Car Repair Prices Soaring
Despite billions of tariff costs for imported cars and parts, the new car prices have remained relatively flat. But the news is not so good for car owners who bring their vehicles to the repair workshop.
Increase in Repair Costs
According to the latest consumer price index, the price of car repairs rose from 5% from July to August. This is the largest one-month increase in reactions, and repair costs have now increased by 15% compared to a year ago.
Factors Contributing to the Increase
There are several factors contributing to the increase in repair costs. The growing age of the vehicles on the street, a lack of technicians in the industry, and more complex vehicles are some of the reasons. Customs tariffs are also a significant factor, with many imported parts being subject to a 25% tariff.
Impact of Tariffs
The tariffs have had a significant impact on the cost of parts, with many car owners facing increased costs for repairs. Even if a car is made in the USA, there is a good chance that the parts will come from Mexico or somewhere else overseas, making them subject to the tariff.
Car Manufacturers’ Response
Car manufacturers have been trying to absorb the costs of the tariffs, rather than passing them on to consumers. This is partly to avoid annoying the Trump administration, especially since car manufacturers have received breaks in regulations. However, there is less pressure to keep the prices for auto parts in check, which is why repair costs are increasing.
Age of Vehicles on the Road
The increased age of the vehicles on the road is also a significant factor in the increase in repair costs. As cars get older, they require more expensive repairs, such as transmissions, suspension parts, and engine rebuilds. The average vehicle age has increased to 12.8 years, which is a significant jump from the previous year.
Labor Costs
Labor costs also make up a significant portion of the repair price, with a lack of qualified repair workers driving up these costs. The latest data from the Ministry of Labor showed that car repair wages rose by 7% between 2023 and 2024.
Conclusion
The increase in car repair prices is a significant concern for car owners, with tariffs, the growing age of vehicles, and labor costs all contributing to the rise. As cars become more complex and the demand for qualified repair workers increases, it is likely that repair costs will continue to soar.
