Big changes are hitting the collision repair industry. With a 25% tariff on imported auto parts and vehicles taking effect as of April 3, 2025, many independent auto body shops are feeling the pressure. The ripple effect of these tariffs is being felt not only in part pricing, but in the entire repair process—from customer estimates to insurance billing.
Imported Parts Just Got Pricier Many independent repair shops rely on aftermarket and OEM parts sourced from overseas. These tariffs are inflating the cost of those parts significantly, and the results are twofold: thinner profit margins and tougher conversations with customers over rising repair bills.
The Domino Effect on Insurance Premiums Higher parts and repair costs are also translating to higher auto insurance premiums. Insurers are adjusting rates to reflect this shift, and that can lead to more customers paying higher deductibles—or delaying repairs altogether. For body shops, this can mean slower workflows and tighter cash flow.
Used Car Market Inflation = More Repairs The cost of new cars is expected to jump by $4,000 to $12,000 because of these tariffs, driving more consumers to the used car market. Older vehicles = more repair needs. While that means more business, it also means dealing with inconsistent part availability and escalating costs.
How Your Shop Can Stay Profitable Body shops are turning to shop management efficiency to buoyant up profitability through technology to help weather the storm. With ROME Collision Management Software, you can:
- Track parts and profitability in real time
- Speed up customer processing
- Keep production running smoothly and staying at capacity
- Improve margins by identifying inefficiencies across the repair process
Conclusion + CTA: Tariffs and rising costs are out of your control. But how you run your business isn’t. Learn how other successful independent shops are navigating 2025’s challenges with smart, efficient operations.
Book a demo today at www.romanager.com to see how ROME helps you control costs, communicate faster, and keep your repair shop profitable.