Higher-Tech Cars Drive Up Repair Costs for Mechanics and Consumers

As automotive technology evolves, cars are getting more and more expensive to repair.

That’s because repair shops are being forced to spend more on software and calibration equipment, expenses that are being passed onto drivers, CNBC reported Saturday (Oct. 3).

“The repairs of these vehicles are so sophisticated now and almost always require a laptop,” Greg Brannon, director of automotive engineering at AAA, told CNBC. “It has become increasingly financially difficult for independent shops to be able to service all makes and models.”

The report cited Federal Reserve data showing a 60% increase in repair costs between January 2019 to August 2026, a figure that is almost double the 32% increase in overall inflation during the same period.

While the data does not say why prices have gone up, research indicates technological progress is partially to blame. For example, replacing a cracked windshield used to just mean ordering and installing new glass.

Now, the camera behind the windshield needs to be calibrated, said Brooklyn mechanic Ariella Czeisler, with a single calibration machine costing about $28,000. That’s to say nothing of the thousands of dollars required for related equipment.

“God forbid we don’t calibrate the windshield and that camera is malfunctioning,” said Czeisler. “The car can brake unexpectedly and cause an incident from the rear. We don’t want to be liable for that.”

This is happening at a time when consumers are feeling increasingly woeful about the state of the U.S. economy.

For example, the most recent University of Michigan Surveys of Consumers showed that index slipping 7% between August and September, and down 12.7% year over year.

Surveys of Consumers Director Joanne Hsu said the decline was due to worries about high prices, which dampened views of their current and year-ahead expected personal finances, and increased concerns about elevated fuel prices and trade disputes, which hampered consumers’ short-run outlook for business conditions.

Meanwhile, the PYMNTS Consumer Expectations Index for September declined 0.7 points to 54.1 as feelings about the economy, buying conditions and job mobility soured. Most of the decrease was driven by feelings about the overall economy and the timing of major purchases.

The report likened the state of consumers’ personal finances to the gas gauge of a car that holds the same number of gallons as before but has begun burning fuel more quickly.

“That’s effectively what’s happening to household savings. Confidence is holding steady, but rising costs mean savings buy less time than they used to,” the report said.