Business owners are facing a crisis when it comes to car repairs. Small auto repair businesses, once the backbone of local car maintenance, are now under significant threat due to rising costs, restrictive subscription-based software, and the increasingly complex technology in modern vehicles, according to MSN reports. This trend is forcing many owners of independent repair shops to turn away jobs, leaving consumers with fewer affordable options for vehicle repair. Keeping that mom and pop shop alive is becoming more difficult than ever, according to FOX32 Chicago. Jeff Cox, President of the Automotive & Maintenance Repair Association, says that small car repair shops “don’t have the right equipment. They don’t have those certifications. So oftentimes, they are turning customers back to the dealer.” For consumers in the future, the only place to get your car repaired might also be the most expensive: at the dealership.

Modern cars, run by computers and artificial intelligence, require advanced tools in order to access and repair internal processes. The need for proprietary tools came to the forefront after a Jeep Cherokee was purposely hacked by security experts Charlie Miller and Chris Valasek. Andy Greenberg, a writer for Wired, was behind the wheel when the 2015 Jeep’s systems were instantaneously disrupted: the brakes quit working, the radio blasted at full volume, the windshield wipers went on, and the accelerator did not respond. Crashed in a ditch on the side of the road, Greenberg described the experiment as “not fun.” After the hack, the need for advanced and secure systems was obvious. However, the implications for small business owners were not. New cars now feature “gateway computers” — secure systems that manage everything from the vehicle’s engine to safety features, preventing unauthorized access. Fixing a car’s systems requires special tools to enter the gateway.

Why Car Repair Shops Are Struggling

1. Expensive Diagnostic Tools – Modern cars, particularly luxury brands like Audi and BMW, rely on proprietary systems for diagnostics and repairs. These systems often require costly subscription-based software, which small businesses can hardly afford. For example, advanced tools for calibrating sensors or reprogramming key systems can run into tens of thousands of dollars annually. Subscription scanner tools can cost as much as $40,000 per year, according to MSN – and different brands require different tools.
2. Anti-Competitive Practices – Car manufacturers are increasingly restricting access to repair data, funneling customers toward dealership services. These practices not only disadvantage independent shops but also drive up repair costs for consumers. When repair options are limited to dealerships, simple repairs like brake replacements or software updates for high-end vehicles can cost two to three times more than at independent garages.
3. Financial Constraints: Small shop owners often operate on tight margins. With the added burden of pricey technology, they may be unable to compete. Many business owners are forced to make difficult choices: scale back their services, absorb the costs, or close their doors entirely. For some, they are already refusing work.

How Consumers Are Going to Suffer

For vehicle owners, this troubling trend has significant consequences:

• Higher Repair Costs: Taking an Audi to a dealership for a simple oil change or brake service can cost hundreds of dollars more than at a mom-and-pop shop. Before you say, “That’s why I drive an Altima!” consider that many brands (including Nissan) are forcing repair shops to invest in scanning tools that cost as much as $5,000 each – and luxury brands aren’t the only ones with proprietary tech.
• Reduced Accessibility: Rural or suburban areas, where independent shops are the primary option, will be disproportionately affected.
• Longer Wait Times: Fewer independent shops mean higher demand at dealerships, resulting in extended repair timelines.

The disappearance of independent auto repair shops is a growing concern, not just for business owners but for consumers as well. Without intervention, consumers will face fewer choices and higher costs for car repairs, especially complex ones, as a result of non-competitive practices. Supporting local car repair shops and advocating for fairer practices is essential to preserving this critical sector.