EZ Auto Spa’s mission is to help everyone to take care of their vehicles to get the longest lifespan & most value from what is likely your 2nd most expensive investment. If you’re curious about the current auto repair industry statistics, learning about the work behind the scenes will give you a lot of insight into your maintenance routine.
Top 2023 Auto Repair Industry Statistics
- There are almost 240,000 auto repair companies in the United States.
- Over 600,000 employees work in the auto repair industry.
- The average hourly wage for auto repair employees is $20.
- The global auto repair industry market share was about $750 billion in 2021.
- The top 10% of auto repair shops earn 80% of the industry revenue.
- The most common auto maintenance is oil and filter work.
- The most expensive auto repair is replacing an engine.
- The average age of cars on the road is 12 years.
- Repairs associated with a check engine light average $387.
- The average annual cost of owning a new car is $9,282 in the United States.
Read on for more current statistics regarding the auto repair industry.
Overall Auto Repair Industry Statistics
If any of those top ten statistics surprised you, you’ll love learning more details about these 2023 auto repair industry statistics. Find out more about the employees who work on your vehicle, what they make, and what are some of the most common—or most expensive—repairs.
There are almost 240,000 auto repair companies in the United States.
In this country alone, there are 239,100 auto repair companies. The industry has a compound annual growth rate (CAGR) of 7% by 2030, so there will continue to be plenty of options when you need repairs on your vehicle.
Over 600,000 employees work in the auto repair industry.
With almost 240,000 repair companies in the United States, you’d expect there to be a lot of mechanics in the field. In fact, there are about 614,433 auto repair employees handling a variety of duties, including regular maintenance and major auto body repairs and upgrades.
The average hourly wage for auto repair employees is $20.
The national minimum wage will rise to $9.50 an hour in 2023, but auto repair employees make an average of $20 hourly. This figure will vary based on their special focus, but it’s easy to see that such specialized knowledge deserves a higher pay rate. With this wage, the average mechanic can make $40,000 annually.
The global auto repair industry market share was about $750 billion in 2021.
The worldwide auto repair industry market share is just over $750 billion in 2021, with over $93 billion of that money coming from the United States industry. With about 240,000 auto repair companies, it’s easy to see how so much of that revenue could come from America alone.
The top 10% of auto repair shops earn 80% of the industry revenue.
Since the top 10% of auto repair shops earn 80% of that $750 billion, it’s easy to see how this is a profitable industry for those shops that provide reliable service and have loyal customers. There are many reliable brand names in the auto repair industry that can make a lot of money with maintenance and repairs.
The most common auto maintenance is oil and filter work.
The most common maintenance an auto repair employee does is change the oil and filters in a vehicle. Oil maintenance keeps your car running smoothly, which is why mechanics used to recommend you change it every 3,000 miles. However, with new advances in auto technology, you can wait between 7,500 to 10,000 miles between oil changes.
The most expensive auto repair is replacing an engine.
The engine is the main aspect of your car, so it’s no surprise that it’s also the most expensive task. You need an expert to handle an engine replacement, so you’ll pay for their labor in addition to the part. You can end up paying anywhere from $5,000 to $20,000 to replace an engine.
The average age of cars on the road is 12 years.
New cars are expensive because they require a lot of materials and work to produce. Newer cars also use more technology than previous models, so people pay more for an efficient vehicle. With that cost in mind, it’s easy to understand that the average age of a car on the road is 12 years because many people can’t afford a newer model.
The average annual cost of owning a new car is $9,282 in the United States.
After paying a high price for a new car, you’ll have to keep putting money into your vehicle. Initial maintenance and repairs are more expensive for new cars. Insurance companies also charge higher rates for new vehicles, bringing the average annual cost for a new car over $9,000.
Conversely, a five-year-old car will cost much less annually before prices go up slightly for older cars that require more repairs.
Repairs associated with a check engine light average $387.
If you see that check engine light come on, you might feel tempted to ignore it. However, it can signal a serious issue, with the average repairs associated with this alert totaling almost $400.
A car battery lasts for up to five years.
A car battery typically lasts an average of five years, while some can last six and others die after two years. If your car isn’t performing up to standard, check the battery—it’s a relatively quick and affordable fix compared to other repairs.
About 75% of auto repair shops are independently-owned.
You can probably think of some big names in the auto repair industry, but those brands only make up 25% of the field. About 75% of shops are independently-owned, meaning you can patronize your local mechanic for quality, affordable repairs instead of overpaying to a franchise.
62% of drivers take their cars to independent repair shops instead of the dealership.
The lower cost and more personalized service from an independent repair shop make them the obvious choice for about 62% of drivers. The other 38% take their car to the dealership, even though they likely pay more for the same service.
80% of Americans get regular service for their vehicles.
With so many cars on the road, it’s nice to know that about 80% of Americans get regular service for their vehicles. Routine maintenance keeps your car in good shape, protecting you and keeping everyone else on the road safer.
35% of Americans can’t afford unexpected car expenses.
It’s worth fitting regular maintenance into your budget because unexpected car expenses can break the bank. In fact, about 35% of Americans can’t afford car repairs because they’re so pricey.
56% of drivers choose auto repair shops that offer financing options.
Since it’s hard to afford car expenses, about 56% of drivers will look for an auto repair shop that offers financing options. They’ll have more flexibility to pay off the repair costs while still having a car to drive.
57% of auto repair shops recycle.
Many people associate the auto repair industry with waste, but 57% of auto repair shops recycle used oil, batteries, and tires. This process keeps costs low and is environmentally friendly.
Final Thoughts on Auto Repair Industry Statistics
Depending on how well you know the auto repair industry, many of these facts were likely surprising to read. They cover behind the scenes as well as the habits of car owners. The statistics show that most drivers prefer supporting independently-owned repair shops to get regular maintenance on their vehicles to prolong its life and ensure safety for all passengers.
The auto repair industry will continue to grow as more people buy cars and keep them for a longer time. Even as electric cars come onto the scene, the auto repair industry will pivot to ensure they keep their customers safe.