Car repair costs rise as shops pay for vehicle technology
Vehicle repair prices have outpaced overall inflation, while shops cite software, diagnostic gear and sensor calibration costs.
By Sofia Marchetti · World Affairs Correspondent
3 min read
Car repair costs rising have outpaced overall inflation since 2019, according to CNBC’s review of federal data. The trend does not establish a single cause, but repair shops and AAA say newer vehicles require costly diagnostic equipment, paid software access and calibration work that can add to customers’ bills.
Motor-vehicle repair prices increased about 60% from January 2019 through August 2026, compared with a 32% increase in overall inflation over the same period, CNBC reported. The data does not show how much of that rise is attributable to vehicle technology, and other reported contributors include labor, supply-chain conditions, vehicle materials and the maintenance needs of aging cars.
Why are car repair costs rising?
Modern vehicles often need a laptop to diagnose or complete a repair, and in some cases it must be a computer dedicated to a particular brand, Greg Brannon, AAA’s director of automotive engineering, told CNBC. Shops may also need subscriptions for software and vehicle data, purchased for periods ranging from hours to a year.
Those recurring expenses pose a particular challenge for independent garages that aim to work on many makes and models, Brannon said. A Brooklyn shop owner, Ralph Czeisler of Emil’s All-Tire, told CNBC that he updates several computers each year to service domestic, Asian and European vehicles and passes some of the expense to customers.
Advanced driver-assistance systems are one clear example. A 2023 AAA study cited by CNBC found that calibrating those systems can increase the cost of a collision repair by 37.6%. That finding concerns collision work, rather than every type of repair.
A windshield replacement can now require calibration of a camera used by driver-assistance and active-safety functions, CNBC reported. At Czeisler’s shop, an invoice showed a calibration machine cost about $28,000 and the associated computer another $12,000; a broader equipment array can cost as much as $90,000, according to the report. Model-specific calibration target boards can add hundreds or thousands of dollars, an employee at the shop said.
What does vehicle technology add to a repair?
Technology can add costs after both collision damage and routine service. Czeisler told CNBC that a luxury-car oil change priced at $400 could require an additional $75 in software access to reset the vehicle’s oil-change indicator.
Automaker and repair-industry trade groups have had agreements since 2014 intended to give independent shops access to the parts, tools and information available to larger dealerships, CNBC reported. Brannon said information is generally available, though exceptions occur; most concerns reported to a task force involve the cost and difficulty of obtaining data.
The Hartford, an insurer, also identifies specialized equipment, training and materials such as aluminum and high-strength steel as factors that can make collision repairs more expensive. For drivers, the result can be a repair process with more diagnostic, programming and calibration steps than a similar job on an older vehicle.
This story draws on original reporting from CNBC.