The cost of spare parts for cars is becoming increasingly expensive, according to a member of a car valuation company in Luxembourg, confirmed by an association in France.
Are cars becoming a luxury?
When a vehicle breaks down or is involved in an accident, experts can be appointed to identify the source of the problem, assess the damage, and estimate the vehicle’s residual value.
Our colleagues at RTL Infos spoke to Patrick (an alias), one of the car valuation experts in Luxembourg. In his opinion, the issue lies in the surge in spare parts costs. Previously, repairs were split evenly, with 50% of the cost attributed to labour and 50% to parts. Now, however, labour accounts for just 25%, with the remaining 75% driven by the cost of spare parts.
RTL Infos reported on this last year: the Automobile Security and Reparation association (SRA), which brings together the car insurance companies operating in France, is also denouncing an explosion in the cost of repairs: +26% between 2019 and 2023 alone.
The association reports, that from one generation to the next, “the price of a complete front bumper has risen by an average of 14% for a Renault Clio, 96% for a Hyundai Tucson and even 131% for a Peugeot 2008”. With dual engines, hybrids would be the most expensive cars to repair, while 100% combustion engines would remain the cheapest. The SRA also views the electrification of the vehicle fleet as a contributing factor to rising repair costs in the years ahead.
The majority of claims concern the front end of vehicles, and the SRA emphasises that “the front end is increasingly fitted with expensive components, such as LED lights and sensors for driving aids”. These are components that are difficult to repair, so they generally have to be replaced, according to the SRA.
In Luxembourg, Patrick confirms this trend, particularly in terms of headlights. He states that replacing a conventional headlight before cost close to €300–€350. As xenon headlights came along, the price went up to between €1,000 and €1,500. Now, with LED headlights, the cost lies between €2,500 and €3,000. Furthermore, laser headlights can cost between €4,000 and €6,000. This means that a front-end collision can entail an astronomical cost, according to Patrick.
Patrick’s comments are in line with the findings of the SRA association in France. While between 2017 and 2021, the average cost of replacing a lens after a claim (excluding labour) had already jumped by 46%, the increase between 2020 and 2024 is now 70%. The reason for this is simple: the newer the vehicle, the more expensive the lights. In 2024, reports the SRA, a headlamp unit – before replacement – cost an average of €827. This cost was ‘only’ €465 for a vehicle over 15 years old, but rose to €1,094 for a car less than 2 years old.
Some extreme examples are staggering: according to the SRA, the Kia EV6 is one of the models with the highest lighting costs. At the time of the study, replacing all the rear lighting components of the crossover cost €8,897 including VAT (for parts alone).
Patrick simply cannot believe his eyes when confronted with car prices: “Small, basic city cars sold for €30,000, that’s not normal. A few years ago, for €50,000, you could get a nice Mercedes or BMW. Now you need at least €70,000, and you can’t afford to go overboard on the options.” He emphasises that cars are becoming a luxury product and that the only way to stem this problem will be through leasing contracts that are adapted to an individual’s available monthly budget.
According to Patrick, the high cost has caused significant changes in Luxembourg’s automobile landscape, with the car fleet aging, except for leased vehicles.
Since the Covid-19 crisis, car sales in Luxembourg have been struggling to return to their former levels. In 2024, the National Society of Automotive Traffic of Luxembourg (SNCA) registered 46,635 new vehicles, 2,520 fewer than in 2023 (around -5%) and 8,373 fewer than in 2019 (around -15%), a clear symptom of the trend remarked by Patrick and the SRA.
