Why The Cost Of Repairing Modern Cars Has Only Gone Up
If you feel like you have to take your newer car in for repairs more often than your old one, you're not alone. Not only does it feel like more goes wrong with a modern car, but the cost of getting them repaired is going up. There are a variety of reasons this is the case, and a lot of it can be boiled down to the fact there are just more opportunities for parts to fail.
The rise of hybrid and electric vehicles has created a lot of benefits for consumers, but it has also come with some more costly repair bills. Battery replacements in hybrids and EVs have increased rapidly over the past three years. In 2020, these battery replacements were the 428th most-common job for a repair shop, but it rose all the way to 170th in 2022, according to The Drive. This could also lead to a battery shortage in a few years, making the repairs not only costly but lengthy as well.
More expensive cars means more expensive repairs
According to AAA, the average cost of repair is between $500 and $600. Many factors go into this, but a big reason is the fact that newer and more expensive cars simply mean more costly repairs. Labor costs have increased over the years and when that's coupled with the fact that repair shops need more advanced technology to work on modern cars, it's a recipe for a costly repair build.
Another thing to note is because of rising car prices, the average age of a car on the road has increased. As of 2021, that number was high as it's ever been with an average age of 12 years. That means there's a better chance of things failing in the car, which would in time lead to more repair costs. It's a vicious cycle that has only become more difficult to navigate through. Consumers holding onto their cars for longer has also caused the used car market to become pricier, although it is beginning to stabilize.
Car thefts aren't helping
Even if your car isn't outright stolen, a thief snagging the catalytic converter can set you back thousands of dollars. The price of replacing that specific part can be upwards of $2000, so it's not a cheap repair by any stretch. All across the United States, catalytic converter thefts are on the rise, and insurance claims have risen by almost 350% from 2020 to 2022. This has made them one of the most common repairs today.
According to Kelley Blue Book, hybrid cars are a bigger target for thefts as they have lower emissions than traditional gas-powered cars, so the metals in their converters are in better shape. As the world continues its push toward electric and hybrid cars, this may become a bigger problem. Several states have since enacted laws making it more difficult for thieves to sell these parts by requiring the vehicle's VIN number to be labeled directly on the converter. This doesn't outright solve the issue for older cars, but the idea is it will help make it less of a concern in the future.