May 22, 2024

5 Reasons Why Vehicle Repairs Cost More Than They Should

No industry is perfect, and automotive repair has its drawbacks as well. We listed some reasons why the vehicle repair industry might be inefficient and lead to a situation where repairs take longer, cost more, and generate frustration for both customers, repair shops and related parties like insurers. 

  1. Wrong repair methods 

Many repair shops replace car parts that could be repaired, whether it is at the clients’ request, insurers’ request, or their own call. This practice means increased spending and higher CO2 emissions, as it involves using more new parts that could have been avoided. For example, windshield repair prices start from 40€ while replacing prices start from 250€. Repairing a windshield emits a few kilograms of CO2, while replacing one emits 20+ kilograms. 

  1. High cost of parts

High-quality replacement parts are often very expensive, especially for newer or high-end vehicles. The trend towards more integrated and unique parts makes this problem worse, as parts that could have been repaired before now need to be completely replaced, greatly increasing costs. For example, some manufacturers have regulations stating that certain parts, if damaged in any way, need to be replaced. These might include parts with sensors or cameras. Also, finding some type of parts quickly can be challenging. 

  1. Labour costs 

Vehicle repair industry is facing labour shortages. This means that the repair shops are forced to offer competitive salaries and benefits to attract and keep talent. These higher labour costs contribute to higher repair prices and overspending.

  1. Customer service expectations 

To stay competitive, repair shops invest heavily in customer service enhancements. This can mean anything from building luxurious waiting areas to offering digital services for clients. Although these benefits are crucial for customer retention and satisfaction, they also increase the operational costs of the repair shops.

  1. Economic fluctuations 

The cost of materials, parts (and also labour) can vary due to economic conditions such as inflation or supply chain disruptions. These fluctuations can mean unpredictable increases in expenses, making it challenging for repair shops to manage their budgets effectively and contributing to overspending in the industry.

On a more positive note, there are a few things that can be done to decrease the overspending (for repair shops, but also for their clients and insurers as well). A lot of manual tasks can be automated – this includes vehicle visual inspection, documenting the vehicle condition and sourcing parts for repairs. 

Automating vehicle inspection and the documentation of the state of the vehicle enables employees to focus on more value-adding activities and also decreases the need for extra labour. A smart documentation allows employees to easily find and review any vehicle, any time. This also speeds up the whole repair process and potentially increases the customer satisfaction. High cost of parts can be soothed with smart repair parts sourcing that doesn’t need a human touch and again, leaves more valuable time to the employees.

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