Millions of car owners are delaying maintenance repairs as costs rise

Published On Dec 5, 2024, 7:00 AM

Millions of car owners in the U.S. are postponing routine maintenance and repairs due to rising costs and economic pressures. Over 30 million vehicles are reported to be overdue for essential services like oil changes and tire rotations. Experts note that this trend, referred to as "deferred maintenance," poses risks to vehicle safety and longevity, and has been exacerbated by inflation and high interest rates. The increase in auto loan delinquency rates indicates that many consumers are facing financial strain, making necessary repairs less affordable. As cars age, the likelihood of needing costly repairs increases, further complicating the situation for car owners.

Stock Forecasts

The trend of delayed maintenance in vehicles suggests a potential negative impact on auto repair service companies and suppliers as demand for repair services may decrease temporarily. However, as safety becomes a concern, there might be a future spike in demand for repairs, especially for older vehicles that require more attention.

The broader economic context, including rising loan delinquencies and longer vehicle age, may lead to a decrease in consumer spending on new vehicles. This could strengthen the market positions of established automotive companies that cater to older vehicle owners needing repairs and maintenance.

The situation could benefit aftermarket service providers and parts distributors in the long run as deferred maintenance leads to more significant demand for repairs in the future due to safety concerns and vehicle aging.

Related News

Faltering U.S. industrial leadership has allowed China to take a harder trade stance as President-elect Donald Trump prepares to take office.

General Motors and other foreign automakers are selling fewer cars and losing lots of money in China, where domestic electric and hybrid cars have taken off.

LG Energy Solution will now solely own a factory in Michigan that it had planned to operate through a joint venture with General Motors.