Americans are keeping their cars longer. And the repairs aren’t cheap.
- Pandemic-era shortages are still affecting the auto industry
- Americans are keeping their cars longer and paying more for repairs
- Good news: Prices for new vehicles are coming down
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(NewsNation) — As the U.S. works to overcome supply chain issues caused by the pandemic, one American industry is thriving: automotive repair.
Ask just about anyone who has tried to purchase a new, or even used, vehicle in the last few years and you’ll likely hear some horror stories.
But not for auto mechanics.
The cost of car repairs is up 19.7% in 2023, according to federal consumer price data reviewed by Axios.
The reason: computer chip shortages, low vehicle inventory and inflation all have Americans keeping their cars longer.
Inventory on dealer lots was expected to be just over 1.2 million vehicles in June, about the same as most of this year, J.D. Power said. But because of increased demand, supplies aren’t growing.
But there is a sign of relief.
Consumers paid an average of $45,978 per vehicle in June, according to J.D. Power estimates. That’s flat from June of last year, but almost $1,400 less than in December of 2022 when prices peaked.
The Associated Press contributed to this report.
