Expensive Times
We’re living in tough times financially; the world’s overall cost of living has risen and continues to rise for a number of reasons. In the automotive industry, we continue to see fluctuating fuel prices as the main pain point right now.
However, fuel prices don’t seem to be the only rising cost of vehicle ownership. According to a report, prices for car repairs have slowly and sneakily risen over the past few years to a really high point.
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60% in 6 Years
According to numbers and data published by the Federal Reserve Bank of St. Louis, rising vehicle repair costs paint a bleak reality; the data covers a period from January 2019 to now (August 2026) and shows repairs have risen by an average of 60%. What’s shocking is that this nearly doubles the inflation rate, which averaged 32% over the same period.
The report says part of the reason repair costs are increasing is the additional technology in modern cars. This has forced independent workshops to invest in high-tech equipment and in more skilled mechanics.
For example, CNBC interviewed mechanic Ralph Czeisler and asked why prices have gone up; he said most modern cars require a laptop and software to fix. According to this mechanic, some brands require specific laptops, and the software is subscription-based.
“I have multiple computers for domestic, Asian, and European cars, and it’s very costly. Every year they make changes, and it costs more money and more money. And it’s getting very challenging, ” says Czeisler. Something as simple as replacing the oil is now costlier, because modern cars have software that needs to be reset to bring the oil change interval back to zero. Sometimes oil changes can add an additional $75 because of these small inconveniences.
Not As Simple As It Used to Be
It isn’t just down to software and laptops; it has also come to light that because ADAS systems are now mandated by law, average collision repair costs have gone up by 37.6%. Replacing a windshield used to be simple: just new glass and labor, but new cars now feature ADAS cameras and sensors behind the windshield. This means that after every replacement, these need to be recalibrated. According to Czeisler, the calibration computer costs $28,000, plus another $12,000 for the computer that runs it.
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