MONEY
High-tech cars mean high-priced repairs.
When keys can cost hundreds of dollars and headlights thousands, you can
bet virtually any repair bill will be a shocker.
By Liz Pulliam Weston
My friend Kerry was proud to be on the cutting edge of hybrid technology
when he bought a Toyota Prius a few years ago.
He's less proud to be on the cutting edge of hybrid-technology repairs.
He just paid a bundle to replace the cars transaxle,
part of the vehicle's new-wave continuously variable transmission, which
failed just after the warranty expired.
"The dealer initially told me it would be $3,000 just for the labor, and
$5,000 for the part. That's 40% of the original base price
of the car!"
Kerry said, "I pushed back and they waived -- miraculously -- the part
cost, maybe because we had recently bought a second
Prius from them. … But the labor charge remained. Ouch."
Much of today's coolest car technology is expensive upfront and even more
expensive to fix. Even the most mundane repair
or replacement can cost a small fortune. You easily could shell out $1,000
to replace a key or a side mirror, $2,000 to fix a
headlight and thousands more to mend more intricate systems such as adaptive
cruise control or a rear-view camera.
"We're just deluged with comfort and convenience items" on new cars, said
Jack Nerad, executive editorial director for
vehicle-valuation company Kelley Blue Book. "But a lot of the stuff is so
complicated (that repairs) can be difficult and expensive."
Just take a look at this price list compiled by the Highway Loss Data Institute
to replace some of the gee-whiz parts on certain
luxury autos:
2005 Mercedes C Class
Adaptive cruise-control system, which maintains a set distance from the
car in front: $3,742
Xenon headlight with
washer: $1,659
Parking sensor $345
2005 Lexus RX330
Adaptive headlight with
washer: $1,627 per light
Backup camera: $4,217
Adaptive cruise control:
$1,318
2005 BMW 5 Series
Adaptive headlight with
washer: $2,035
Parking sensor: $372
Adaptive cruise
sensor: $2,222
2004 Cadillac Escalade
Ultrasonic rear-parking
assist: $934
Xenon headlight: $765
Heated side mirror
with turn indicator: $997
Remember, this is just cost of the parts. Labor's extra. And the list doesn't
touch some of the most popular technology,
like global-positioning systems, headset-mounted DVD players and built-in,
hands-free calling systems.
The $1 key becomes the $1,000 key
Technology has even transformed one of my most deeply ingrained habits:
losing keys. I made copies by the dozen for our old
Ford Explorer, never paying more than a buck apiece at a local hardware
store. My husband curtly informed me that I will have to
reform when it comes to our Volvo, whose keyless entry fob costs a cool
$350 to replace. That's cheap compared to replacing a
keyless ignition device. A $103,000 Mercedes-Benz recognizes the key
fob you carry in your pocket.
Should you lose it, a replacement would cost
about $1,000.
Then there are hybrid technologies. The transmission, batteries and braking
systems are costly to replace, and the number
of mechanics qualified to work on hybrids is limited. The potential costs
aren't lost on consumers:
a recent Edmunds.com poll found that 44% of those surveyed were "extremely
concerned" hybrids would be expensive to fix.
Of course, auto repairs in general have become more expensive as manufacturers
computerize more systems, incorporate
expensive lightweight materials and experiment with new designs. The cost
of the average repair has risen more than 60%
since 1992, the Highway Loss Data Institute says, outpacing inflation. The
average repair bill for the first half of 2005 was
$3,912, according to the institute.
But the high cost of replacing electronics and other cutting-edge technology
is what often sideswipes drivers, car experts say.
Big bills from relatively small components also increase the likelihood
that an insurer will declare a car totaled after a collision
because the damage is too expensive to fix.
And speaking of insurance, expect to pay more for that, too.
"We have all this wonderful technology which is supposed to make cars safer,"
said Candysse Miller, executive director of the
Insurance Information Network of California and a car buff who drives an
Audi S4. "But if it's more expensive to repair, it's more
expensive to insure."
Insurance rates can also be affected by the fact that certain items --
think xenon headlights and airbags -- are the favorite targets
of thieves.
The smart approach
Does that mean you should opt for an old beater without any of today's
safety or convenience features?
Not at all. But go in with your eyes open:
Scan the reviews, recalls and technical service bulletins. Some research
up front can help you steer clear of the most problematic
cars and technologies. The number and type of recalls and technical-service
bulletins (TSBs), which are a kind of early warning
system for mechanics, can be particularly informative.
You can pull up two cars and compare them and you might see one has no recalls
and no technical-service bulletins, while the other
has three recalls and 15 TSBs, you'll find that problems surface in the
first 36,000 miles.
Cars are either really solid early on, or the ones with problems become
obvious.
Consider extended warranties. On many consumer products, extended warranties
are a rip-off designed to pad sellers' profit.
On vehicles loaded with new technology, though, they might be a worthwhile
investment if you plan to own the car for longer than
the standard warranty or if you're buying it used. Look for the manufacturers
warranties rather than those offered by third parties,
which have a bad habit of disappearing. You typically can buy an extended
warranty any time before the standard warranty expires,
so take some time to shop around for a good price.
Don't buy a champagne car on a beer budget.
This should be obvious, but it's a bad idea to buy a car bristling with
new technology unless you've got some money to burn.
More modestly priced cars will almost certainly be cheaper to maintain,
repair and insure. Besides, yesterday's luxury technology
often winds up as tomorrows standard equipment, so if you wait long enough
you may be able to get the space-age goodies on a
mid-priced car. Multiple airbags, CD/MP3 players and heated seats were specialty
items a decade ago but now are commonplace
on even some of the cheapest cars.
