Cars are getting more expensive as time goes by, and a new report from the German Insurance Association suggests that the same applies at an even higher degree to spare parts, as their prices have increased by a rather hefty 44 percent since 2013.
The market for spare parts is described as a “quasi-monopoly”, which means that the small number of large suppliers involved don’t have incentives of lowering prices as there’s not a lot of competition between them.
Auto manufacturers have patented the exterior design of their models making it very hard for third-party companies to produce cheaper alternatives. Thus, workshops and individuals are forced to buy genuine components from the manufacturer at a set price.
Read Also: Are New Cars More Expensive Than In Your Dad’s Day?
As reported by Automobilwoche, the German Insurance Association claims that prices rose by an average of six percent each year, with a radiator grille costing nine percent more. This might not sound so dramatic but this trend is ongoing, making a big difference in repair costs.
Between 2013 and 2021, prices of spare car parts in Germany rose by an average of 44 percent, while inflation during the same period was rated at 13 percent. More specifically, a trunk lid became 60 percent more expensive while a taillight got a 67 percent markup in the last eight years.
Additionally, according to the German Insurance Association the average cost of damage in cars for insurance companies was €3,100 ($3,586) in 2020, which is €700 ($810) more than in 2013.
