Millions of car owners are delaying car repairs

Millions of car owners are still behind on regular maintenance, with many experts saying this is due to the rising cost of repairs.

More than 30 million vehicles on the road are overdue for both oil changes and tire replacements, according to the latest data from Carfax. The company noted that neglecting such repairs is not only dangerous, but expensive.

For example, Carfax noted that low or dirty oil can cause engine failure, which can lead to expensive repairs. Additionally, skipping tire rotation can cause uneven wear, which can reduce traction and increase the risk of flats or blowouts.

“Cars that are well maintained last longer, cost less to their owners in the long run, and cost more when it’s time to sell,” said Paul Nadjarian, general manager of Carfax Car Care.

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In addition to oil changes and tire changes, owners delay non-essential repairs such as air filter and cabin filter replacements and even electronic repairs, according to Celebrity Motor Cars owner Tom Maoli.

“I think this is all because of the four-year period of inflation and the high interest rate that caused the increase in food prices, insurance costs, housing costs… the consumer can have,” Maoli, his New Jersey salesmen, told FOX Business.

Used cars for sale are displayed at the K & L Auto Expert dealership on May 6, 2022, in Richmond, California. (Photo by Justin Sullivan/Getty Images / Getty Images)

Many people are driving cars they bought during the crisis, when inventory was scarce and car prices rose 20%, pushing their monthly payments to “unsustainable levels,” Maoli said, noting the recent increase in car loans. In September, the Federal Reserve reported that the delinquency rate on auto loans “has risen sharply,” surpassing pre-pandemic levels by the end of 2023. The Fed suggested that one possible reason for this increase in delinquencies, especially on auto loans, is higher every month. payments.

The monthly required payments increased by about $40 to $470 from January 2017 to January 2020. But from January 2020 to January 2023, the average required payments jumped significantly to almost $600.

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“You can only stretch the rubber band so far until it breaks. I think that’s where the consumer is at this point,” said Maoli.

The CEO of Rohrman Automotive Group, Ryan Rohrman, told FOX Business that the shortage of used cars is another factor that makes the situation worse.

Customer demand for cars should be high, but because of issues like COVID-19 and auto part delays, “people are holding on to their cars for a long time,” Rohrman said.

As cars get older, they need more maintenance, which leads to higher costs, he said. The average age of a car on the road has increased to 12.5 years, from 9.5 to 10 years before the pandemic, according to Rohrman.

In addition to oil changes and tire changes, owners delay non-essential repairs such as air filter and cabin filter replacements and even electronic repairs, according to Celebrity Motors owner Tom Maoli. (Kyle Grillot/Bloomberg via Getty Images/Getty Images)

Jared Levy, chief market strategist for Peak American Investment Advisors, said “there is a growing trend of ‘deferred maintenance’ when it comes to American car owners as budgets and free time become increasingly tight.”

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However, he said it is important to consider that there are a number of people who are struggling to repair their cars as usual. They may also take them to smaller dealerships that don’t report data to Carfax.