14Mar
Rising living costs in 2025 are reshaping how individuals approach car maintenance, particularly in Australia, the United States, and Canada.
As inflation and economic pressures mount, many are forced to prioritize essential expenses, often at the expense of optimal vehicle upkeep. This shift has significant implications not just for auto longevity but also road safety and insurance claims, making it a topic of growing relevance.
The 2025 Compare the Market car maintenance survey sheds light on these changing habits.
The survey, which analyzed responses from over 3,000 participants across the three countries, reveals that Australians spend an average of AU$1,205 annually on car maintenance, while Americans and Canadians spend slightly more, at AU$1,754 (US$1,088) and AU$1,778 (CA$1,586), respectively.
See also:
15 Most Expensive Cars To Maintain
The motor vehicle engine and parts repair industry in Australia is valued at approximately AU$15.7 billion in 2025, with a slight decline of 0.5% compared to the previous year.
Rising inflation and stagnant wages have led many Australians to prioritize actual repairs and cut back on non-essential vehicle services. Workshops specializing in luxury vehicles or electric vehicle (EV) repairs are gaining traction due to their ability to cater to niche markets.
In the United States, the average annual cost of vehicle maintenance and repair in the is estimated at US$1,424, based on data from 2023. Basic services, such as oil changes and minor inspections, typically cost between US$95 and US$237, while more extensive repairs can range from US$296 to US$474.
America’s aging vehicle fleet, with an average age of 12.5 years, is driving increased demand for maintenance services. The auto mechanics industry in Canada is valued at CA$11.6 billion as of 2024, with a projected growth trend in the coming years.
Rising costs for passenger vehicle parts, maintenance, and repairs are reflected in the Consumer Price Index, which reached an all-time high in January 2025. Ontario and Quebec have the highest concentration of auto mechanics, supported by large urban populations and higher vehicle ownership rates.
These insights highlight the economic and regional factors influencing car maintenance habits in these countries. Despite these expenditures, a notable proportion of respondents admitted to delaying or skipping maintenance due to financial constraints.
For instance, nearly a quarter of participants across all three nations reported servicing their vehicles less frequently, and about 4% have stopped servicing and cleaning their cars altogether. The survey also highlights cultural and behavioral differences in car maintenance practices.
Australians, for example, are more likely to adhere to manufacturer-recommended service schedules compared to their North American counterparts. In contrast, a higher percentage of Americans and Canadians only service their vehicles when issues arise or when they can afford it.
Cleaning habits also vary, with most respondents cleaning their cars monthly or weekly, though some admitted to neglecting this task entirely. These findings spotlight the broader impact of economic pressures on daily life and raise concerns about potential risks.
Avoiding regular maintenance not only jeopardizes vehicle safety but can also void insurance claims, as emphasized by experts in the survey. This serves as a stark reminder of the importance of balancing financial priorities with the need for responsible car ownership.
The Rising Cost of Living and Its Impact on Car Owners
Photo Credit: Ibrahim Rifath/Unsplash.
In 2025, rising living costs continue to strain household budgets in Australia, the United States, and Canada, with inflation, fuel prices, and economic pressures playing pivotal roles. While inflation rates have moderated compared to previous years, they remain a concern, with Australia at 2.4%, the US at 3.0%, and Canada at 1.9%.
These figures, though lower than peak levels, still impact purchasing power and household spending. Fuel prices have also seen fluctuations, with Australians paying approximately AUD 1.61 per liter, Americans around USD 1.12 per liter, and Canadians about CAD 1.12 per liter.
These costs, influenced by global oil markets and domestic policies, add to the financial burden of car ownership, particularly for those reliant on personal vehicles for daily commutes.
Economic pressures, including high borrowing costs and stagnant wage growth, further exacerbate the situation. In Australia, households face challenges like mortgage stress and limited disposable income.
Similarly, in the US, elevated interest rates and housing costs strain budgets, while in Canada, rising costs for goods and services weigh heavily on families.
The Trade War Of 2025
The ongoing trade war, particularly between major economies like the US and China, could exacerbate the financial strain on car owners in Australia, the US, and Canada.
Tariffs on essential materials such as steel and aluminum have already driven up production costs for automakers, with steel prices surging by 50% in recent years. These increased costs are often passed on to consumers, leading to higher vehicle prices and repair expenses.
Supply chain disruptions caused by trade barriers further complicate the situation. Automakers are forced to seek alternative suppliers or absorb additional costs, which can delay the availability of parts and increase their prices. For car owners, this means longer wait times for repairs and higher maintenance bills.
See also:
How to Reset Maintenance Light on Toyota Camry: A Comprehensive Guide
In addition, the uncertainty surrounding trade policies discourages investment in the automotive sector, particularly in research and development for cost-saving technologies. This stagnation could slow the adoption of electric vehicles and other innovations that might reduce long-term maintenance costs for consumers.
For households already grappling with inflation and rising living costs, these trade war-induced challenges could push car-related expenses even further down the priority list. This trend not only jeopardizes vehicle safety and longevity but also underscores the broader economic impact of geopolitical tensions on everyday life.
These factors collectively force many to reassess their spending priorities. Car-related expenses, such as maintenance and fuel, are often among the first to be reduced. Addressing these issues requires coordinated efforts to stabilize trade relations and mitigate their ripple effects on consumers.
Changes in Car Maintenance Habits
Photo Credit: Klodiusz Petrozieck/ Unsplash.
The rising cost of living has significantly altered car maintenance habits, with many vehicle owners adapting their approaches to cope with financial pressures.
These changes are evident in three key areas: delaying or skipping regular servicing, an increase in DIY maintenance, and a shift from dealerships to independent mechanics.
Delaying or Skipping Regular Servicing
A growing number of car owners are postponing routine maintenance due to financial constraints. Surveys indicate that 64% of drivers are currently delaying some form of vehicle maintenance. Another survey found around 7.9% of car owners report delaying routine maintenance, with cost and time being the primary reasons.
Among these, owners of older vehicles (8+ years) and Millennials are more likely to postpone services. The average age of passenger vehicles in the US increased to 12.5 years in 2023, leading to higher maintenance needs as older cars require more frequent repairs.
Commonly postponed tasks include oil changes, tire rotations, and brake inspections, with cost and time being the primary barriers. However, skipping essential services can lead to severe consequences.
Neglecting regular oil changes, for instance, accelerates engine wear and reduces fuel efficiency. Similarly, ignoring brake inspections increases the risk of accidents due to compromised stopping power. These risks not only jeopardize safety but also result in higher long-term repair costs.
Increase in DIY Maintenance
Photo Credit: Ryking Uploads/Unsplash.
To save money, many car owners are turning to DIY maintenance. A 2024 survey revealed that 78% of consumers have undertaken at least one DIY auto repair in the past three years. A mere 25% of DIYers conduct research before purchasing parts for repairs.
Popular tasks include oil changes, tire rotations, and brake pad replacements. While DIY repairs can be cost-effective, they come with risks.
Improperly performed maintenance may lead to further damage or safety hazards, such as brake failure or uneven tire wear. Additionally, the lack of professional oversight can result in overlooked issues that escalate over time.
Shifting from Dealerships to Independent Mechanic
Photo Credit: Pixabay.
According to Consumer Affairs, vehicle maintenance and repair costs in the United States rose by 6.5% in 2023, with basic services like oil changes costing between $95 and $237, and major repairs ranging from $296 to $474.
Independent repair shops handle 75% of aftermarket vehicle repairs, offering more affordable options compared to dealerships. The high cost of dealership services has driven many consumers to opt for independent repair shops.
Dealerships often charge premium rates due to overhead costs and the use of original equipment manufacturer (OEM) parts. In contrast, independent mechanics offer more affordable services, with flexibility in using aftermarket parts that meet quality standards.
This shift reflects consumer preferences for cost-effectiveness over manufacturer-specific expertise.
However, dealerships remain the preferred choice for complex repairs requiring specialized knowledge. Summarily, economic pressures are reshaping car maintenance habits, with drivers delaying servicing, embracing DIY repairs, and seeking cost-effective alternatives to dealerships.
While these adaptations help manage immediate financial strain, they underscore the importance of balancing affordability with safety and long-term vehicle health.
Car Cleaning and Maintenance Trends
Photo Credit: Eric Mdean/ Unsplash.
Budget constraints in 2025 have significantly influenced car cleaning and detailing habits, as households prioritize essential expenses over non-urgent vehicle care.
Professional detailing, once a regular practice for many car owners, has seen a decline, with frequency reduced to annual visits or eliminated altogether. This shift is largely driven by rising costs for professional services, prompting car owners to opt for more affordable do-it-yourself cleaning methods or delay maintenance entirely.
Regular exterior washing remains a priority for those concerned about maintaining their vehicle's appearance and resale value, but comprehensive detailing has become a luxury for many. Regional differences highlight varying priorities in car maintenance.
In Australia, exposure to intense sunlight and coastal environments leads many to invest in UV-resistant coatings and protective waxing despite financial pressures.
In the United States, urban drivers focus on combating pollution and road grime, while rural residents emphasize cleaning undercarriages to remove mud and debris from unpaved roads. In Canada, harsh winters and road salt demand frequent washing to prevent rust and corrosion, especially in provinces with significant snowfall.
These trends reveal a clear trade-off between financial constraints and vehicle upkeep, with regional environments further shaping habits. Striking a balance between affordability and effective car care is crucial to preserving vehicle longevity and safety.
See also:
How The Lamborghini Terzo Millennio Achieve Self-Healing Superpower
The Hidden Costs of Skipping Car Maintenance
Deferring car maintenance may seem like a cost-saving measure in the short term, but it can lead to significantly higher expenses over time. Skipping essential services, such as oil changes, brake inspections, or tire rotations, accelerates wear and tear on critical components.
For example, neglecting oil changes can cause sludge buildup, reducing engine efficiency and ultimately leading to costly repairs or a complete engine replacement.
Similarly, worn-out brakes or misaligned tires can escalate minor issues into major safety hazards. Prolonged neglect also shortens the vehicle’s overall lifespan. Components left unchecked deteriorate faster, pushing the car closer to premature breakdown.
This not only reduces the vehicle's functional life but also diminishes its resale value.
Buyers typically demand a full service history when purchasing used cars, and gaps in maintenance records can result in significant devaluation. Additionally, skipping maintenance can cause insurance complications.
Many policies include clauses requiring owners to maintain their vehicles in a roadworthy condition. If an accident occurs and is found to be linked to neglected maintenance—such as worn brakes or tires—claims may be denied, leaving owners to bear the financial burden.
Strategies for Managing Car Maintenance Costs
Photo Credit: Tim Mossholder/Unsplash.
Managing car maintenance costs effectively requires a mix of strategic planning, practical habits, and leveraging available incentives.
Here are some tips and best practices to help you budget and prioritize essential car services without compromising safety:
Create a Maintenance Fund: Set aside a small amount monthly into a dedicated car maintenance fund. This proactive approach ensures you’re financially prepared for unexpected repairs or routine services.
Stick to the Manufacturer’s Schedule: Following your car’s maintenance schedule prevents costly breakdowns. Research shows that adhering to recommended service intervals can reduce repair costs by up to 25%.
DIY Basics: Learn simple tasks like oil changes, air filter replacements, and tire rotations. Online tutorials and guides make these tasks accessible, saving you labor costs while keeping your car in good shape.
Shop Around for Services: Compare prices at local mechanics, dealerships, and independent shops. Independent mechanics often offer quality services at lower rates, especially for routine tasks.
Use High-Quality Parts: While cheaper parts may seem appealing, investing in durable, high-quality components reduces the frequency of replacements and long-term costs.
Monitor Driving Habits: Avoid aggressive driving, which accelerates wear and tear. Smooth acceleration and braking improve fuel efficiency and extend the life of your car’s components.
Government and Insurance Incentives: Some governments offer tax credits or rebates for eco-friendly maintenance practices, such as using energy-efficient parts or converting to alternative fuels. Additionally, many insurance providers offer discounts for maintaining a clean service record or installing safety features.
These strategies help you manage car maintenance costs effectively while ensuring your vehicle remains safe and reliable. For specific incentives, check with local government programs or your insurance provider for details on available discounts or rebates.
Comments