Are your customers ready to pay more for ADAS repairs costs?

Advanced driver assistance systems (ADAS) are blowing out the costs of vehicle repairs by up to nearly 40 per cent, and experts are warning workshops to adequately prepare their customers in order to avoid bill shock.

A recent study by the American Automobile Association (AAA) found ADAS, which includes features like automatic emergency braking, blind spot monitoring, and lane departure warnings, can add up to 37.6 per cent to the total repair cost after a crash. This is due mostly to the high cost of replacing and calibrating the sensors that these systems rely on.

The study compared the costs of repairs for 2018 models to 2023 models of the same vehicles (the 2023 Ford F-150, 2023 Nissan Rogue, and 2023 Toyota Camry). It found the cost of repairing minor front-end collisions was up an average of 13.2 per cent, the cost of side mirror replacements was up 70.8% and the cost of minor rear collision repairs was up 40.9%.

In its report, AAA warned consumers to both “be aware of the repair costs associated with these vehicle systems” and to “prioritise repairing them when necessary to ensure they work as intended”.

While the vehicles used for the study were obviously the American models, the data is likely to be comparable for Australian and New Zealand models where ADAS systems are present. Which is why for the past year, at least in Australia, the Australian Automotive Aftermarket Association (AAAA) has been urging repair workshops to lay the groundwork with customers. In March 2023, Lesley Yates, AAAA’s Director of Government Relations and Advocacy, said workshops should seize the opportunity to “pull back the curtain” and educate consumers about ADAS and the cost of ADAS repair.

“Many commentators are already pointing out the need for the automotive industry to better educate and engage consumers on how to incorporate ADAS technology into the day-to-day driving experience,” she said.

“Perhaps this is a role that we can play. For instance, as we undertake logbook servicing of these new vehicles, there is an opportunity to educate consumers on the features and to intentionally work in a conversation about ADAS."

“This is the right time for the independent aftermarket to work together to support consumer awareness that we have the training and the technology to ensure their ADAS technology continues to operate within the required operating parameters.”

The opportunity for our industry from ADAS is certainly immense. According to data from Persistence Market Research, a New York-based research consultancy, the value of the global ADAS aftermarket in 2022 was US$1.058 billion (A$1.57 billion) and is expected to reach US$2.77 billion (A$4.12 billion) by 2033—a compound annual growth rate of around 9.1 per cent.

With so much opportunity on the line, it’s no wonder the AAAA is warning the aftermarket industry to set the narrative around ADAS repair now.

“We are experiencing some subtle public messaging from the car industry implying you can only trust an authorised repairer to service an ADAS-equipped vehicle,” Lesley said. “This is clearly not true.”