Auto Body Shops NAICS 811121

Jul 30, 2025 - Auto Body Repair Prices Rising

• Prices for automotive repair services steadily increased throughout 2024 to end the year up 6% - per the US Bureau of Labor Statistics - and so far in 2025 prices have risen 2.2% by May and could go even higher with the Trump administration’s 25% tariff on all imported cars and auto parts. Taking effect in April 2025, steep tariffs on auto parts - including engines, powertrain parts, and electrical components - will increase prices for auto repair and maintenance, according to experts at automotive resource company Edmunds. The problem could be exacerbated if car insurance rates - already historically high - go up even further. Insurance rates are often tied to a vehicle’s repair expenses and replacement cost. If repair costs go up, so will insurance rates to compensate for increased policy payouts.
• Increased passenger vehicle weights and the further integration of automated safety control systems is having an impact on how the auto body repair industry operates, according to industry experts at a recent seminar hosted by the Collision Industry Electronic Commerce Association. Weights are increasing in cars, trucks, and SUVs and added heft generates more force in crashes and causes more damage. The seminar noted a 1995 Ford Ranger weighed 3,200 pounds, while a 2025 model of the same truck weighs 4,000 pounds. Most of the weight gains are attributed mainly to luxury features such as all-wheel drivetrains, turbocharged autos with higher speed, and EVs, which are significantly heavier than gas-powered vehicles. Technology features like automatic emergency braking systems are not reducing the number of collisions, but it is making them less dangerous and less costly to repair.

• High new car prices and tariffs on foreign automobiles and auto parts are causing consumers to increasingly drive their current cars longer. According to S&P Global, the last two years have seen a steady increase in vehicle age, with Americans keeping their cars for 12.8 years on average. Scrappage rates - the percentage of vehicles removed from operation - have held steady despite new vehicle registrations topping 16 million in 2024. Both statistics indicate an aging American fleet on the roads, which is good for auto repair shops and parts manufacturers, but bad news for manufacturers and dealerships. Maintenance demands are expected to soar in the coming years if the trend holds and prices continue to rise. Online automotive resource Edmunds says the average price of a new car is about $47,000, yet almost half of new car buyers want to spend $35,000 or less for a vehicle.
• In an industry faced with several challenges including a technician shortage, regulatory compliance, and rising costs, auto body shops get creative when it comes to expanding their business. Select body shop owners recently told trade publication Autobody News how they are responding to an increasingly dynamic business. Tedious squabbles with insurance companies over reimbursement have some shops dropping aftermarket parts in favor of getting certified by specific OEM manufacturers to repair their vehicles. OEM parts can be more expensive for the consumer, but can be preferred since the parts are specifically designed for a certain vehicle type. Body shops are also increasing transparency about reimbursement interactions with insurance companies so customers can be armed with data for disputes about claim denials. Other strategies include selling repair services to dealers without their own collision repair offerings, and paying for technician certifications and boosting their pay to keep them on staff longer.