Car repair costs are up almost 20% over the past year. Here’ss why

According to statistics, the cost of car maintenance has risen by nearly 20% last year consumer price index — More than six times the national inflation rate, the largest annual price increase of any household good or service.

So, what is driving the price up?

Experts say this is the result of a combination of factors. Some are emerging during the pandemic, while others are long-term trends in the auto market, they said. Here are six reasons why you’re paying more for car repairs.

A typical car repair can cost a consumer $500 to $600, sometimes “more.” according to to AAA.

AAA Northeast spokesman Robert Sinclair, Jr. said more advanced and more expensive vehicle technology is a big reason for rising repair costs.

Take advanced driver assistance systems, for example. Such technologies — such as automatic emergency braking, lane-keep assist or cross-traffic alert systems — have “proliferated” and are available in virtually any vehicle, Sinclair said.

The electronic sensors that facilitate these technologies are found in bumpers, fenders and grilles, parts that are often damaged in shipwrecks, he said.

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In other words, today’s cars are like computers that run on gasoline or electricity, said Skyler Chadwick, director of product consulting at Cox Automotive.

Not only is the technique of repairing damage more expensive, but the technique also requires greater precision and time to perform body work. For example, the paint thickness on car bumpers has to be “just right” for the sensors to work properly, Sinclair said.

Consider this: Because of these technologies, hitting a deer with a vehicle today could cost about $1,500 to $2,000 more in repairs than it did 15 years ago, one repair shop owner told Sinclair.

Sinclair said it’s not just a technical issue: Many auto parts have become more expensive during the pandemic because of supply chain issues.These supply chain issues created shortages of certain components (e.g. microchip), making it more difficult and expensive to replace parts during repairs.

A major long-term shift in the auto industry – towards more automation and electric vehicles – would also require more chips and put “further pressure on an already stretched industry”. according to JPMorgan.

The average operating age of passenger cars and trucks will increase from approximately 10.5 years in 2010 to 12.2 years in 2022. according to To S&P Global Liquidity.

The shortage of auto parts during the epidemic has put upward pressure on the average vehicle age. S&P Global Mobility Analysts wrote that the shortage has led to a reduction in inventories of new and used vehicles, and consumers are holding on to their existing vehicles for longer.

Chadwick said higher interest rates starting in early 2022 would also mean it would be more expensive to buy a car.

The number of crashes reported to police in 2021 is estimated at 6.1 million, up from about 5.3 million in 2020 data Prepared by the National Highway Traffic Safety Administration.

Fatalities also increased: nearly 43,000 people will die in motor vehicle accidents in 2021, according to National Highway Traffic Safety Administration (NHTSA) – top record since 2005 A 10.5% increase over 2020, the largest annual percentage increase on record. The number of people who will die in car accidents in 2022 is similar (though slightly less) at 42,795.

Sinclair said more car wrecks means greater demand for mechanics, which leads to higher prices for auto repairs.

At the same time, a Auto experts say a lack of available mechanics to meet the greater demand means higher labor costs.