October 2, 2023

3R Trail

Feel the difference

Analysis: The rise in vehicle repair costs

Picture credit history: Depositphotos.com

About the several years, the value of fixing a car has regularly improved. On the other hand, we have noticed a much far more dramatic enhance in current several years, primarily due to supply chain concerns.

Stats expose that we’re seeing the most substantial enhance considering the fact that 1974. The U.S. Bureau of Labor Stats showed a 15 per cent maximize in motor car components and tools more than a 12-thirty day period span ending June 2022.

Bottom line: Shoppers are shelling out extra revenue than ever in the automotive aftermarket.

There are numerous motives why there has been a rise in automobile repair service expenditures. Listed beneath are the significant explanations why the aftermarket is obtaining to demand a large amount more to buyers.


Raw elements these as oil, tires and other automobile areas have found a considerable maximize in charges. It is costing suppliers much more to get what they need to deliver aftermarket parts.

The natural way, that price is passed on by the source chain. This has led to automobile treatment companies elevating their cost of maintenance to maintain their small business afloat and however provide top quality repairs.


The pandemic has impacted all industries which include the automotive market. Safeguards and illnesses slowed down the provide chain. Makers experienced less personnel to keep operations likely — or experienced to pause fully owing to absence of staff. Shipping ports confronted these troubles often.

Moreover, while numerous services and repair shops stayed open in the course of the pandemic, some experienced to near their doorways, even if it was for a transient period of time of time. Comparable to the travel industry escalating rates to make up for dropped income when people would not or couldn’t hop on a airplane or stay in a lodge, some retailers amplified charges.

For collision shops, element shortages and elevated expenditures are resulting in insurers getting extended to settle incident claims.

Prospects like the concept of Do it yourself

Inflation is on the rise. Paying power is down. During these instances, individuals glance for means to conserve revenue. Do they require to go to their area store to swap out a lightbulb, transform their wipers, replace brake pads or do an oil change?

A recent survey showed that  57 per cent of Canadians would perform Do it yourself repairs on their car. It’s a amount that could boost as mend prices go up.

A study discovered that COVID-19 pushed shoppers to do a lot more matters at home. With much extra free of charge time, people acquired many factors as a result of the world-wide-web which include how to complete many checks and repairs.

This shift could lower reliance on the aftermarket.

Extensive wait instances

The pandemic has also disrupted the offer chain with the scarcity of workers. Shipping and delivery occasions for provides and applications have been appreciably delayed with the lack of containers and ships travelling across the ocean.

With labour shortages in each and every business, the time it takes for the provides to be manufactured and transported out has substantially modified the services of the automotive industry. Aftermarket suppliers have moved office environment personnel into warehouses on a rotation to support with these challenges get product or service shifting. They are on the lookout at greater recruitment procedures like improved rewards and bonuses to maintain staff prolonged time period.

Inspite of these endeavours, there are nonetheless major delays, ensuing in longer than sought after wait around periods ahead of autos can be returned to the buyer.

Progression in technologies

With cars becoming far more and much more sophisticated each day, technicians are required to study and develop as new updates occur out. Sophisticated Driver Guidance Methods (ADAS) can be conveniently damaged and at times will need properly trained professionals to do the fix.

This is a specialised ability, necessitating unique and high-priced machines. Shop coaches motivate the aftermarket to charge much more in these parts as the expenditures involved with ADAS repairs are distinct from, for illustration, an oil alter. All of which is additional driving the price tag of fixing a car or truck up.

There are also various new products utilized in cars at present. Aluminum, for case in point, is applied to light-weight make cars and trucks, earning them a lot more gas economical — but also tends to make a motor vehicle a lot more high-priced. Even uncomplicated repairs this kind of as a windscreen crack have elevated in size of time and cost of the maintenance.

As we occur back again from the pandemic and return to our regular routines, we can see a beneficial improve over the future few of months in regard to the delayed shipping and delivery occasions and late production periods.

If we keep on to see a steady raise in source chain administration then the mounting rate of automobile fix may possibly sluggish down. But enhanced costs in uncooked elements depart industry experts predicting that the expense of repairing a car will not arrive down at any time shortly.

Reshika Pillay is an Australia-dependent freelance writer with an interest in all things in the automotive field.