Average car repair cost shoots past €700
CarGarantie's latest annual claims analysis has revealed a significant increase in car repair costs, with the average now reaching €718. This marks a new high, surpassing the €700 threshold for the very first time. The data clearly indicates a rapid acceleration in the expense associated with vehicle repairs. Indeed, it was only a short time ago, specifically in the year 2022, that the average repair price initially climbed above the €600 mark. This recent surge further underscores the escalating financial burden faced by car owners. According to Dr. Markus Söldner, the CEO of CarGarantie, there is little indication that this upward trend is about to reverse or stabilize. In his assessment, "There are no signs the peak has been reached," suggesting that car repair costs may continue to climb even higher in the foreseeable future. The €718 average, therefore, represents a potentially concerning landmark for vehicle owners and the automotive repair industry alike.
Every year, Germany-based insurance and warranty specialist CarGarantie analyzes around one million expired warranty contracts for new and used cars from all over Europe.
The idea is to find out the average cost of repairs for damage that is covered by the warranty. In just one year, the price of car repairs has gone up by €61. That’s a new record – breaking previous year’s record.
Settlement amount
As before, the engine is responsible for the most expensive claims in used cars, responsible for 26% of the cost (25.9% in the previous year). Second-most expensive is the fuel system, including the turbocharger (17.7%, previous year: 17.6%), followed by the electrical system (12.9%, previously 13.4%).
The cost picture for new cars is largely similar, with the engine responsible for 18.4% of repair costs (20.4% in the previous year), followed by the electrical system (17.8%, previously 14.7%), and the fuel system (15.5%, previously 17.1%, and in second place).
Claims frequency
For used cars, the electrical system remains the most susceptible component, responsible for 21.5% of breakdowns in used cars (previous year: 22.1%), followed by the fuel system (18.2%, previously 17.7M%) and the engine (13.5%, previously 14%).
In new cars, the frequency of claims for the electrical system jumped from just over a fifth (20.2%) in 2022 over 22.2% in 2023 to more than a quarter (26.1%) for the most recent year. In second place are comfort electrics (14.9%, up from 14.2%), followed by the fuel system (12.9%, down from 15.1%).
Time of damage
Last year, 27.6% of the damage to used cars occurred in the first 5,000 km (up from 27.1% the previous year), while 21% of the damage occurred after 25,000 km (21.1% in the previous year).
In terms of time, most (25.8%) of the damage to used cars occurred only after more than 360 days.
“The increase in average repair costs is not unexpected”, says Dr Marcus Söldner, CEO of CarGarantie. “Last year we already saw a price increase of around €40, and this year the increase was even higher, at over €60. At the moment, there are no signs that the peak has already been reached: the situation of international trade and the numerous crises give rise to fears of further increases”.
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