Arizona Drivers Face Higher-than-Average Car Repair Costs Compared to Rest of U.S.

As the cost of new cars continues to rise, many consumers are turning to the used car market. However, the decision to purchase a used vehicle often comes with additional expenses, particularly in the realm of car repairs.

Photo byCNBC

A recent study conducted by NetCredit has revealed that drivers in Arizona face an additional cost burden when it comes to automotive repairs, paying approximately 5.32% more than the national average.

This analysis, which examined car repair costs across the United States, sheds light on the states where drivers bear the highest premiums for such services. [Source: NetCredit Study]

Arizona's standing in this comparison underscores a nationwide trend of escalating car repair expenses. Over the past year, repair costs have surged by 20%, a rate exceeding six times the inflation rate. Consequently, insurance rates have also climbed, with a 17% increase observed in the 12 months leading up to May 2023. By December of that year, the average repair bill in the U.S. had soared to $392.90, marking a $100 jump over a five-year period.

The root of this issue can be traced back to the showroom, where the soaring prices of new cars are driving consumers towards the used car market. However, older vehicles typically necessitate more frequent repairs, creating a demand surge at auto repair facilities. On the other hand, newer car models may require extensive repairs following accidents, owing to the complexity of their safety features and intricate systems that demand specialized attention.

Photo byNetCredit

Geography also plays a significant role in car repair costs, with location often impacting the expenses incurred. In fact, the disparity in repair costs between cities can be substantial, potentially offsetting recent price hikes by seeking repairs in more affordable locales.

NetCredit's comprehensive analysis extends to every state and major city in the U.S., offering insights into the varying price premiums for car repairs. Key findings from the study include:

• San Francisco ranks as the city with the highest premium for car repairs compared to the national average, with an increase of approximately 21.92%.
• Conversely, Amarillo, Texas, stands out as the city with the lowest premium for car repairs, boasting a reduction of around 19.54%.
• In terms of states, California emerges as the leader in premium car repair costs, with an increase of approximately 12.17%.
• Conversely, West Virginia claims the title of the state with the lowest premium for car repairs, experiencing a reduction of about 1%.

Photo byRyan Meeks

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