High-tech vehicles are driving up the car repair costs for repair shops and consumers
CNBC
1h ago
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Increasingly complex vehicles are forcing repair shops to invest more in computers, software, and calibration equipment, and repair technicians say that these costs will ultimately be passed on to consumers. AAA, the head of automotive engineering, stated that nowadays the repair of these vehicles "almost always requires a laptop," while the owner of a Brooklyn repair shop, Ralph Czeisler, said that he has to update his computers and software every year, with costs continuously rising.
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Increasingly complex vehicles are forcing repair shops to invest more money in computers, software, and calibration equipment, and mechanics say that these costs are being passed on to consumers.

A car repair technician from Brooklyn, New York, Ralph Czeisler, says that the pace of technological change is so fast that it forces him to invest more time and money even in the most basic repairs, and he has no choice but to pass on these costs to consumers.

“Every year I have to update all my computers,” said Czeisler who manages Emil’s All-Tire in the Gravesend community. “I have multiple computers, corresponding to ‘American models’, ‘Asian models’, and ‘European models’ respectively, and the cost is very high. Every year there are changes, and the amount of money I spend keeps increasing. Moreover, it has become quite challenging.”

AAA, the head of automotive engineering, said that many mechanics across the United States are facing the same problem. Greg Brannon

"The maintenance of these vehicles is now very complex and almost always requires a laptop," he said.

He added that sometimes there is even a need for laptops specifically designed for certain brand vehicles. Repair shops also have to subscribe to software and data services in order to perform repairs, and these services can be purchased for durations ranging from a few hours to a year. For smaller repair shops, it is difficult to absorb these ongoing costs.

Brannon said, 'It is becoming increasingly difficult for independent repair shops to provide services for all brands and vehicle models financially.'

Czeisler said that he would at least pass on a part of those costs to consumers.

"In the end, it is the consumers who suffer, because these costs will also be offset by the cost of money," he said.

Cost increase

According to data from the Federal Reserve Bank of St. Louis, from January 2019 to August 2026, overall maintenance costs increased by approximately 60%. This is nearly twice the inflation rate of 32% during the same period.

These data do not clearly indicate the specific reasons for the price increase. However, research shows that technological progress is contributing to rising costs in at least some cases.

A study in 2023 by AAA found that calibrating advanced driver assistance systems, also known as ADAS, could increase collision repair costs by 37.6%.

For example, in the past, to replace a cracked windshield, one simply needed to order a new piece of glass and install it.

Ralph's daughter, Ariella Czeisler, also works in the store. She said that the cameras behind the windscreen now need to be recalibrated. Depending on the car model, there are at least several cameras installed in the vehicle. She mentioned that these cameras and sensors usually support the various ADAS and active safety features that car manufacturers continue to add.

According to an invoice provided by the store to CNBC, the price of a single calibration device is approximately $28,000. The computer required for use with it costs another $12,000. The entire set of equipment can cost up to $90,000. In addition, target boards for calibrating specific cameras must be installed on the devices. Ariella Czeisler mentioned that among these target boards, those from higher-end brands can cost several hundred or even several thousand dollars each.

"God knows what would have happened if we hadn't calibrated the windshield and that camera had malfunctioned," she said, "The car might have suddenly braked, causing an accident from behind. We don't want to be responsible for that."

"Right of Repair"

As vehicles and other devices become increasingly complex, the "right to repair" movement has also gained more support.

Broadly speaking, the concept is that consumers and small repair shops should have access to the tools, parts, and information needed to repair their own electronic devices, agricultural machinery, cars, etc. Legislators at both state and federal levels have proposed bills aimed at supporting these goals, but the results have been mixed.

Since 2014, industry organizations representing automobile manufacturers and auto repair technicians have been reaching agreements aimed at ensuring that repair shops can access the same data, parts, and tools as large dealerships.

The Brannon of AAA said, "Overall, the information required for repair shops – whether they are dealers or independent repair shops – to repair vehicles is available." However, he also noted that there may indeed be exceptional cases. Repair shops can report issues or concerns about automobile manufacturers to a working group. Brannon stated that the vast majority of complaints are related to the cost and complexity of obtaining data.

Czeisler said that the main problems he faces are usually the cost and hassle of obtaining information, or the cost of upgrading devices to keep computers up-to-date.

Some of the more expensive maintenance tasks are almost as old as the fuel-powered vehicles themselves. For example, during an oil change, Czeisler mentioned that he even had to use a computer to reset the vehicle’s oil change warning light. For a luxury car that usually costs $400, accessing the software cost an additional $75.

“You can’t just reset it directly,” he said, “You have to pay to download the information to your computer, and then upload it to the customer’s computer to reset the indicator light. Otherwise, it will never reset, and that will cost even more money. What’s the result? I end up spending more money, and so do the consumers. That’s not fair. But this has always been the practice in this industry.”

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