Repair costs at record levels

Repair costs at record levels

The insurance and customer loyalty specialist CarGarantie analyzes around one million expired warranty contracts for new and used cars from all European markets every year to determine the average repair costs for damage subject to warranty. In 2024, at €718, these were once again higher than the record increase in the previous year, which reached the level of €657. Once again this year, the engine is responsible for the most expensive damage. When it comes to used cars, its share increases slightly compared to the previous year to 26% (previous year: 25.9%). The fuel system including turbocharger follows in second place with 17.7% (previous year: 17.6%), and in third place is the electrical system with 12.9% (previous year: 13.4%). A similar picture emerges with new cars: Here the engine is still responsible for 18.4% of repair costs (previous year: 20.4%), followed by the electrical system with 17.8% (previous year: 14.7%) and the fuel system with 15.5% (previous year: 17.1%, second place).

Electrics and electronics remain vulnerable

The electrical system will continue to be the most vulnerable component in 2024. For used cars, it is responsible for more than a fifth of the damage at 21.5% (previous year: 22.1%). The fuel system and the engine follow with 18.2% (previous year: 17.7%) and 13.5% (previous year: 14.0%). For new cars, the electrical system even makes a small jump in the frequency of damage, rising to 26.1% (previous year: 22.2%). Within two years, the vulnerability of the electrical system has increased from just over a fifth (2022: 20.2%) to more than a quarter. The comfort electrics are also responsible for slightly more damage in new cars at 14.9% (previous year: 14.2%) and are therefore in second place in 2024, followed by the fuel system at 12.9% (previous year: 15.1%). There are only a few changes in the statistics as to when damage occurs: in 2024, 27.1% of damage to used cars occurred within the first 5,000 km. In the previous year it was 27.6%. 21.0% of the damage only occurred after more than 25,000 km (previous year: 21.2%). The occurrence of damage after days is almost identical: As in the previous year, 25.8% of damage to used cars only occurred after more than 360 days.

Prognosis has come true

Marcus Söldner, CEO of CarGarantie, comments on the development: "The majority of decision-makers in the automotive industry expected a price increase for workshop services. We had also already predicted that the increase would continue. This forecast has come true, and to a significant extent: last year we recorded a price jump of around 40 euros, this year the increase was even higher at over 60 euros. There are currently no signs that the peak has already been reached: the situation of International trade and the numerous crises lead to fears of further increases. Guarantee and repair cost insurance is therefore more important than ever for both retailers and end customers.