Did you know consumer prices have hit a new four-decade high? With car repair
costs up by 6.1%, getting your car repaired can cost an arm and a leg. Jerry
, the car ownership super app
, investigates how the fast-paced inflation (the fastest since December 1981) is affecting the cost of car repair. Need new tires? Wait in line
Peyton Knight, the owner of Knight's Automotive Repair in New Jersey, used to repair engines for about $4,500, but now the cost has risen to $9,500 due to inflation, according to Fox Business
. That’s once he can get his hands on one after waiting months and months. Since the pandemic began, the cost of tires has increased by 40%. And the cost of brake rotors has increased by 20%. The Consumer Price Index is also expected to rise from 8.6% to 8.8%.
The cost of new vehicles jumped by 12.6% since last year and used car and truck prices spiked by 16.1%. Amid the price increases, many have turned to utilizing used car parts, making the cost of those go up as well. Where a transmission used to cost under $500, you can expect to pay about $2,500 now.
Supply chains are backed up and experienced technicians can be hard to find—especially ones who are properly trained to work on modern EVs.
And good luck getting an appointment at a dealership. Many have been behind for months waiting on parts. Some can’t even get their hands on tires.
Did you know that the average American car on the road is 12.2 years old? Conscious consumers are also hanging on to their cars longer than expected, so naturally, the cost of car repair would be even more
for these drivers. However, the sky-high prices are still less than buying a used car, for now. Global impact of car repair costs
In the UK, insurers can’t keep up. The cost of car repair spiked so fast, that UK insurance companies are feeling the pressure.
Shares for Sabre Insurance Group Plc fell more than 42% in July after warning that paint, car parts, labor, and the cost of fully replacing automobiles have increased faster than anticipated.
Other insurance rivals like Direct Line Insurance Group Plc and Admiral Group Plc have plunged by 13% and 18%. Hiscox Ltd., Beazley Plc., and Saga Plc dropped as well.
According to Bloomberg
, “While Sabre is a relatively small company, it’s a clear signal that other insurers will also be facing a squeeze on profits, and firms will find it more expensive to pay out on policies sold when times were cheaper.” Before tax, Sabre revealed that it took an 81% plunge in its first-half earnings. Saving money despite the cost of car repair
Another part of the auto industry hit hard by inflation
, earnings recovery will take time for those companies to deal with car repair on a daily basis. So how can you save money on car repairs in the meantime? Well, you can’t. But you can save money on your car insurance policy and tuck that money away for a rainy day. Did you know most of us are overpaying for our policy every month? If you want cheap car insurance quotes fast, download the Jerry
app. A licensed broker that offers end-to-end support, the Jerry app gathers affordable quotes, helps you switch plans, and will even help you cancel your old policy. Users save an average of over $800 a year. 
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