7 mins read 
Key takeaways
- Auto parts tariffs can raise costs for some replacement parts.
- Many vehicles use globally sourced parts, even if they’re assembled in the U.S.
- Routine maintenance may help you avoid larger repair bills later.
- Refinancing won’t make repairs cheaper, but it may lower your monthly payment if you qualify.
- Before replacing your car, compare repair costs, loan balance, insurance and the cost of a new payment.
Car maintenance has always been part of owning a vehicle. But when auto parts get more expensive, skipping basic upkeep can become a bigger financial risk.
A 25% tariff on certain imported automobile parts took effect May 3, 2025, according to U.S. Customs and Border Protection. That doesn’t mean every repair will jump by 25%, but it can put pressure on the cost of replacement parts, especially when a repair depends on globally sourced components.
Why tariffs can make car repairs more expensive
Modern vehicles are built from parts sourced across the world. Engines, transmissions, electrical components, sensors and other key parts may come from different countries before they end up in your car.
When tariffs apply to imported auto parts, the added cost can move through the supply chain. Repair shops, dealerships and parts suppliers may eventually pass some of that cost to drivers.
Repair costs were already elevated before tariffs became a bigger concern. The Bureau of Labor Statistics’ motor vehicle maintenance and repair price index remains high, with FRED tracking the series through April 2026. AAA also estimated that maintenance, repair and tire costs averaged 11.04 cents per mile in its 2025 driving-cost analysis.
Why maintenance matters more now
Maintenance will not prevent every repair. But it can help reduce the odds that a small issue turns into a major bill.
For example:
- Worn brake pads are usually cheaper to fix than damaged rotors or calipers.
- Low oil can lead to engine damage.
- Bad tire alignment can shorten tire life.
- Ignoring warning lights can make a repair more complicated.
- Skipping fluid checks can lead to overheating, transmission issues or brake problems.
The goal is simple: spend a little on prevention so you’re less likely to face a large repair when parts may cost more.
Car maintenance checklist to help avoid bigger bills
Start with the basics:
- Oil changes: Follow your owner’s manual. Many cars need oil changes every 5,000 to 7,500 miles, but your vehicle may be different.
- Brake checks: Don’t ignore squeaking, grinding or a soft brake pedal.
- Tire rotation and alignment: This can help tires wear evenly and last longer.
- Battery test: A weak battery can leave you stranded, especially in extreme heat or cold.
- Fluid checks: Keep an eye on coolant, brake fluid, transmission fluid and windshield washer fluid.
- Warning lights: Get them checked early instead of waiting for the problem to get worse.
- Maintenance records: Keep receipts and service history. They may help with resale value or future refinance decisions.
Should you repair your car or replace it?
If your car needs work, don’t decide based only on the repair estimate. Compare the repair cost to the full cost of replacing the vehicle.
Ask yourself:
- How much is the repair?
- How much is the car worth?
- How much do you still owe on the loan?
- Would a replacement car mean a higher monthly payment?
- Would insurance cost more on the next car?
- Is the current car likely to stay reliable after the repair?
If the repair is affordable and the car is otherwise reliable, keeping your current vehicle may be cheaper than replacing it. If the repair is close to the car’s value, or the car keeps breaking down, it may be time to compare other options.
Where refinancing fits in
Refinancing does not lower repair costs. It also does not pay for maintenance.
But if your current auto loan payment is making it hard to stay on top of repairs, refinancing may help if you qualify for a lower rate, a better term or a lower monthly payment.
That extra room in your budget could help you pay for routine maintenance, build an emergency repair fund or avoid putting car repairs on a high-interest credit card.
Just be careful: extending your loan term may lower your monthly payment but increase the total interest you pay over time.
Should you consider repair coverage?
Some drivers also look at optional coverage, such as mechanical breakdown insurance or a vehicle service contract, to help manage surprise repair costs.
These products are not the same as routine maintenance. They usually don’t cover oil changes, tires, brake pads or normal wear and tear. But depending on the plan, they may help with certain covered mechanical failures.
Before buying any coverage, read the fine print. Look at what’s covered, what’s excluded, the deductible, claim limits and whether the cost makes sense for your car’s age and mileage.
Bottom line
Auto parts tariffs can make some repairs more expensive, especially when imported parts are involved. That makes routine maintenance more important, not less.
Stay ahead of oil changes, brakes, tires, fluids and warning lights. If your car is still reliable, maintaining it may be cheaper than replacing it. And if your monthly payment is making it harder to cover basic upkeep, it may be worth checking whether refinancing could give your budget more room.
Check your refinance options through Caribou to see whether you could lower your monthly payment.
FAQs: Auto parts tariffs could make car maintenance more expensive
Do tariffs make car maintenance more expensive?
They can. Tariffs on imported auto parts can raise costs for certain replacement parts, especially if the part is sourced from outside the U.S. That does not mean every repair will increase by the same amount, but it can put pressure on repair costs.
Why do auto parts tariffs affect U.S.-made cars?
Even cars assembled in the U.S. often use parts from other countries. Engines, electronics, sensors, brake components and other parts may move through global supply chains before reaching a repair shop or dealership.
What car repairs could become more expensive because of tariffs?
Repairs that rely on imported parts may be more affected. That could include certain electronic components, sensors, brake parts, body panels, engine parts or transmission components, depending on the vehicle.
Can regular maintenance help me avoid higher repair costs?
Regular maintenance can’t prevent every repair, but it can reduce the chance of a small problem becoming a bigger one. Oil changes, brake checks, tire rotations, fluid checks and warning-light diagnostics can help protect your car and your budget.
Should I repair my car or replace it if parts are getting more expensive?
Compare the repair cost with your car’s value, loan balance, monthly payment, insurance cost and reliability. If the car is otherwise dependable, repairing it may be cheaper than replacing it. If repairs are frequent or close to the car’s value, it may be time to compare other options.
Can refinancing help with car maintenance costs?
Refinancing won’t make repairs or maintenance cheaper. But if you qualify for a lower monthly payment, it may give your budget more room for maintenance, repairs or emergency savings.
Should I buy a vehicle service contract or mechanical breakdown insurance?
It depends on the cost, coverage and your car’s age, mileage and reliability. These products usually don’t cover routine maintenance, so read the fine print before buying. Look for covered repairs, exclusions, deductibles and claim limits.
What is the best way to keep car costs down right now?
Stay current on basic maintenance, compare repair estimates, avoid ignoring warning lights and review your monthly car payment. If the payment is making it hard to afford upkeep, refinancing may be worth exploring.
