Hiteh Autoteenindus CEO Raul Põdersalu said the shift is driving up spending on major repairs, with some car owners willing to pay thousands of euros to keep older vehicles on the road longer rather than trade them in.

"In the past, older cars only had just enough basic repairs done to pass inspection," he said.

Põdersalu says brand dealerships servicing newer cars have seen less work, while independent garages handling major engine repairs and other expensive fixes are busier than before, including with jobs costing as much as €10,000.

Topauto aftersales director Risto Seiler said weak car sales last year are now affecting service volumes, since fewer new cars sold means fewer vehicles entering maintenance cycles.

This year's growth in new car sales, he added, won't affect workshop demand for another two to three years.

Seiler noted that cars often change owners after about five years, with new owners less likely to return to dealerships for repairs due to higher prices.

"Most other repairs we handle are warranty-related, so it's difficult to compare," he said. Even so, he's noticed the increase in car repairs as vehicle values rise, especially with added registration costs on new cars.

Drivers staying thrifty

Customers are also increasingly shopping around, comparing repair prices and delaying non-urgent maintenance such as cabin air filter, engine filter or spark plug replacements when mileage is low.

"Whenever possible, people try to postpone certain expenses, depending on the car's mileage and age," Seiler said.

Raul Pappel, the manager at Forss Autoteenindus' Tähesaju location, said seasonal demand is strong, and while competition varies by business, spring is typically a busy time for auto repairs.

At their workshop, he added, "engine repairs are done when they need to be done."

Pappel said swings in car sales are reflected in repair shop business, meaning last year's downturn in the auto market has led to weaker revenue for garages as well. Customers are also more carefully watching their spending, but for many, a car is still a necessity.

Beyond car taxes and registration fees, Põdersalu believes another reason more drivers are hanging onto their older cars for longer is concern over the increasing complexity of technology in newer models.

"A lot of the new requirements stem from environmental regulations, and the increased risk of breakdowns has created a real headache for automakers," he said.

Issues with modern emissions and electronic systems can mean costly repairs, including clogged particulate filters in newer gasoline engines and software faults in electric vehicles (EVs).

"Older cars tend to be more reliable," Põdersalu said.

Fewer takers for dirty jobs

Both Pappel and Seiler confirmed parts prices have risen, though Seiler said strong local competition on the parts market helps limit the impact on vehicle owners.

Some distributors also run promotions on older models, he added.

A growing challenge for garages, however, is labor shortages. While Topauto attracts a lot of applicants for apprentice automotive technician positions, many end up lacking focus and often need to be closely supervised.

"They need a lot of guidance, and there are fewer capable self-starters," Seiler said, blaming the digital world for the declining interest.

Põdersalu said younger generations of workers are less interested or skilled in hands-on work.

"There's definitely competition between workshops to keep these workers on the payroll," he admitted.

Pappel said his location didn't lose or hire any new employees last year, but added the shop expects to bring in new staff this year. Every location, he added, tries to offer its workers incentives to stay.

--

Follow ERR News on Facebook and X and never miss an update!