The price of car repairs has increased by nearly 20% in the past year, as shown by the consumer price index. CNBC spoke to experts in the industry to pinpoint what the causes of these price increases could be.
With vehicles becoming more technologically advanced and sensors being placed in areas such as the bumper, which are commonly damaged, these electronic components can make jobs more difficult and drive up prices.
Shortages in the supply chain have also made parts more expensive, as well as causing the new and used vehicle market to shrink, resulting in consumers keeping older vehicles rather than buying new ones, according to S&P Global Mobility analysts.
The sharing of photos and videos with customers to show problems with their vehicles can increase the cost of a repair by $260 and is also listed as a potential reason for the increase in prices.
According to NHTSA data, car crashes have also been on the rise. This combined with a decrease in technicians has caused the cost of labor to climb.
Though the industry continues to face these issues, Cox Automotive data shows that revenue generated from repair orders was up 31.8% in June compared to January 2019.
