TAMPA, Fla. — Independent auto repair shops are taking advantage of soaring new car prices.
Over the past six months, new car prices have shot up 20-30%, making people think twice about buying new.
What do you want to know
- New car prices have soared 20-30% in the past six months
- Independent auto repair shops benefit from rising new car prices
- More and more people are keeping their used cars and choosing to have them repaired
Some buyers are now totally excluded from buying a new car.
But people still have to drive in Florida, a state that lacks public transportation like other parts of the country.
This means that more and more people are ditching the smell of new cars and keeping their used cars, opting to have them repaired.
“It’s getting stronger. We see a lot of vehicles in the past, I would say 6 months, where even last year where the cars have been, say, sitting for a year,” said Ray Rosado, owner of Cross Creek Auto in New Tampa. . “Customers bring cars and say to us, ‘I haven’t driven this car in a year. Can you please look at it? I need it.'”
Spectrum Bay News 9’s Jason Lanning visited Cross Creek Auto this week as mechanics worked on installing a new engine in a 2011 Cadillac Escalade.
A brand new Escalade would have cost the family more than $100,000.
The price of a new engine: $10,000.
“Covid came in and pretty much changed everyone’s habits and way of thinking,” Rosado said. “And I think they’re moving away from buying the new vehicle. Especially in today’s market, where it’s hard to even buy a car.
Independent stores were hit during the pandemic shutdowns, but even before that they suffered losses of 30-40% after the boom in new car purchases in 2015-2016.
As these cars and other warranties expire, independent stores are reaping the benefits.
Cross Creek Auto says it hasn’t seen many issues with supply chain shortages for new parts.
Like many other independent stores, it relies on parts from Napa and other local suppliers.
And so far, major suppliers have not experienced a shortage of the most common auto parts.