Car repair costs have surged to record levels, with consumers paying sharply more for maintenance and parts. According to the Consumer Price Index (CPI), repair costs climbed 5% from July to August and are up 15% compared with a year earlier.
The spike is largely tied to tariffs. Since May, all imported auto parts have been subject to a 25% tariff, pushing aftermarket parts prices higher. Experts note that no car is truly 100% American-made, as even domestic brands rely heavily on imported components. With tariffs lifting prices across the supply chain, repair bills have risen quickly.
This trend contrasts with new-vehicle prices, which have remained relatively steady. In August, the average transaction price for a new car was $48,365, down 2% from the peak in December 2023. During the Trump administration, automakers were pressured not to pass tariff costs directly to buyers, and many absorbed the added expenses themselves. Automakers have also been cautious about raising sticker prices further amid sluggish sales.
Another factor is aging cars on the road. Consumers are holding onto vehicles longer, with the average vehicle age now at 12.8 years, up from 12.6 years a year ago. Older cars often require expensive repairs to engines, transmissions, and suspensions, driving costs higher.
At the same time, a nationwide shortage of mechanics has pushed wages up by 7% between 2023 and 2024. With labor accounting for about 60% of total repair bills, higher pay rates have directly added to what drivers spend.
The financial burden extends beyond the repair shop. More than 15% of new-car buyers now face monthly loan payments above $1,000, while over 30% of used-car buyers are paying at least $600 a month. Combined with escalating repair expenses, the result is unprecedented strain on household budgets.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
