Repair Shop Trends Amidst a Challenging Consumer Environment

The current automotive economy is a challenging one for the U.S. consumer:

• New vehicle prices reached $50,000 in 2025 and remain elevated – average price in January 2026 was $49,191 (Nerd Wallet/Cox Automotive)
• On average, consumers are financing $43,759 for a new vehicle – this translates to a monthly payment of $800, and one-in-five pays $1,000/month. In fact, 21% of loans are 84 months or longer. This means a lot of new car owners will be making monthly payments for several years outside the warranty period. (Washington Post/Cox Automotive)
• Average vehicle age has ticked up incrementally over the years – from 9.6 years in January 2002 to 12.8 years in 2025. (S&P Global Mobility)

As charted below, consumer intent (indexed to 100 as of October 2021) to purchase a new car remains low:

Source: Deloitte  

Since vehicle owners continue to take their vehicle to a repair shop, we engaged Hanover Research for the second iteration of our Repair Shop Study – an online survey of than 500 aftermarket professionals nationwide – to provide visibility into how these consumer realities are playing out on the shop floor, and what they signal for the broader automotive market.

Rising Costs Meet Cautious Optimism

The high cost of parts, equipment, and technology is the single greatest challenge facing repair shops. 

Q: Which of the following are the greatest challenges your shop currently faces? Select all that apply.
Hanover Research: Repair shop study – Wave 2, March 2026

The industry remains cautiously optimistic, though – more than half of shops expect positive performance over the next three years and believe the overall repair market will remain strong. This optimism reflects enduring consumer demand. Americans still depend on personal vehicles, and as long as they keep them longer, the need for quality, accessible repair will only grow.

Q: Which of the following best describes your expectations for the overall business climate of automotive repair shops in general over the next three (3) years?

Hanover Research: Repair shop study – Wave 2, March 2026

Parts Decisions Reflect Consumer Cost Pressures

New OEM parts remain widely used, but aftermarket and remanufactured parts play a critical role in keeping repairs affordable – this is important as shops remain responsive to consumer sensitivity around repair costs.

Lower cost, better availability, and customer preference are the leading reasons shops choose non-OEM options. Importantly, these decisions are often driven by consumer demand for choice—not by quality concerns. Many consumers want options that balance price, warranty, and performance, especially as vehicles age.

Q: For which of the following reasons do you use aftermarket, remanufactured, or used parts? Select all that apply.
Hanover Research: Repair shop study – Wave 2, March 2026

Programming, Calibration, and the Software-Defined Vehicle

Data Access Remains a Consumer Issue—Not Just an Industry One

Q: For vehicles serviced at your independent automobile service/repair shop that are no longer covered by the manufacturer’s warranty, what percentage present challenges in accessing data or codes during diagnosis or repair?Hanover Research: Repair shop study – Wave 2, March 2026

Labor Constraints Shape the Customer Experience 

While technology dominates much of the conversation, the human side of repair remains just as important. Finding and retaining skilled technicians continues to be one of the industry’s biggest challenges and one that consumers experience through longer wait times, limited appointment availability, and reduced service capacity.

Shops report longer training requirements, increased specialization, and difficulty hiring qualified technicians. In response, many recruit only when a vacancy arises rather than proactively building talent pipelines.

• Consumers are keeping vehicles longer and relying more heavily on the aftermarket.
• Out-of-pocket repair costs are rising as warranty coverage declines.
• Technology and data access increasingly shape where and how vehicles can be repaired.
• Workforce and technology investments directly affect service speed and quality.