Kelley Blue Book: Americans are delaying car repairs, and not because they don’t need them

by | Aug 29, 2022 | Stock Market

American car dealerships performed fewer car repairs, and made less money doing it, in July than they did in June. That’s a surprise, and comes after several months in which Americans made fewer repairs but spent more on them. The numbers come from a Cox Automotive analysis of Xtime metrics, which track repairs at car dealerships. (Cox Automotive is the parent company of Kelley Blue Book.)

The volume of repair orders fell 6% during July. That extends an existing trend that has lasted most of 2022. What’s new is that the average cost of repairs also fell, by about $4. That figure now sits 10.5% lower than it did one year ago. Why? Cox Automotive Chief Economist Jonathan Smoke says the problem isn’t lack of demand for repairs — it’s the limited ability to make them. “Technician shortages limit capacity, and at the same time ongoing supply chain issues are impacting the delivery of some parts,” Smoke says. That’s creating wait times for drivers who need repairs. See: Jobs shocker: U.S. adds 528,000 jobs and unemployment falls to pre-pandemic levels Today’s cars last longer than ever. The average car on America’s roads is now 12.2 years old, but they’re also more complex and more expensive to repair. Windshield replacement, for example, is a reasonably affordable repair when windshields are simple glass. …

Article Attribution | Read More at Article Source

Share This