Nov 5, 2024
As the technology in new vehicles becomes increasingly sophisticated, local repair shops, like Ted's Auto Clinic in Chicago, owned by brothers George and Chris Geropoulos, face mounting financial and logistical barriers to repairing modern cars.
The auto repair shop, opened by their father in 1982, is increasingly unable to service newer cars, which often require a special scanner and a subscription service to access the car's computer to perform diagnostics and make repairs.
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“It’s one of those things. As time goes by, we have to focus on more cars we can actually service and turn away work on a lot of the ones we cannot. A lot of the reasons we cannot service a car is because of financial constraints,” George told Fox 32 reporters.
These scanner subscription tools, he reports, can cost between $65 and $40,000 per year, depending on the car type. These tools prevent hackers from accessing the car's computer and exploiting vulnerabilities.
But it appears — thanks to the expense — that they’re also preventing some mechanics from being able to service certain vehicles. Here's why that could be bad news for consumers.
How hackers have changed car repair services
In 2015, Andy Greenberg was driving a Jeep Cherokee when hackers took over his vehicle. They blasted the air conditioning, cranked the music, and even blurred the windshield with wiper fluid. Then, they cut the transmission, leaving the Cherokee stopped in the middle of the interstate with cars lining up behind it. Greenberg was the victim of a zero-day exploit that allowed hackers to access multiple systems in his vehicle.
Luckily for him, the hack was expected — he was a willing participant, allowing hackers Charlie Miller and Chris Valasek to show how these exploits could be used to disable vehicles. Since then, car manufacturers have made drastic changes to how car mechanics can access car computers. New cars now feature “gateway computers” — secure systems that manage everything from the vehicle’s engine to safety features and prevent unauthorized access.
These gateways require costly tools and software to access, which often come with steep subscription fees. Independent shops must purchase the initial scan tools — the Geropoulos’ universal tool ran them between $4,000 to $5,000, and it works on multiple types of cars.
However, not all tools work with all brands, which means mechanic shops may have to invest in more than one tool. This not only starts to get expensive for shops, it also limits the number of vehicles they can work with. Shops then have to invest time and money to train their techs on how to use the equipment.
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Finally, they then have to pay subscription fees to use the tools.
The cars with these gateways are all fairly new — usually those sold after 2017. According to Fox 32, which spoke to several consumer automotive experts, the cars with gateways include Chrysler, Jeep, Ram, Dodge, and Nissan vehicles, with Hyundai and Kia to be next.
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The dealership may soon be the only option for car repair
Soon, repair shops like the ones owned by the Geropoulos brothers may only be able to fix a small number of cars.
“I believe right now there are a lot of shops, especially small shops, that these are newer issues for them,” Jeff Cox, President of the Automotive & Maintenance Repair Association, told Fox 32 reporters. “They don’t have the right equipment. They don’t have those certifications. So oftentimes, they are turning customers back to the dealer.”
If you’re one of many consumers forced to head to the dealership for repairs, you’ll likely feel it in your wallet. While the cost difference varies by vehicle, repair, and location, dealer rates can cost $30 or more per hour than the same repair at an independent shop, according to Edmunds. Repairs to modern cars can also take longer due to the complex nature of the systems, which may lead to higher repair costs.
As automotive technology advances, there is a real risk that independent automotive shops will continue to shrink in number, limiting consumers' options. To address these challenges, recent legislation like the Repair Act aims to ensure consumers have direct access to car data related to repairing their vehicles. Advocates argue that without legislative limits, dealerships may gain a near monopoly in car repairs.
While legislation may eventually level the playing field, for now, new car owners should brace for a world where car repairs — like movies, music, and software — come with a subscription price.
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Danielle is a personal finance writer whose work has appeared in publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love. She’s especially passionate about helping families and kids learn smart money habits early.
