The car – is there any object more important to your daily life? From driving to work to eating lunch, we spend a significant proportion of our lives inside our vehicles. That means wear and tear.
Maintaining our cars, trucks, and vans through automotive repair is therefore critical to ensure we can get from A to B. Fail to get the proper checks, and you can find yourself stranded by the side of the road.
Which raises the question: how well do Americans look after their vehicles? And what is the current state of the auto repair & maintenance industry? We’ve delved into the facts and figures to reveal everything you need to know, from the average auto repair costs to how often Americans wash their pride and joy.
Let’s get rolling!
Key Insights
- The US general automotive repair industry is predicted to be worth $58.7 billion in 2024, compared to a total industry worth $627 billion (3% of US GDP).
- In 2021, there were nearly 239,100 auto repair and maintenance centers, an increase of just 17,700 establishments since 2010.
- Nationwide, the auto repair industry employs over 590,000 technicians across various disciplines.
- Consumers spend an average of $548.32 fixing their cars in the US.
- The average auto repair cost ranges from $45 to $170 per hour, depending on the location.
- The median annual wage of auto service technician was $47,940 in Dec 2022.
- Two-thirds of Americans don’t trust auto repair shops when it comes to vehicle repairs and maintenance.
- 71% of the auto repair shops are independently owned and operated.
- An average auto repair shop does an annual revenue of $312,000 annually. Professional shops with five plus employees average an yearly revenue of $840,000.
- On average, Auto repair shops have a margin of 15 to 25% on the parts and 40 to 55% on the labor cost.
- 1 in 3 Americans cannot afford unexpected vehicle repairs. A further 20% of households have delayed vehicle maintenance due to monetary concerns.
- Vehicle repair prices rose by 23% year on year in 2023, four times the general inflation rate.
- Approximately 66% of Americans get their car washed 13 times per year. The US contributes 43% of the global total in the car wash market.
- After the initial years’ costs, EV service costs drop 30% compared to gas vehicles at three years, with average maintenance costs for EVs in the first three years being $77 versus $228 for gas vehicles.
- The average age of a US car in 2021 was 12.1 years.
- The demand for auto shop technicians rose from 136,502 in 2020 to 258,000 in 2021. However, the latest reports suggest the decline of new auto shop technicians from 155,578 in 2022 to just over 101,000 in 2026.
Auto Repair Costs and Issues
How many auto shops are there in the US?
It’s hardly a surprise that auto shops dominate in the US. According to Statista, as of 2021, nearly 239,100 auto repair and maintenance centers were dotted across the country – up 2% from the year before. Indeed, despite challenging economic circumstances, the auto repair industry saw substantial growth between 2010 and 2021, adding over 17,700 establishments to their roster.
In fact, such establishments may have benefited from the economic conditions. While the number of vehicles has risen, the average age of vehicles has also increased. That suggests that the automotive repair industry is being fuelled by money-conscious consumers preferring to maintain the old rather than splash out on the new.
How much do automotive shops contribute to the economy?
In 2020, the US automotive industry as a whole contributed 3% of the total US GDP (gross domestic product), or $627 billion. General automotive repair, in particular, comprised a sizable portion of the whole; it is estimated that by 2024, general automotive repair in the US will be around $58.7 billion.
Some sectors within the industry do better than others. For example, the paint and exterior sectors outperform the total revenue generated by the automotive exhaust system repair sector – predicted to be $866.4 million in 2024.
How big is the US auto market?
The US auto market is among the biggest in the world. With over 67% of Americans reporting access to their own car (and a further 19% gaining access through a company or family), the ubiquity of automobiles has been a sign of American prosperity since the end of WWII. Indeed, between 1945 and 1954, the number of registered vehicles increased by 31 million to 59 million – the car has become an integral part of America (and its economy).
However, in recent years, motor vehicle output as a share of GDP has, on average, fallen nearly 12 times more than real GDP during recessions. Moreover, even since the early 2000s, the number of cars relative to drivers has remained steady – though there are still more cars than drivers (1.11).
Collectively, that means that the US auto market isn’t what it was. Its share of GDP during the COVID-19 pandemic was 60% lower than in the late 1960s. Nonetheless, it still accounted for nearly 7% of value-added manufacturing in 2020.
Average repair cost
Inflation is driving up the price of everything. Leaving some money aside for a future car repair is a sensible plan. But how much can you expect to spend?
According to an AAA study, such costs translate to an average of $0.09 per mile, including oil changes, windshield wiper replacements, tire rotations, and more. On an hourly basis, average car repair labor costs range from $45 to $170 per hour. Factors influencing the cost include location, type of shop, mechanics’ skill level, and vehicle make and model.
Car Maintenance by Americans
How much does the average American pay for car maintenance?
That depends on who you ask. Kelly Blue Book estimates that consumers spend an average of $548.32 fixing their cars. Their analysis is based on a database of auto repair and replacement costs. Moreover, prices range from $651 for a Kia Rio to $4,143 for a Chevrolet Bolt EV.
How long does the average American keep their car?
As mentioned, Americans are keeping their cars for longer and longer. In 2021, the average age of a US car hit an all-time high of 12.1 years – the result of a 15-year rise. Alongside this trend, used-car prices are also rising, hitting a 68-year record. The average price of a used car was over $38,000 in mid-2021. In fact, used cars were one of the primary drivers of consumer inflation.
How many Americans wash their cars?
We’ve all seen a white van or car with the words “also available in white” written in the caked-on dirt. Some Americans simply refuse to wash their cars. But what’s the average? Well, 66% of Americans get their car washed 13 times per year – around once per month.
The US is the world’s largest car wash market, contributing 43% of the global total. The nation has over 60,000 car wash establishments, ensuring our cars remain clean and shiny.
Are electric vehicle maintenance costs lower than gas vehicles?
Yes. According to a study published in late 2021, after the initial years’ costs, EV service costs dropped 30% compared to gas vehicles after three years. The study analyzed 65 million repairs and maintenance orders for 13 million vehicles. Based on their findings, the average maintenance costs for EVs in the first three years is $77 versus $228 for gas vehicles.
Automotive Repair Industry Trends and Stats
Largest auto repair companies
Estimates for the largest auto repair companies in the US are hard to come by, especially considering most shops are small-scale. Indeed, the US is a somewhat fragmented market, with the biggest players including Monro Inc., Firestone Complete Auto Care, Jiffy Lube International, Inc., Mida International, LLC, and Meineke Car Care Centers, LLC.
Many of these companies are continuing to expand. Monro, Inc, for example, recently acquired Mountain View Tire & Service, Inc, adding 30 California stores to their western presence. Meanwhile, Jiffy Lube International, Inc supports more than 2,081 franchisee-owned service centers across North America.
Collision repair diagnostics are becoming the industry standard
According to Mitchell, collision repair diagnostics are increasing rapidly as such technology becomes widely available. In 2018, less than 10% of vehicles were scanned following a collision compared to nearly 50% in 2020.
With more than 92% of new US vehicles containing Advanced Driver Assistance Systems (ADAS), completing diagnostic scanning is simpler than ever. Expect the ability to deliver safe and complete repairs to become a key selling point going forwards.
Auto shop technicians are in short supply
Labor shortages are increasingly the norm following the pandemic. That’s especially true in auto repair. TechForce Foundation’s 2021 Supply and Demand Report notes that demand for technicians is outstripping numbers, rising from 136,502 in 2020 to 258,000 in 2021. Moreover, their 2022 report projected a decline in new entrants from 155,578 in 2022 to just over 101,000 in 2026.
Is it getting more expensive to repair damaged vehicles?
Yes. As automakers incorporate ever more technology into their vehicles, repairs are rising in tandem. More vehicle complexity requires more complex machinery to evaluate, diagnose, and mend the problem. Vehicle scans and calibration, for instance, added $66 and $27 per claim, respectively.
Government data is clear, motor vehicle repair prices rose 23% year on year in 2023 – four times the rate of general inflation. High prices are attributable to pandemic-related supply bottlenecks and a shortage of workers.
References:
- https://www.statista.com/statistics/436416/number-of-auto-repair-and-maintenance-shops-in-us/
- https://www.americanautomakers.org/sites/default/files/AAPC%20ECR%20Q3%202020.pdf
- https://www.statista.com/forecasts/409844/general-automotive-repair-revenue-in-the-us
- https://www.statista.com/forecasts/409842/automotive-exhaust-system-repair-revenue-in-the-us
- https://www.cargroup.org/wp-content/uploads/2017/02/CONTRIBUTION-OF-THE-AUTOMOTIVE-INDUSTRY-TO-THE-ECONOMIES-OF-ALL-FIFTY-STATES-AND-THE-UNITED-STATES.pdf
- https://www.pewresearch.org/short-reads/2013/07/01/data-show-a-dent-in-americans-love-for-cars/
- https://www2.deloitte.com/us/en/insights/economy/spotlight/automobile-impact-us-economy.html/
- https://www.kbb.com/car-advice/average-vehicle-repair-costs/
- https://newsroom.aaa.com/wp-content/uploads/2020/12/Your-Driving-Costs-2020-Fact-Sheet-FINAL-12-9-20-2.pdf
- https://mechanicbase.com/market/auto-repair-labor-rates-per-hour/
- https://news.ihsmarkit.com/prviewer/release_only/id/4759502
- https://www.businessinsider.com/how-much-used-car-prices-jumped-may-strange-recovery-chart-2021-6?r=US&IR=T
- https://www.reportlinker.com/p06075833/U-S-Car-Wash-Service-Market-Size-Share-Trends-Analysis-Report-By-Type-And-Segment-Forecasts.html?utm_source=GNW
- https://www.databridgemarketresearch.com/reports/global-car-wash-market
- https://cleantechnica.com/2021/11/02/ev-maintenance-costs-are-30-lower-than-gas-vehicles-at-3-years-new-study-finds/
- https://www.mitchell.com/insights/auto-physical-damage/article/cracking-code-what-dtcs-tell-us-about-vehicle-repair-trends
- https://techforce.org/techforce-releases-the-2021-technician-supply-demand-report/
- https://techforce.org/supply-demand-report/
- https://www.bls.gov/news.release/cpi.t02.htm
