Your next trip to the mechanic may hit your wallet harder than you prepare.
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- Several industry factors have led to the rise in the costs of car repairs in the United States.
- Soon, the cost of buying a second-hand and new car could skyrocket because of some of the same factors.
According to CNN, car repair costs are up 15% year-on-year.
In 2025, auto buyers face extreme market uncertainty due to car imports and some tariffs. The prices of new vehicles are not yet severely affected, but repair costs for the vehicles are increasing.
Customs duties are not the only reason why repairs are more expensive. Here are some reasons why you will face extreme sticker shocks during your next trip to the mechanic:
Why car repairs are becoming more expensive in 2025
The perfect storm is to jack up the cost of repairing your car. One factor is that drivers maintain their vehicle’s average age on the road for a long time. Other factors include more complex vehicle systems due to technological advancements and a lack of qualified engineers.
In short, American drivers have been keeping their vehicles longer thanks to new car prices. Additionally, the inclusion of more sophisticated systems makes new vehicles difficult to modify and require skilled technicians.
Aside from old cars on the roads, a lack of engineers and advanced vehicle technology, there are tariffs, which are another major factor that increases repair costs for American car owners. Customs duties increase the cost of repairs as imported parts are more expensive. More expensive replacement parts made abroad increase repair costs, so even drivers who have not purchased the vehicle will not be spared from the effects of tariffs.
How tariffs will affect the automotive industry in 2025
Ford estimates that $3 billion in tariffs have been hit in 2025, Reuters said. According to Motortrend, customs duties will raise Volkswagen’s prices on some models by up to 7%.
https://www.youtube.com/watch?v=9cdnryfdec4
Automotive Tarif costs billions of dollars from the world’s largest automaker. These costs are beginning to be fooled by consumers as the year ends. While many automakers have successfully protected consumers from the effects of tariffs, not many companies can withstand before they raise new car prices.
Should I get a new car before the price increases?
According to the Kelley Blue Book, new car prices rose 2.6% from July to August. Prices have been relatively stable over the last few months, but there are signs of a major move in the future.
Getting a new car now will help you dodge the higher departure prices caused by future tariffs, but there are a few things to consider before jumping on a new car deal. First, new vehicles could lose 20% of their value in the first year of ownership. Car insurance and registration costs for new vehicles are usually higher.
Depreciation gently uses a car that is used more gently than a new one for many drivers. That being said, if you’re looking for a new car deal in 2025, there are still plenty of promotions and incentives. Bestselling nameplates like the Toyota RAV4 ($29,800) and the Ford F-150 ($38,810) remain relatively affordable. In fact, Ford’s pro-American campaign has led the carmaker to raise incredible sales despite tariffs.
In 2026, repairing your car and buying a second-hand or new one, or buying a new one, says the future of trade over the next few years is bleak, and average tariffs could continue to increase by 2028.
