Auto Repair Costs Spike by 5% Between July and August

The latest Consumer Price Index revealed that prices for automotive repair jobs have spiked by 5%, reports CNN.

It marks the largest one-month increase on record, and a 15% increase in repair prices from last year. The cause behind the rise can be attributed to a myriad of factors, including tariffs that went into effect this May, shared Skyler Chadwick, director of product consulting for Cox Automotive.

These factors include a growing average vehicle age, a technician shortage, and vehicles becoming more intricate and complex. It’s impossible to ignore the impact of tariffs, though, with aftermarket repair components being primarily imported, facing levies of 25%.

“The cost of parts has gone through the roof because we have to pull those parts in from other parts of the world,” explained Chadwick. “You could be a lucky customer who draws that lottery ticket and needs an American part. Otherwise, your part is subject to a 25% increase.”

Additionally, Chadwick pointed out the average vehicle age, which continues to steadily rise.

“In 2024, we saw the average vehicle age at 12.6 years. Now in 2025, we see that number jump to 12.8 (years),” Chadwick told CNN. “That’s actually quite a big jump. We haven’t seen a jump like that in quite some time.”

Drivers are holding onto vehicles longer due to compounding financial pressures. Car prices and high interest rates continue to plague owners of both new and used vehicles. According to Edmunds, the average transaction price of a new car in August was up by more than 30% from August 2019. Used car prices were also up by 26% over the same timeframe.

Repair shops also have to contend with a shortage of automotive technicians, leading to the cost of labor rising. Between 2023 and 2024, auto repair wages rose by 7%, according to the most recent data from the Labor Department. Labor costs can account for roughly 60% of a repair estimate, said Chadwick.

“The technician shortage is a huge thing. Labor (cost) is going to continue to increase,” Chadwick said.