Inflation’s Impact on Car Repairs: Why a Warranty is Your Best Friend

1. The Rising Cost of Repairs

Inflation affects various aspects of our lives, and car repairs are no exception. As of August 2023, car maintenance prices had increased by 23% compared to the previous year. Here’s why:

Shortage of Workers and Car Parts: After the UK left the EU in January 2020, issues with car part imports arose due to tariffs, paperwork, and border controls. Additionally, the number of mechanics available to perform repairs dwindled. With over 39 million vehicles in the UK and only 200,000 mechanics, waiting times for repairs have extended, leading to higher labor costs.

Microchip Crisis: Approximately 35% of the cost of a new car is attributed to microchips and semiconductors. During the pandemic, carmakers cancelled orders, causing electronics manufacturers to shift focus away from car chips. When car production resumed, there were no chips available for new cars, leading to a surge in demand for second-hand vehicles. Replacement car parts also require chips, resulting in increased costs and longer waiting times for repairs.

2. The Importance of Car Warranties

Given these challenges, having a warranty becomes essential:

Cost Mitigation: A warranty shields you from unexpected repair expenses. When inflation drives up repair costs, your warranty covers eligible repairs, reducing the financial burden.

Peace of Mind: Knowing that your warranty covers major repairs provides peace of mind. You won’t have to worry about sudden breakdowns or hefty bills.

Extended Coverage: Some warranties extend beyond the manufacturer’s warranty, offering additional protection. Look for warranties that cover wear and tear, electrical components, and more.

3. Choosing the Right Warranty

When considering a warranty, keep the following in mind:

Comprehensive Coverage: Opt for a warranty that covers a wide range of components, including engine, transmission, suspension, and electronics.

Transferability: If you plan to sell your car, choose a warranty that can be transferred to the new owner. It adds value to your vehicle.

Reputable Providers: Research warranty providers and choose one with a solid reputation. Read reviews and understand the terms and conditions.

Conclusion

Inflation impacts car repairs significantly, making a warranty your best friend. It ensures that unexpected repair costs don’t catch you off guard. So, when considering a used car, prioritize vehicles with existing warranties or invest in an extended warranty for peace of mind. Remember, a well-protected car is a happy car on the road!