Study: Vehicle repair costs up 40% in five years
The cost of vehicle repairs rose by 40% between 2018 and 2022, according to an analysis of warranty claims paid over five years by Intelligent Motoring.
According to the study of 12,000 claims from the warranty provider, costs climbed the most between 2018 and 2019, with average claim costs growing by 19%. The period 2020 to 2021 saw a further 10% increase. Looking just at the period between July and December last year, the average cost of warranty claims increased by 37%.
According Intelligent Motoring CEO Duncan McClure Fisher, repair costs started to climb after the Brexit referendum in June 2016: “Without doubt the majority were unprepared for the knock COVID-19 inflicted on the automotive sector. But the industry had been facing challenges even before the pandemic hit, meaning COVID-19 was simply another element that deepened those difficulties.”
Duncan added: “The resulting financial impact on motorists is significant and has been made worse by wider pressures including rising inflation and the overall increased cost of living.”