stuff like a repair order number, car info, notes about the work performed and how much it's supposed to pay you. Doing this I've caught more than one instance where something wasn't correct with my hours on the admin's side. Gotta make sure you're actually getting paid for everything you do

[@nickpappas4133]

Very good advice for all jobs. I’m now retired from 47 years as a VW/Audi tech as much as I would have liked a SnapOn toolbox I could not bring myself to buy one,instead I had Beach and Husky toolboxes filled with SnapOn and other quality tools. Worked with alot of young apprentices with big SnapOn boxes with not much in tools. It’s the tools that make you the money not the toolbox.

[@lewydmusic]

The issue In my area is, no matter what dealership you go to, hourly pay is pretty much all gone. It's all flat rate, that's why I've gone to a Mavis. Hourly. I feel the stabity of hourly outweighs the mad money you can make at flat rate. Gotta put pay into account to. That 15 /h is not far off from what we are making right now in 2021-22. With almost 5 year experience and all 8 ASEs I can't find more then 16-17 per flat rate hour.

[@truckingham3233]

I might also add that it helps if you have supportive service advisors. I am about 2 months into being a flat rate tech at a dealer and just spent a week on a warranty cylinder head that ended up paying me 14.9 hours. But because of my service advisors they helped me catch up by making sure I got pretty much nothing but gravy work for the next week

[@pospc2]

I can say that as of now where I work we are doing 300 cars a week on average. Which as you know that can greatly vary on hours. I have to say that since being a tech I have learned why my father used to come home worn out and had days he hasn't wanted to do anything after work. I would advise anyone that is looking to switch in the future to automotive. If you have a stable job try and stick it out( unless an opportunity comes by that is too good to pass up) and pay down or off your debt if you are near. Example. I didn't make the leap until my car was paid off (I was only a few months away). What I am advising is to have as little monthly payments as possible when you make the switch so you can get a feel for the pay. You WILL be slower at first even if you are experienced DIY or shade tree it will take you a while to get into the swing. Not to mention if you have issues with parts orders (happens a few times a week for me) that will slow you down. Good luck everyone. Making the jump is exciting and it feels good. Especially if it's something you have been wanting to do for a while.

[@grimysteph4120]

this is a good video. ive been a line tech at audi for about a year. i got promoted from used car (still flat rate) to line tech. i make good money for my age and i blow through it. i live with my parents so i’m okay but i need to move out and grow up. slow season sucks and i’ve seen other techs stress out because they can’t maintain the 120hr lifestyle during slow seasons. i don’t want to be like that. this is very helpful. once again thank you

[@d.d4184]

Very helpful video. Working for my self as a tec for the last 6 years. Just out of the black for the first time in 6 years. This is timely advice.

[@jeffboyer39]

The same goes for most jobs. You have to budget as 40 hrs & don't always depend on overtime. Especially on a set up on hrs like mine 36 hrs one week and 48 hrs the next. Thanks for the video and time you put into all of them (: be safe.

[@douglasstewart4578]

Same thing in the aviation industry... outstanding advice!

[@joefleming8568]

Excellent video Charles. The whole series is so good and it is nice of you to do. You are a real quality guy!

[@MathewMaher]

❤️❤️❤️❤️❤️❤️ So much awesome advice. Things I really should’ve taken more seriously at the start of my career but I am taking more seriously now. The temptation is always there but new techs, this is coming from a seasoned technician (Charles), and a tech still figuring it out: If you can’t afford it with cash in hand, don’t go into debt. I have spent too much money trying to impress other people that don’t care.

[@mattpolhamus9194]

Great stuff Charles. Really feel you at 8:00 about how none of this stuff is taught- I would have done things MUCH differently if I hadn't assumed that my income would always increase over time rather than fluctuate due to things out of my control. Got into a ton of debt and then was absolutely crushed in 08 when the economy went south. PSA Don't use credit cards, kids!

[@brenthann2623]

living below your means is great advice for everyone no matter the career

[@trentdauzat3115]

Charles it good to see you bring this up and give advice...i can't begin to tell you how many techs go through my dealership and complain to me ( I guess my beard makes me wise looking not as awesome as yours lol ) but I try to bring up this same point across with them. Some take it some brush me off. Definitely going to start sending all of them a link to this video. Keep up the awesome videos!

[@albertomichaus8401]

I'm not a vw guy but all of the videos from charles are great and this one is a briliant one, it really open your eyes and makes you think twice

[@HumbleMechanic]

Thank you

[@kevinsellsit5584]

Excellent advice! I'd like to add a couple things I've learned along the way. In my day it was a reasonable assumption that after the steep learning curve of your first year or two you will earn more money next year than you did this year. In my case that is easy to prove with my social security statement. But, and there is always a but, you may never get a raise. I didn't. If at all possible try to get paid as a % of your billed labor. One shop I worked at I got $18.00 per hour flat rate. It was a small independent shop with two master mechanics and an endless onslaught of wanna-bees who were there for a few months before moving on. The problem was that the "always new guy" in the bay next to mine was, always new, and usually didn't know sh_ _. I was spending way too much time teaching them where things were or how to use the tire machine, or whatever. This cost me money. When I discussed this with the boss he just said "I've been paying $18.00 an hour flat rate for twenty years and I'm not going to change now." So can I bill hours to the new guy for training him? Okay, I said. When the next new guys tool box shows up on a flat bed, that same flat bed can take mine away. And two weeks later, it did, much to his surprise. While I was there, the labor rate they charged went from $43.50 to $76.50 (yeah, I'm old) so the owner got quite a good cost of living raise, while I was training all the flunkies he kept hiring. Every other job before and since then I got paid as a % of my billed labor. Usually 45%. This way, when the labor rate goes up, which it will, my income also went up. On the "control your spending" side of things, I have a rule. Walk away from every sale and research the value of the product. Don't get me wrong, when you NEED a 17 mm impact swivel socket, go buy one. But when you want a new surround sound amplifier to piss off your neighbors, walk away, if you still want it tomorrow, and you can afford it, buy it.

[@davidsawyer1599]

The point about saving not being taught at home or school rings so true. I was taught to save some portion of my earnings at home. I found it odd that in school it was never even mentioned. Saving should be part of the curriculum. Possibly a year of an entrepreneur program. Unfortunately school curriculums are not focused on making students a success in life. Great vid Charles!

[@charliemagoo7943]

Ive always thought it odd school teaches how to make money but not what to do with that money

[@trevwyatt9329]

First time watcher - outstanding delivery , Thank you for changing my attention direction !

[@leonchinea260]

Currently working at Toyota in the parts department. Hoping to move up into the Lube Tech position with the goal of becoming a Line Technician after that. This video couldn’t have come out at a better time. Thanks 👍

[@randomron67]

Sing it brother!!! Even if only 1 person gets help from this video (series) it's worth it!!!

[@Cookie-jv3xr]

I'm not a mechanic but this is great advice, in the UK we're still not fully back a work.

[@joshcosta423]

I wish I would have loved this way when I started as a technician. Instead I took on a car payment and bought a new tool box and new tools all while never saving a dime towards my retirement. Now I'm having to play catch-up...

[@tedbonbrake1967]

Great Advice. I LOVED working flat rate! Feast or Famine, if you don't play it right.

[@nizarchaya2424]

A must watch for a lot of people in any career phase, and for any career for that matter.

[@johnspace1876]

Yeah, Beard Repo here. Dully, noted.

[@Cellomaster1234]

Thank you for this video Charles!! I came into this video thinking I was going to send this to our newest tech in the shop, but I ended up learning a lot!!

[@sensiblewheels]

This was amazing! Glad I found this video, even though I'm not into this field. This is the advice I hope everyone lives with.

[@Juan-un4qr]

Very good advice, I’m 18 fresh out of high school and currently have a Mk6 Gti. Maybe golf r i’m drooling about can wait till after i finish at my tech school for my ase’s. I can definitely afford a golf r ( not bragging) but i will have to buy a lot of tools now that i’m going to school. Thanks for the tips Charles!

[@citrusfarmer]

I love this guy. Learned so much with him.

[@HumbleMechanic]

Thank you

[@anon5500]

Best advice I have heard, and yup I have been there!🙈 does lead to poor choices…..

[@ryansauto93]

This is great advice for anyone. I work in a salaried position so I get the benefit of having the same paycheck every time. What I have done is every time I get a raise, I take the difference and put it in retirement or savings (or both), making my net pay the same, forcing me to live the same lifestyle even if I am making more. Set everything on automatic and your savings becomes like paying a bill, and it adds up fast.

[@jamespn]

Budgeting on flat rate is a similar issue with auto workers, they got used to the overtime pay and spent it and later suffered when overtime was cut, unions went on strike, or when the company lays off employees.

[@VillagransPitStop]

Love it I’m currently in school to become a Technician

[@rogerprestidge1913]

Eyes opend bro thank you 👊

[@richardbenson4750]

Can you do a tool brand comparison? I mean like a good, better, best, and garbage type of classifications? I know that with some tool brands there are huge differences in quality and prices and some not so much. I have no problem paying for quality but I don't want to pay for just the name. Thanks and awesome video like always.

[@gracesondomei1423]

Is really worth listening, thanks for sharing the experience.

[@Oofsmageroo]

Im new to flat rate and doing okay after 3 months another thing is to learn the systems especially with warranty and TA jobs. I've found i was leaving a lot of hours on the table by not putting the right codes that would have gotten approved

[@patkelly7999]

Great advice Charles, You are a good man:):)

[@keltecshooter]

Ah the tool truck trap ! I never floated a big bill and always paid it off before buying something else , heck I even bought some sockets and wrenches one at a time based on need not want

[@deadzombiekilo]

Extremely helpful advice! Thank you

[@FluffyMexicanik]

What really sucks is when u make the 60hrs a week...you live the 40hr wk life style and inflation hits and everything including rent goes up 20-30% and now you end up making 30hrs a week if youre lucky...the slow times are becoming slower

[@shemmo]

Flat Rate Master has left the room :D

[@johnkillick6061]

80% of people I work with live beyond means, I drive a lorry in uk and repair cars for a hobby/ personal use in my spare time ( my farther always said “ if you haven’t got the cash you can’t afford it ). 😁💰💰🇬🇧

[@clintmeyer2112]

$15 an hour I got out when it was $25 an hour in 1991. When they wanted you to buy the then pos scan tools, w with ctc plug in moduals . I wanted portable scopes with real time read outs. I was told I was crazy. Those Hugh Sun scopes with printed sheets with the phony compression test,was all you need! It took decades for snap on etc to get with it. Thank god for vag com! Great things changed but took too long lot of good tecs left, better money, without buying your own tools. Question why do office worker not have to buy their own chairs desk paper clips paper printer lights etc. Some day and I don't like unions, but mechanic need to get paid much more than say a doctor. As one doctor told me when a mistake was made "things fall through the cracks " try telling that to your next come back customer . Oh and don't forget to charge them for your mistake.

[@drummerTBM]

Screw flat rate, it’s all to take advantage of the tech. Not to mention starting techs are incredibly underpaid now a days. Left the dealership world and now work at a fleet hourly. Never going back

[@christopherelrod8788]

I got 100 bucks to pay off the Mac man. He came at the right time for some swivel sockets I needed right then lol. So not bad

[@southhillfarm2795]

Great advise for any entrepreneur or anyone in seasonal work. The way the work world is now and is probably going, the gig economy is something that trades people have lived with for many decades.

[@TheAdenau]

Great video mate, never a truer word said👊

[@iamtheoffenderofall]

The whole world needs to go on some sort of flat rate system. I can implement it in every profession. Soooo many people mismanage time and money. Being on flat rate...you will be forced to learn both or you will starve.

[@ferrofilos]

Tnx men, you are worth watching

[@martins4118]

This can be financial advice for pretty much anybody who has a limited budget not just someone who works as a mechanic.

[@dealershiptechtruth]

17 year Master/Expert volvo tech here. I have since left the industry (thank god) and I am one of those techs that grossed $10k/month with minimal come backs and quality repairs. That being said, being a flat rate mechanic should have died 20 years ago and I encourage EVERY young person to stay away from the dealerships, especially corporate dealers. They are corrupt, bad benefits, and greedy. I Look to start a channel soon explaining how this is true.

[@WildTazz]

I wish I would have learned this when I first got into the industry

[@vttperformance9825]

This is just good money management, period. Not just for mekaniks

[@Keepin-it-wheel101]

love this series. great job.

[@bonperal]

Thanks Dad! WAIT! I'm probably old enough to be your old man! Great advice for all.

[@nonplayercharacter9653]

Definitely requires putting your opinions about flat rate on the shelf but great video bro!

[@ALovelyBunchOfDragonballz]

I just got a new box. I feel like I failed this already :) But I'm young, so if I get my box now and just get it over with I wont have to make any big purchases later when it matters a bit more. But I budget based on my lowest checks, so I should be okay.

[@HumbleMechanic]

Keep on grinding

[@300DBenz]

I have a rule: only 1 tool off the tool truck at a time, pay it off in one go, and don’t buy another tool from them until the credit card I used is fully paid off. Keeps from getting buried in debt. Which was very key this year: even thought I’m hourly, my paycheck was smaller because we went to a 4 day week. And yet I still managed to put a lot of money into savings, because I cut spending to the bone. Stopped having lunch at my regular restaurants, only spent money on bills, groceries, gasoline and parts to keep my 20 year old daily driver running, and of course the tools I need right now (not the fancy, neat-o tools I want).

[@Drunkis1337]

I don't know if this is weird but I keep a mentality that I'm broke and can't afford anything until my bills are payed. Including my tool payment. After everything is payed then I consider myself in the green and not in the red. After that I can afford everything else. If you plan on being in this business for an extended period of time then you should include your tools as part of your monthly expenses.

[@thecspot1387]

I'm in a great environment. I'm not the best but I just made it to flat rate. There are 3 techs at my dealer that are doing 350 flat rate hours per month .

[@ryanscott4237]

Charles, you should hook up with Dave Ramsey. You could do a project together on being smart with your money.

[@kelvinpena76]

Live within your means

[@jeffboyer39]

Hi, Have you ever seen a rocker arm snap in half on a 2.0 tdi ? My good friend had replaced a lot of the timing components and the engine seem run well but it happened to running on 2 cylinders. Found on exhaust side rockers snapped in half. So is there a good video somewhere 2015 2.0 tdi . Off topic I know. Have a safe day.

[@DigitalDissident]

I'm thinking about buying an E82 N55 135i

[@Me-sb3mx]

Hey Charles can you make an update video on all your cars with walkarounds ?

[@pudermcgavin4462]

When I buy tools it's about 25 a week, no new purchases until paid off. Only ect is specialist tools as long as not exp ones say a added socket or say stethoscope. And I've been 20plushish years into it

[@thanwin1482]

Dude, thank you so much.

[@ricardoarohenapagan9149]

Golden advise!!!!

[@Wac32]

0% salary just 25% lab rate per hour you sell is even more scary when there are quite times😂🤯

[@zues2013]

This is how you OUGHT to live regardless of your occupation. Commission flat rate hourly salary doesn’t matter live less than what your perceived means and you will never fall into dark times due to having a safety net

[@salleluj]

Speaking of buying yourself a new hat....get those hats in the store!!

[@xboxman309]

My shop screwed me hard. They moved me over from doing tiers witch was a hourly to being a tech. I was super excited. They put me right on flat rate. Im here 50 a week and barley pulling 400. The older guys don't show me new things along with keeping all the tickets. and management keeps giveing oil changes to tier guys and sales people. When I'm setting next to my toolbox. I've talked to the manager and they keep saying I'm not ready yet no one training me on how to do things. 😑

[@Drunkis1337]

Find a new job.

[@davntelisha19]

Wise man safe your money 💰

[@austingibson3315]

Ding ding ding! I think we have a winner!!!

[@austingibson3315]

I wish business owners talked with their techs about this.

[@natewho4366]

Whats the time frame for a new tech to go flatrate?? Thanks.