Why are car repairs in Luxembourg becoming more expensive?

In Luxembourg, the cost of car parts is skyrocketing, making car repairs much more expensive. According to Patrick (name changed), a car valuation expert, 75% of the repair costs are now for spare parts, whereas previously the costs were divided equally between spare parts and labour.

This trend is confirmed by data from the Association for Automotive Safety and Repair (SRA) in France, which shows that the cost of car repairs has increased by 26% between 2019 and 2023. Front bumpers have risen in price particularly markedly: for the Renault Clio by 14%, for the Hyundai Tucson by 96% and for the Peugeot 2008 by 131%.

According to RTL, one of the most expensive components was the headlights. Patrick noted that replacing conventional headlights used to cost €300-€350, and with the advent of xenon headlights it cost €1,000-€1,500. Today, LED headlights cost between €2,500 and €3,000 and laser headlights can cost up to €6,000. This means that even a minor accident can incur astronomical repair costs.

The SRA confirms that between 2017 and 2021, the cost of replacing headlights increased by 46%, with a 70% increase between 2020 and 2024. The newer the car, the more expensive its lighting: in 2024, the average cost per headlight is €1,094 for cars under 2 years old and €465 for those over 15 years old. For example, replacing the rear lights on a Kia EV6 costs €8,897.

Experts attribute the rise in prices for spare parts to several factors:

• Electrification of the vehicle fleet. Hybrids and electric vehicles require more expensive components, especially for the front of the vehicles where LED lights, sensors and driver assistance systems are located.
• Rising raw material and logistics costs following the COVID-19 pandemic.
• Fast renewal of car models, making old parts scarce.

According to Patrick, the prices of new cars have also risen significantly. A basic city car now costs €30,000, whereas a few years ago you could buy a premium Mercedes or BMW for €50,000. Today, this requires a minimum of €70,000, and no frills.

The situation is leading to cars becoming a luxury item, with leasing becoming the only option for many. According to the Luxembourg National Society for Automobile Traffic (SNCA), 46,635 new cars will be registered in 2024, 5% less than in 2023 and 15% less than in 2019.