Vehicle repair costs increased by an average of 60 percent from January 2019 through August 2026, according to figures from the Federal Reserve Bank of St. Louis. That rise was nearly twice the 32 percent increase in the cost of living recorded over the same period.

The report links much of the added expense to the growing amount of technology in modern vehicles. Repairs that once required conventional tools increasingly involve computers, diagnostic equipment, and brand-specific software subscriptions.

Diagnostic software adds to repair bills

Brooklyn mechanic Ralph Czeisler told CNBC that his shop needs multiple computers to work on domestic, Asian, and European vehicles. The associated software is often available through subscriptions ranging from several hours to several years, while regular updates can create additional costs.

Those expenses can be especially difficult for smaller repair businesses to absorb. Czeisler said that repair shops are passing some of the costs on to customers as equipment, software, and access requirements become more expensive.

The added charges can apply to routine maintenance as well. An oil change may carry as much as $75 in additional fees when software access is needed to reset the vehicle’s service interval.

ADAS technology increases collision repair costs

More advanced systems can create even larger bills. A 2023 study by the Automotive Association of America found that collision repair costs had risen by 37.6 percent.

Windshield replacement provides one example. In addition to installing the glass, a repair shop may need to recalibrate a camera mounted behind the windshield for an advanced driver assistance system. Czeisler said the calibration equipment cost $28,000, while the required computer added another $12,000. Model-specific target boards can add further expense.

ADAS work also brings potential liability concerns if a system is repaired incorrectly or fails to operate as intended. Earlier this year, General Motors warned against using anything other than new, genuine parts for ADAS repairs on Chevrolet, Buick, GMC, and Cadillac vehicles. The automaker said used or reconditioned components were strictly prohibited for those repairs.

Information access has not addressed repair costs

Automakers and independent mechanics have worked since 2014 on agreements intended to give smaller repair shops access to the information and tools needed to service modern vehicles. However, those arrangements do not eliminate the expenses involved in obtaining equipment or limit what manufacturers can charge for software and technical access.

As vehicle systems become more dependent on specialized technology, those costs continue to affect both repair businesses and the drivers who rely on them.