Will Tariffs Make Repairing Cars More Expensive?

Smart Canadians know that it's just not the purchase price that goes into budgeting when shopping for a new or used car. Additional expenses like gas or electricity, parking, and insurance must be included to stay on budget. 

Another cost frequently neglected in budgets is the amount spent on operating a car. Depending on the vehicle's make, model, age, how you drive, and the frequency of repairs needed, the average annual operating costs in Canada can range from a low of $500 for a new car to $2,000 by the time the vehicle becomes 10 years old.

So, while many car shoppers are already grappling with increased car prices, will the recently introduced global trade tariffs also make repairing cars more expensive?

Tariffs on specific car parts, such as engines, transmissions, and electronic components, will generally make repairing cars more expensive. Even before the tariffs were implemented, a significant portion of any vehicle maintenance or repair bill comes from the costs of the parts. 

If you are getting your car fixed, it will likely have a part from another country. The modern global supply chain depends significantly on international trade, with tariffs adding to the cost of those imports. Unfortunately, these price hikes will likely be passed directly to car owners, but not for all drivers. It depends on the vehicle, the specific parts required for the maintenance or repair, and where you go to get the work done.

To mitigate the anticipated price increase for auto parts, consider seeking a reputable independent repair shop rather than your car dealer. Manufacturer guidelines typically do not apply to these shops, and they often have the expertise and experience to handle a wider range of repair options, especially for older or non-luxury vehicles. By choosing these independent shops, you can find cost-effective solutions that better suit your budget than an automaker's franchise dealer repair shop.

"The makes that we specialize in are all European, so a lot of our parts are coming out of Asia or the European Union, and as such, our parts prices are not going to be adversely affected too much with the new tariffs," said Bela Csombok Jr. at Young Street Garage, a family-owned repair shop in Ottawa, Ont., that specializes in import brands, like Audi, BMW, Mercedes-Benz, Mini, and Volvo since 1976. 

"However, if we need to source some parts from the United States, we will be hit with a price increase."

Potential for Stockpiling Parts

Most of the car industry has been aware that the U.S. government had a high probability of implementing trade tariffs since December 2024 and was already grappling with the impact of new steel and aluminum levies. So, it's no surprise that some repair shops and dealerships may have hoarded parts before the tariffs came into effect. 

However, it's important to note that stockpiling parts is not a long-term solution and may not be feasible for all repair shops without the resources to add inventory before it is needed. Spending money on unnecessary parts can be risky for smaller businesses, especially when these on-again, off-again tariff threats raise questions about how long they will last.

For example, Young Street Garage limited their stockpiling to "fast-moving parts," like oil and air filters. Otherwise, they bring in parts as needed, reducing the risk of investing in excess inventory. "For the most part, it's just-in-time ordering; we bring in what we require," said Csombok Jr.

Used Car Prices

Used cars often have to be serviced before dealerships can sell them back to customers, again opening the door for higher repair costs due to tariffs. 

Dealers that sell used cars may need to increase prices to cover the higher parts costs in servicing and preparing vehicles for resale.

If Tariffs Remain, Car Repairs Will Go Up

Suppose you've had to take your car in for repair over the last few years. In that case, prices have been increasing, mainly due to growing labour costs and more expensive components needed for vehicles with advanced technology. Implementing these trade tariffs will worsen the problem, leaving parts distributors with no choice but to raise prices to stay in business.

The best advice for car owners needing to maintain or repair their cars is to find a business that’s upfront about their pricing. By choosing a transparent repair shop, you can be reassured that you are not being taken advantage of and can have confidence in the services you are receiving.