I work part-time as a boat mechanic. Round these here parts (the terrible suburbs of Northern Virginia) most boat mechanics are either sallary or by the hour...very few flat-rate. As for cars, I'd guess it is about half and half.
My opinion on flat rate is this: If I had to take my auto to a mechanic (which is highly unlikely), I would try to avoid flat-rate workers. Flat-rate guys are trying to make money by doing as many jobs as fast as they can. They sacrafice quality for speed...use impact wrenches everywhere and strip bolts.
I know a few flat-rate guys. One of my colleges at work used to do flat-rate motorcyle repairs. He says some of those guys were monsters.
A good repair takes patience and time to do...something flate-raters don't, and never will have (don't blame them thouh, because it isn't their fault).
Jay
PS...I get paid by the hour
