Auto Finance News Podcast11 Elo 2025

Podcast: Vehicle repair costs up 43% since 2019, Synchrony says

Amid sustained inflation, more high-tech vehicles in the market and tariff-induced uncertainty, aftermarket repair costs are steadily climbing.

Vehicle repair costs are up 43% since 2019 to an average of up to $1,700 per visit, according to data provided to Auto Finance News by lender Synchrony Financial.

Three factors contributed to the rise, Keith Mait, automotive, oil and gas business leader for Synchrony, told AFN:

Vehicles are more complex with more expensive technology;
Customers keep their vehicles longer; and
Repair shops struggle to find talent.

With longer ownership of vehicles, more repairs are inevitable, he said. While customers are willing to get emergency repairs, many aren’t willing to pay for preventative maintenance.

“Consumers are likely to opt in to the kinds of services that get them back on the road faster and safer,” he said. “They may not immediately agree to do the work that might be proactive.”

Synchrony’s Car Care Credit Card breaks those larger payments into smaller monthly installments, Mait said.

Tariffs to worsen expenses

In a June survey of 1,000 Synchrony’s card holders, just half said they could afford an unexpected expense of $1,000, Mait said.

“The primary word that keeps getting used is ‘anxiety,’” he said. “Consumers are anxious about not necessarily knowing how this is all going to play out.”

The rise in consumer uncertainty comes amid broader inflation and tariff-induced concerns, Mait said. Because parts for repairs are sourced globally, tariffs could “have a major influence on the cost.”

“[Consumers] need to maintain a proactive mindset toward vehicle health,” he said. “If they’re not under warranty anymore, they need to be mindful of the expenses that are coming their way.”

Tune in to “Weekly Wrap” to hear Mait’s conversation with AFN Associate Editor Aidan Bush.

Tämä jakso on lisätty Podme-palveluun avoimen RSS-syötteen kautta eikä se ole Podmen omaa tuotantoa. Siksi jakso saattaa sisältää mainontaa.

Jaksot(335)

Chase Auto head of pricing, credit strategy says granular decisioning key

Auto lenders must strengthen fraud controls, improve operational processes and lean more into precise, data-based decision-making as they look toward 2027, Manish Chhabra, head of auto pricing and cre...

15 Syys 12min

GM Financial's Kyle Birch reflects on captive build-out, career ahead of retirement

Communication is key to GM Financial's continued success under new leadership, according to retiring GM Financial President of North America Operations Kyle Birch. "There'll always be challenges for l...

19 Elo 18min

Arivo Acceptance eyes increased auto ABS cadence

The auto asset-backed securitization market remains resilient as a funding outlet for many issuers and originators. “It's an important source of capital for us,” Michael Gustafson, chief financial of...

10 Elo 19min

Ally Financial, Capital One, Huntington Bank auto originations mixed

Ally Financial, Capital One and Huntington Bank posted mixed results in the second quarter for auto originations and credit performance. Ally Financial’s auto originations rose 20.9% year over year i...

27 Heinä 7min

Wells Fargo Auto, Chase Auto originations jump in Q2

National and regional bank second-quarter earnings point to mixed performance as larger banks lean into auto production while regional banks held steady or scaled back amid market volatility. Wells F...

20 Heinä 6min

Subaru Motors Finance to target first-time buyers, expand credit access

Subaru Motors Finance plans to expand its underwriting to attract more first-time buyers, Managing Director Michael Cottone tells Auto Finance News in the latest episode of “The Auto Finance Roadmap P...

13 Heinä 23min

BMW Financial’s lease penetration normalizes post-EV tax credit

BMW Financial Services’ lease penetration has normalized following the elimination of the federal electric vehicle tax credit, says Ole Jensen, chief executive and president of the captive in North Am...

6 Heinä 23min

Rising insurance costs add to affordability woes

Car buyers are facing a tough market as rising insurance costs add to vehicle ownership expenses and lenders are mindful of high loan-to-value ratios. The national six-month auto insurance premium ro...

29 Kesä 11min