"Today’s auto industry is navigating unprecedented economic turbulence,” said Kyle Krumlauf, director of industry analytics at CCC. (3 min. read)
Daily News
Sep 25, 2025
A newly released study shows that tariffs, consumer financial strain, and the growing complexity of vehicle technology are piling pressure onto “interconnected” facets of the auto industry.
The details: The report by cloud platform CCC Intelligent Solutions, titled Crash Course, highlights how supply chain disruption and other factors are converging to create a “supply chain reaction” that is reshaping strategies for automakers, suppliers, insurers, and repairers.
Average part prices (flat from 2022 to 2023) rose more than 4% year over year in March and April 2025.
Average total cost of repair (TCOR) exceeded $4,730 in 2024, up 3.8% YoY, with an additional 1.4% rise in the first half of 2025. Labor rates also increased 3.1% YoY.
The most common insurance deductible of $500 has fallen 6 percentage points since 2021, while $1,000 deductibles have climbed nearly 5 points.
Worth noting: More than 70% of total vehicle losses in 2024 involved cars seven years or older, with Q1 2025 showing a 1-point increase year over year—reflecting both an aging U.S. car fleet and declining used-vehicle values, according to CCC Intelligent Solutions, based on its analysis of 300 million claims-related transactions.
Why it matters: As repair costs climb, the dealership becomes the customer’s first call for clarity: is the car worth fixing, what’s the real bill, and how fast can it be back on the road? Managing this shift well can offset softer front-end grosses and position the dealership as the rare operator that helps customers navigate complexity instead of being buried by it.
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Zooming in: Diagnostics and calibrations, a central component of fixed operations, are up with extended cycle times.
Nearly 87% of direct repair program (DRP) appraisals included a scan in Q1 2025, with just over 32% including a calibration—up from nearly 24% in 2024.
Repairs requiring multiple calibrations averaged over 17 days from vehicle-in to vehicle-out, compared with 15.5 days for single calibrations and 13 days for repairs with none.
What they’re saying: “Today’s auto industry is navigating unprecedented economic turbulence – from pricing pressures to sourcing challenges to household financial strain,” said Kyle Krumlauf, director of industry analytics at CCC and co-author of Crash Course. “These forces are converging in ways that represent not just cyclical pressures, but a structural shift.”
Bottom line: The auto industry is entering a new phase where interconnected financial, technological, and supply chain pressures are no longer temporary disruptions—they’re creating a lasting reset in how vehicles are built, insured, repaired, and sustained.
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Daily News
Sep 25, 2025
Daily News
Sep 25, 2025
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