With the rising cost of new cars, many Americans are turning to the used car market. However, used cars often come with higher expenses because driver often have to pay for car repairs.

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And a new study found that drivers in Arizona pay +5.32% above the national average for automotive repairs.

That’s according to NetCredit who analyzed the cost of car repairs around the U.S. to identify which states pay the highest premiums for car repairs: https://www.netcredit.com/blog/car-repair-costs-by-state/

Here’s how Arizona compares to the rest of the U.S.:

Press Kit_The U.S. States and Cities that Pay the Biggest Premium for Car Repairs

And to add insult to injury, car repair costs have risen significantly in recent months — climbing 20% year-over-year, which is over six times the rate of inflation. Naturally, insurance rates have followed, rising 17% in the 12 months through May 2023. By December, the average repair bill in the U.S. reached $392.90, a leap of $100 in just five years.

The issue begins in the showroom: the rising price of new cars has encouraged Americans to buy used, if at all. Older cars require more repairs, which creates a supply-and-demand funnel at auto repair shops. Meanwhile, newer cars can require more drastic surgery after a crash due to the complexity of their safety features and sophisticated systems that require specialized attention.

But these aren’t the only variables affecting car repair costs. Geography is another factor. In fact, you could more than cancel out these recent price rises by taking your damaged vehicle from one of America’s most expensive cities for repair to one of its cheapest. So, NetCredit has calculated the price premium for car repairs in every state and major U.S. city.

Key Findings

  • San Francisco is the U.S. city with the highest premium for car repairs compared to the national average (+21.92%).
  • Amarillo, Texas, is the city with the lowest premium for car repairs (-19.54%).
  • California is the state with the highest premium for car repairs (+12.17%).
  • West Virginia is the state with the lowest premium for car repairs (-18.97%).