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From Parts to Labor: What’s Really Driving Up Your Auto Repair Bills

If you’ve noticed your vehicle maintenance costs or auto repair bills creeping up lately, you’re not imagining it. According to fresh data from the Consumer Price Index, auto repair costs skyrocketed 5% in just one month (August 2025) and they’re now 15% higher than they were last year. That’s the biggest single-month jump on record!

At Good Works Auto Repair, we’re hearing customers wonder about this every day, and it’s time to answer a few questions. What’s really behind rising auto repair bills, and how does it connect to the bigger economic picture? Here, we’ll break it all down and also explain why sticking with your current ride might still be a smart move.

What Are the Main Culprits Behind Higher Auto Repair Bills?

1. Tariffs on Car Parts

Back in May 2025, a 25% tariff kicked in on imported auto parts—and guess what? Most vehicle parts aren’t made in the USA, even if you’re driving a “Made in America” brand like Ford or Chevy. Many parts are sourced from Mexico, China, or other parts of the globe. This has significantly impacted vehicle maintenance and repair bills as auto repair shops like ours have no choice but to pass some of that additional cost on to customers.

2. Older Vehicles

It’s not just tariffs that are causing a spike in auto repair bills. Our vehicles are getting older. In fact, the average age of vehicles on the road in the U.S. hit 12.8 years this year, up from 12.6 last year. Older cars mean more wear and tear, leading to pricier repairs, such as transmission overhauls or engine rebuilds.

3. Increased Labor Costs

Nationwide, there’s a shortage of skilled automotive technicians. According to some sources, this led to a 7% wage increase last year alone. With labor making up approximately 60% of a repair bill, it’s no surprise that auto repair bill totals have jumped up significantly.

4. Modern Vehicles

We all love the enhanced features that modern cars come with, but that also means they’re packed with technology that requires specialized, expensive parts.

Add all these factors together, and it’s a perfect storm that often equates to paying more every time you visit your local mechanic.

How Rising Auto Repair Bills Fit Into the Bigger Economic Puzzle

When you zoom out a little and take a look at the big picture, it’s easy to see that car repairs aren’t the only thing pinching wallets these days. Inflation has affected everything, from groceries to gas, and many Americans are feeling the squeeze on their household finances.

• New car prices – In August 2025, they averaged just over $49,000, according to Kelley Blue Book figures reported by Cox Automotive.
• Used car prices – In August 2025, they averaged just over $29,000, according to JD Power.
• High interest rates – This results in brutal monthly payments, with over 15% of new car loans exceeding $1,000 a month.

No wonder so many people are holding onto their rides longer instead of trading up. It’s all connected: pricier new cars, tougher loans, and more repairs on aging vehicles result in higher parts and labor costs. You might as well fix what you have because replacing it won’t be cheap either!

What We’re Doing at Our Tempe Auto Repair Shop to Keep Auto Repairs and Maintenance Affordable

At Good Works Auto Repair, we can’t wave a magic wand over global tariffs or labor shortages (we wish), but we’re fighting back where we can.

• Our 5-year/60,000-mile warranty on all major repairs means you’re protected long-term, so no surprise repeat visits.
• New customers: Text NEW10 to 480-771-8821 for 10% off your first visit.
• We offer buy-now-pay-later financing to spread out costs for expensive auto repairs.
• Our free rewards program hooks you up with perks on future services.
• Watch for monthly specials where we offer big savings on specific auto repair or maintenance items.

We’re also big on transparency—our service advisors don’t try to upsell you on unnecessary services, just what your car truly needs. And with free pick-up and drop-off, getting service is hassle-free. That said, we’re at the mercy of rising part prices and labor costs, too—we absorb what we can, but some increases are unavoidable. Our goal? Keep your wallet intact while getting you back on the road safely.

Should You Repair Your Used Vehicle or Buy a New One to Save on Rising Auto Repair Bills?

So, is it time to ditch your trusted sidekick for something new and shiny? You might want to pause and consider a few factors first.

Buying a new vehicle typically costs way more upfront. Plus, with current market conditions, you’re likely to lock in a pricey car loan with a less-than-ideal interest rate.

How about maintaining your current vehicle? It’s typically cheaper to repair your used vehicle vs. buying a new one, especially if you look at the cost over several years. For example, a $1,500 transmission fix pales next to $48,000 for a new SUV (before interest). Plus, with regular preventative maintenance services, like routine oil changes, it’s often possible to catch issues early, saving you even more.

The bottom line is that in this economy, smart maintenance wins. Schedule an appointment with us today and let’s keep your car running affordably—one honest repair at a time.