How to Lower Car Repair Costs

By the Mercury Team

Just like groceries and gas, car repair costs are on the rise, which can make budgeting for unexpected repairs a challenge. However, there are ways to keep these expenses at bay and minimize costly surprises. In this guide, we’ll explain what’s driving auto repair costs and offer tips on how you can reduce these expenses.

Why Are Car Repair Costs Rising?

If you’ve noticed that car repairs are more expensive than they used to be, there are a few factors driving these price hikes:

• Inflation: The price of car parts, labor, and even the equipment mechanics use has increased, pushing repair bills higher. In fact, According to the latest Consumer Price Index data, the cost of motor vehicle maintenance and repair has increased by 5.91% over the past year.
• Supply chain issues: Remember those pandemic-era shortages? They’re still affecting car repairs. Manufacturing slowdowns, shipping delays, and disruptions in the supply chain have made it harder to get car parts, which means longer wait times and higher costs. If a mechanic has to special-order a part, you could be looking at an even bigger bill.
• Labor shortage: There’s a growing shortage of skilled auto technicians, and that’s driving up labor costs. In fact, The U.S. Bureau of Labor Statistics projects an average of 67,800 openings for automotive service technicians and mechanics each year through 2033. Fewer mechanics mean shops have to pay higher wages to attract and keep good workers. That extra cost is often passed on to customers in the form of higher repair bills.

Also, one of the biggest ways drivers unintentionally increase their repair costs is by skipping routine maintenance. Ignoring small issues—like an overdue oil change or worn-out brake pads—can lead to much bigger (and costlier) problems down the road.

Knowing average auto maintenance costs helps you budget effectively and avoid unexpected financial stress. According to the American Automobile Association (AAA), you’ll pay around 9.68 cents per mile for maintenance and repairs on average. If you drive 15,000 miles a year, that adds up to about $1,452 annually—a cost you can plan for with the right approach.

How to Lower Car Repair Costs

Car repairs can be expensive, but the good news is there are plenty of ways to keep costs under control. Here are some steps to help you save money and keep your car running smoothly:

1. Follow a Preventative Maintenance Schedule

One of the best ways to avoid costly repairs is to stay on top of routine maintenance. Taking care of small issues before they turn into big problems can save you hundreds—or even thousands—of dollars down the road. Here are some key things to keep in mind:

• Oil changes: Oil changes are essential for engine health since they lubricate all the engine’s moving parts. Refer to your owner’s manual for the manufacturer’s recommendations on oil change intervals. The average cost ranges from $35 to $75, depending on the type of oil used.
• Tire rotations: Rotating your tires every 5,000 to 7,500 miles promotes even wear and extends tire life. This service typically costs between $20 and $50.
• Brake inspections: Regular brake checks can identify wear before it leads to more serious issues. They usually cost anywhere between $50 to $120, but some service centers offer free brake inspections, especially if you’re getting other services done.

2. Compare Repair Shop Prices Before Committing

Not all repair shops charge the same prices, and some may try to upsell you on services you don’t actually need. Doing a little research before choosing a mechanic can save you a lot of money. Here are some tips to keep in mind:

• Compare prices: Dealership service centers often charge more than independent mechanics. Getting quotes from multiple shops can help you find the best deal.
• Look for reviews and recommendations: Websites like Yelp, Google Reviews, and even recommendations from friends can help you find a trustworthy mechanic.
• Beware of unnecessary upsells: Some shops may try to convince you to replace parts that are still in good condition. If you’re unsure about a suggested repair, ask to see the issue firsthand or get a second opinion.

3. Learn Basic DIY Car Maintenance

You don’t have to be a mechanic to handle some of the simpler car maintenance tasks yourself. Learning a few basic DIY fixes can save you hundreds of dollars every year, particularly changing your cabin air filter, replacing wiper blades, and checking and topping off fluids (e.g., engine oil, coolant, etc.). YouTube is an excellent resource to learn how to do these tasks for your specific car type.

4. Know When to Repair vs. Replace Your Car

At some point, you may face a repair that costs so much that it makes more sense to buy a new car instead. So, how long should you keep your current car?

For one, If your mechanic gives you an estimate for a repair that’s 50% or more of your car’s market value, replacing the vehicle might be the smarter financial move. Plus, if your car is spending more time in the repair shop than on the road, the ongoing costs (and hassle) might not be worth it.

How Auto Insurance Can Help Reduce Repair Costs

Having a comprehensive auto insurance policy means you’re better protected against unexpected repair costs resulting from accidents, theft, or natural disasters. Here’s how specific coverages can help:

• Collision protection: Pays for repairs to your vehicle if it’s damaged in a collision, regardless of fault.
• Comprehensive coverage: Covers non-collision-related incidents, such as theft, vandalism, or natural disasters.
• Uninsured/underinsured motorist coverage: Protects you if you’re involved in an accident with a driver who lacks adequate insurance.

Additionally, you can take advantage of various auto insurance discounts—such as multi-policy, multi-car, and good driver discounts—to make your car insurance premium more affordable.

Finding Affordable Repair Options and Payment Plans

If you’re facing a repair bill that’s too high to pay all at once, there are several financing options that can help you spread out the cost.

• Payment plan through repair shops: Many auto repair shops offer financing or payment plans to make repairs more affordable. Some even have 0% interest financing if you pay within a set time frame. Before committing, ask the shop about interest rates (if any), monthly payment amounts, and any fees or penalties for late payments.
• Credit cards with 0% APR offers: Some credit cards come with a 0% introductory annual percentage rate (APR) for a set period (typically 6 to 21 months). If you qualify for one of these cards, you can charge the repair and pay it off interest-free over time. However, Make sure you pay off the balance before the intro period ends to avoid high interest rates.
• Personal loans: If a payment plan or credit card isn’t an option, you might consider a personal loan. Many banks and online lenders offer loans specifically for auto repairs, with fixed interest rates and set repayment terms.

Another way to protect yourself from expensive repairs is by investing in an extended warranty, which can help protect you from costly repairs after your manufacturer’s warranty expires. If your car is known for reliability, you may not need one, but if you plan to keep your vehicle for many years or worry about affording unexpected repairs, it could provide peace of mind.

Conclusion

Although external factors such as inflation, supply chain disruptions, and rising labor costs have made car repairs more expensive, there are still plenty of ways to keep your expenses under control, like keeping up with preventative maintenance and handling simple fixes yourself. Additionally, choosing the right auto insurance policy can help offset repair expenses and provide valuable savings through discounts and coverage options.

If you’re looking for cheap auto insurance, Mercury offers competitive rates and valuable discounts to help lower your overall vehicle ownership costs.

Contact us today for a fast, free quote!