Car Repair Expenses Are Surging, and It's Not Solely Due to Tariffs | Carscoops

      The expenses associated with vehicle repairs in America are increasing, and tariffs are only part of the issue.

      

      Car repair costs have risen 15 percent compared to 2024, according to Consumer Price Index (CPI) data.

      The 25% tariffs on imported parts have contributed to the heightened repair expenses.

      Additionally, factors such as complex technology and a shortage of technicians are also at play.

      If your car seems like it needs some maintenance, be prepared for potentially high costs. The rise in repair costs in the U.S. is happening at a rapid pace.

      Even with billions in tariffs affecting imported cars and parts, the prices of new vehicles have remained relatively stable. Instead, car owners are feeling the financial strain at repair shops, as indicated by the government's Consumer Price Index, which shows a sharp increase in costs.

      The most recent CPI data reveals that the average cost of auto repairs surged by 5 percent from July to August, marking the largest monthly increase ever recorded. Compared to last year, repair expenses have risen 15 percent, with little hope for relief.

      While it's easy to attribute this solely to tariffs, particularly since the U.S. imposed a 25 percent tax on imported auto parts earlier this year, experts maintain that the situation is more complex.

      “There are numerous factors involved,” Skyler Chadwick, director of product consulting at Cox Automotive, told CNN. “Tariffs are one aspect, but we also have aging vehicles, a lack of qualified technicians, and cars that are increasingly complicated to fix.”

      Nevertheless, tariffs are undoubtedly part of the issue. Most aftermarket parts are imported, which means that even vehicles labeled as “American-made” rely significantly on foreign components.

      The Ripple Effect

      While manufacturers have largely absorbed tariff costs to keep the prices of new vehicles stable, repair shops haven’t had the same flexibility. Consequently, when your vehicle requires a new part, the expense is fully passed on to you.

      Moreover, as drivers hold onto their vehicles longer, this trend is exacerbating the situation. The average age of cars on U.S. roads is now 12.8 years, up from 12.6 last year, leading to more significant repairs such as transmission overhauls, suspension changes, and engine repairs.

      “The older the vehicles, the higher the likelihood they will need substantial service – including transmissions, suspension parts, and engine rebuilds – which tend to be the most expensive,” Chadwick noted to CNN.

      Increasing Labor Costs

      Labor is another rising cost in this equation. Chadwick reports that labor now constitutes about 60 percent of an average repair bill, with the shortage of skilled technicians showing no signs of improving, a fact also noted by Ford CEO Jim Farley.

      This shortage has driven wages up approximately 7 percent over the past year, according to the Labor Department, and new technologies like advanced driver assistance systems (ADAS) and electrification are making repairs more labor-intensive and equipment-dependent.

      Repair or Replace?

      With the average price of a new vehicle around $48,400 in August according to Edmunds, and the prices for used models climbing 26 percent since 2019—or even as much as 40 percent for lower-mileage vehicles under three years old—affordability has become an acute challenge.

      Additionally, high-interest rates are keeping loan payments elevated, with one in five buyers paying over $1,000 per month, and more than 30 percent of used buyers now spending $600 or more. Consequently, many Americans are opting to repair rather than replace their cars.

      “When consumers find new vehicles prohibitively expensive, they are investing more time and money into fixing their current vehicles,” said Patrick Anderson, president of the Michigan-based think tank Anderson Economic Group.

      However, with record-high repair costs, the actual savings may not be as substantial as consumers had hoped, and it seems the financial strain is unlikely to ease anytime soon.