In recent years, the costs associated with automobile repairs have drastically increased. This blog aims to shed light on the key factors contributing to this surge in repair costs and explores how the aging vehicle population plays a role in driving up repair expenses. Additionally, we will discuss what this means for drivers such as yourself and how you can plan ahead to protect your vehicle (and your wallet).
One major reason behind the escalating automobile repair costs is the impact of inflation, which affects the prices of car parts. Here's how inflation contributes to this phenomenon:
a. Raw Material Costs: Inflation affects the prices of raw materials required for manufacturing car parts. As the cost of metals, plastics, and other materials increases, so does the price of the components used in repairs.
b. Manufacturing and Distribution Costs: Inflation also affects the expenses associated with manufacturing and distributing car parts. As the general cost of doing business rises, suppliers and manufacturers pass on these increased expenses to consumers, resulting in higher prices for replacement parts.
You may have seen this graphic on our instagram. It shows how dramatically car repair costs have increased since 2020. Follow our socials for more content like this.
The automotive industry heavily relies on semiconductor chips for various functions, including engine control, safety systems, and infotainment. However, a worldwide shortage of these chips has disrupted vehicle production, leading to a limited supply of new cars. Consequently, more people turn to the used car market, driving up the prices of pre-owned vehicles. Greater demand for used cars can in turn put upward pressure on the costs of repairs, as more and more drivers need their cars fixed.
The average age of vehicles on the road has been steadily increasing in recent years. As vehicles age, they are more prone to experiencing breakdowns, leading to a higher likelihood of requiring repairs. The older a vehicle gets, the more likely it is that multiple components will require replacement, leading to higher repair costs for drivers.
As car parts and used car prices continue to rise, the cost of automobile repairs has experienced a significant upswing. Additionally, the aging vehicle population adds to the likelihood of repair needs and further contributes to escalating costs.
Vehicle owners should be prepared for potential financial burdens resulting from these factors. While regular maintenance and budgeting for unexpected expenses can help prepare you for rising repair costs, an unexpected breakdown can occur at any time. One way to help mitigate this risk is with ZoomiCare. A ZoomiCare subscription protects and prepares you for breakdowns, turning a multi-thousand dollar nightmare into an affordable monthly subscription that pays for your unexpected breakdowns.