Everything about owning a car is getting more expensive. Not just the price tag when you purchase it, but also the insurance, and now the maintenance costs are going up as well.
Mitchell, which provides automotive repair software, says there are several reasons why the consumer is paying more for repairs.
Heavier vehicles. New cars are becoming more complex, materials and new manufacturing methods, and a shortage of mechanics stemming from COVID-19.
New numbers show the cost of repairing your vehicle is in line with the cost of inflation. From November of 2013 to November of 2023, car maintenance has jumped by 4.1% per year.
Since COVID, repair costs have increased on a year-by-year basis from 3.5% to 5%, according to Mitchell.
Matt Moore from the Highway Loss Data Institute says the cost of collision insurance claims is increasing.
Several factors as to why cost has risen.
Vehicles are heavier today than compared to the 1980’s. They are more powerful. Speeding and traffic wrecks are on the rise.
Another reason why car repairs are more expensive is the increase of computers in cars.
“The computerization of cars has been slowly developing for decades, but it changed “dramatically” in the last decade. “You can have the same kind of accident that you would have 10 years ago,” but now there are additional sensors that are on the part of the vehicle that was impacted that you now have to potentially replace, said Ryan Mandell from Mitchel.
According to Mitchel, in 2019, the average rate for car repairs was a little less than $50 an hour. Now, at the beginning of 2024, it’s right around $60 per hour.
Also, when the shutdowns took place in 2020 and states slowly began to open back up, that also elevated the price of parts.
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