How Tariffs Are Impacting Auto Repair Costs (and What Automotive Excellence Is Doing About It)

As a car owner, you may have noticed that the cost of auto repairs and maintenance has been on the rise in recent years. While inflation plays a significant role in driving up prices, there’s another factor at play that isn’t as widely understood – tariffs. At Automotive Excellence of Seal Beach, we want to keep you informed about these changes and assure you that we’re doing everything possible to maintain fair and competitive pricing, even as external costs rise.

Why Are Tariffs Raising Auto Part Prices?

Tariffs are essentially taxes imposed on imported goods this had negative effects on the overall supply chain. When the U.S. government adds a tariff to an auto part, it increases the cost for manufacturers, wholesalers, and, ultimately, auto repair shops like ours. These added costs often have to be passed down the supply chain, resulting in higher prices for customers.

For example, if a critical component like a brake rotor has a 10% tariff, its price jumps immediately by that 10%. This increase is a one-time adjustment, meaning the price doesn’t continue to climb each year due to the tariff itself. In contrast, inflation adds a continuous yearly increase. For instance, if inflation causes a 5% increase annually, that same brake rotor would cost 5% more each year, compounding over time.

Additionally, tariffs can affect a wide range of parts and components, from small items like spark plugs and filters to larger, high-value components like engines, transmissions, and computer modules. This broad impact means that even seemingly minor parts can become more expensive, adding to the overall cost of repairs.

Tariffs vs. Inflation – What’s the Difference?

While both tariffs and inflation can lead to higher prices, they work in fundamentally different ways:

• Tariffs: A one-time cost increase. For example, if a critical engine part costs $200 and receives a 15% tariff, it rises to $230 once. This price remains fixed at this higher level unless another tariff is imposed.
• Inflation: A continuous, compounding cost increase. Using the same $200 engine part example, a 5% annual inflation rate would push the price to $210 in the first year, $220.50 in the second, and so on, creating a much steeper long-term cost curve.

This distinction is important because it highlights that while tariffs can create immediate price shocks, inflation represents a more sustained and cumulative increase in costs over time. This is why it’s critical for both businesses and consumers to understand the difference, as it can significantly impact long-term budgeting and financial planning.

Protect Your Car with Regular Maintenance

While the impact of tariffs can drive up the cost of parts, you can still control some aspects of your vehicle’s long-term expenses. Regular maintenance is one of the best ways to protect your car from unexpected breakdowns and costly repairs. Routine oil changes, brake inspections, tire rotations, and fluid checks can extend the life of critical components, helping you avoid the need for more expensive part replacements down the road.

Keeping up with your maintenance schedule also helps identify smaller issues before they become major problems, potentially saving you hundreds – or even thousands – of dollars over the life of your vehicle.

Schedule Maintenance Online Today or Call Us at 562-493-5477

Avoid Hard Driving to Reduce Wear & Tear

Driving habits can have a significant impact on how often your car needs repairs. Aggressive driving, rapid acceleration, and hard braking can put unnecessary strain on your vehicle’s components, leading to premature wear and tear. By adopting a smoother driving style and avoiding heavy loads whenever possible, you can reduce the stress on your engine, transmission, and suspension – ultimately cutting down on repair costs.

How Automotive Excellence of Seal Beach is Keeping Repairs Affordable

At Automotive Excellence, we understand the challenges our customers face with rising repair costs, and we’re doing everything we can to keep our prices fair. Peter and I have put a system in place with our service advisors to pick up the phone and call different parts providers, searching for the lowest cost on quality parts to pass those savings on to our customers. This includes constantly price-shopping the companies that supply us with inventory parts, fluids, oils, and filters.

Additionally, we are even taking our in-house inventory and price-checking it against platforms like eBay and Amazon to ensure we’re keeping our daily inventory costs as low as possible for our customers. This hands-on approach allows us to provide you with the best possible pricing, even in the face of rising tariffs.

We’re also proud to stand behind our work with an industry-leading 2-year, 24,000-mile warranty, giving you added peace of mind when you trust your vehicle to our care.

We believe in transparency. If you ever have questions about why a particular part or service costs what it does, just ask. We’re here to help you understand where your money is going and how you can get the most value from your vehicle.

Thank you for trusting us with your automotive needs.

Sincerely,

Peter and Andrew