A new set of wheels is already expensive, but where the bills really stack up quick is when repairs and maintenance work must be done.
In 2021, the Automobile Association found that a parts basket of 31 components that must be regularly repaired or replaced – including brake pads, windscreens, and headlights – can account for anywhere from 13.64% up to 71.37% of the price of a new vehicle.
This isn’t counting other, lesser-needed bits and pieces that could carry an even higher premium as they’re in low supply.
Since these comparisons were determined, car part prices have inflated by over 17.11% according to the US Bureau of Labour Statistics, while new vehicle price tags rose by a still staggering but not as aggressive 14.64%.
As such, these components are now more expensive than they have ever been, proving that by the sum of its parts, a car is much pricier than it is as a fully-built-up vehicle.
Why car parts are expensive
The chief reasons for car parts being so pricey include inflation and supply chain disruptions, rising labour costs, a higher portion of used vehicles being on the road, more complex repairs, and an uptick in manufacturer-patented pieces.
In 2020, the world was thrown into chaos by the Covid-19 pandemic which first saw a decline in economic activity, and after several actions were taken by the financial authorities to stim growth, inflation skyrocketed as citizens returned to normality.
However, economies around the world emerged from their own lockdowns in staggered fashions leading to unpredictable delays and waiting times at ports around the globe, and one of the biggest shipping canals in the world being clogged for weeks on end didn’t help.
Throw on top of that a global shortage of several components such as semiconductors, which is only expected to subside towards 2024, and you have a recipe for low supply, big demand, and rising prices at all levels of the product line.
In addition, employees are demanding higher wages to afford the rapid uptick in general living costs, which must be calculated into invoices in one way or another.
At the same time all of this was taking place, used cars became much more sought-after due to limited supply of new models.
Pre-owned vehicles are more prone to needing maintenance and repairs than their undriven counterparts and mechanics and body shops therefore have more limited floor space than before and a requirement to carry more stock.
Rising demand that can’t be met in full generally translates to higher prices, which is compounded by the fact that as technologies progress, the parts themselves as well as the methods of replacing them become more complex.
An affordable 10-year-old car today oftentimes has the first iterations of in-car touchscreens and cameras, compared to an affordable 10-year-old car in 2013, which at most had electric windows and if you’re lucky, parking sensors, and a Bluetooth radio.
These newer additions are more complex to design, manufacture, and repair, which all adds to the bill you get when replacing them when they eventually do stop working.
Tying into this, more manufacturers are patenting their own parts and building the engine specifically for that, forcing owners to install only those into their vehicles.
Manufacturer-approved components that are also patented are priced higher than your third-party pieces due to the higher cost of production, the cost of the licence, and, of course, profit margins.
These factors have all combined to form the perfect pump for ballooning car part prices over the past few years.
Keyword: Buying a new car vs The price of its parts – Why car parts are so expensive