TAMPA, Fla. — Independent auto repair shops are cashing in on the spiking prices of new cars.
In the past six months, new car prices have soared by 20% to 30%, which is making people think twice about buying new.
What You Need To Know
- New car prices have soared by 20% to 30% in the past six months
- Independent auto repair shops are cashing in on rising prices of new cars
- More people are keeping their used cars, choosing to get them fixed
Some buyers are now priced out of buying a new car altogether.
But people still need to drive in Florida, a state that lacks public transportation like other parts of the country.
That means more people are ditching the new car smell and keeping their used cars, choosing to get them fixed.
“It’s ramping up. We are seeing a lot of vehicles in the past, I would say 6 months, where, even the past year, where cars have been, lets say, sitting for a year,” said Ray Rosado, owner of Cross Creek Auto in New Tampa. “Customers are actually bringing cars in and telling us, ‘I haven’t driven this car in a year. Can you please look it over? I need it.’”
Spectrum Bay News 9’s Jason Lanning visited Cross Creek Auto this week as mechanics were working to install a new engine in a 2011 Cadillac Escalade.
A brand new Escalade would have cost the family more than $100,000.
The price for a new engine: $10,000.
“Covid came and pretty much just changed everyone’s habit, way of thinking,” said Rosado. “And I think they are getting away from purchasing the new vehicle. Especially in today’s market, where it’s hard to even buy a car.”
Independent shops took a hit during pandemic lockdowns, but even before that suffered losses of 30-40% after the 2015-16 new car buying boom.
With those cars and other warranties now expiring, independent shops are reaping the benefits.
Cross Creek Auto says it has not seen many issues with supply chain shortages for new parts.
Like many other independent shops, it relies on parts from Napa and other local suppliers.
And so far, big suppliers have not experienced shortages with most common car parts.