Business

Car owners choose modifications over new vehicles amid rising prices

President Donald Trump has come out in support of the REPAIR Act, a bill making its way through Congress that would ensure a car owner's right to repair and modify their vehicles without artificial barriers imposed by car manufacturers.

According to some consumer advocacy groups, original equipment manufacturers (OEMs) such as Ford, GM, and Tesla sometimes keep proprietary data a secret so that car owners are forced to go to pre-approved garages.

"Every year, new barriers, whether legal or technological, hinder vehicle owners' ability to work on their vehicles, seek repairs at independent automotive shops, and manufacture and install replacement and specialty parts, software, and services to enhance their vehicles' safety, performance, and comfort," according to the Specialty Equipment Market Association.

OEMs contend that to do the job right, car owners need to go to approved laborers who have been trained on the company's software and equipment. Going to the wrong repair shop could even void your vehicle's warranty. Meanwhile, consumer advocates say the rules are overly restrictive.

While the truth is probably somewhere in the middle, the reality for many car owners these days is that vehicles have become so expensive that many owners are choosing to actively upgrade their vehicles with aftermarket additions rather than purchasing a new one altogether.

A new survey from Extreme Terrain shows just how many American car owners are turning to aftermarket upgrades to save money on transportation costs.

Car owners hold onto vehicles longer due to rising prices

The specialty aftermarket auto parts industry has a $337 billion annual impact, according to SEMA, so it isn't like people aren't spending big bucks to keep their vehicles running smoother longer.

But even that money spent pales in comparison to the cost of purchasing a new vehicle these days.

Extreme Terrain surveyed 1,008 U.S. vehicle owners and found that half of them actively upgraded their vehicle instead of replacing it, or seriously considered doing so, in the past year. At the same time, 54% of them delayed a planned vehicle purchase due to rising prices, interest rates, or tariff concerns.

Of that group, only 13% plan to buy a replacement vehicle in the next 12 months.

The average manufacturer suggested retail price for a new car was 2.1% higher year over year at $51,288 in January, marking the 10th consecutive month that new-car average MSRPs topped $50,000. Although it dropped to $49,220 in May, according to Kelley Blue Book, it's still up 1.2% compared to May 2025.

Tariffs and fewer manufacturer incentives are contributing to the vehicle affordability crisis, and car shoppers are feeling the effects on their wallets.

 More than half of surveyed vehicle owners delayed buying a vehicle due to rising prices, interest rates, or tariff concerns.
More than half of surveyed vehicle owners delayed buying a vehicle due to rising prices, interest rates, or tariff concerns.

SimonSkafar / Getty Images

Ford owners, Gen Z, and Millennials delay purchasing new vehicles

According to the survey results, Ford owners are the most active aftermarket upgraders of any major brand surveyed. A third or Ford owners (33%) upgraded their vehicle instead of replacing it in the past year, and 19% plan to invest in more upgrades over the next 12 months.

The reason for the delay, according to 60% of Ford respondents: rising costs.

But Nissan owners showed the strongest resistance to replacement of any brand surveyed, with just 3% of them planning to buy a new vehicle in the next 12 months. More than three-quarters (81%) said they would rather put $2,000 into their current vehicle than take on a new car payment.

The majority of Gen Z and Millennials also delayed purchases due to costs at a higher rate (57% and 58%, respectively) than baby boomers did (37%), with over half of all vehicle owners (52%) saying they wouldn't replace their vehicles "until a major system fails entirely."

Vehicle age also plays a large part in car buying decisions, with 62% of owners of vehicles 13 or more years saying they kept their vehicle longer than planned because "replacing felt financially irresponsible."

While just over half of vehicle owners said they wouldn't replace until a major system fails entirely, that number rises to 58% among 8-to-12-year vehicle owners and 56% among 13+ year vehicle owners.

Commitment to modifications also deepens with vehicle age, as the 13+-year vehicle modification rate was 66%. Owners of 8-to-12-year vehicles had the highest average spend among active modifiers at $1,262.

What is the REPAIR Act?

The Right to Equitable and Professional Auto Industry Repair Act is a proposed federal legislation making its way through Congress that would codify consumers' rights to repair and modify the vehicles they own without interference.

Aftermarket modifications have traditionally been largely mechanical, but as cars become more technologically advanced, "modifying new vehicles to improve performance, safety, reliability, and appearance requires aftermarket businesses to access a vehicle's electronic control unit (ECU), On-Board Diagnostics Systems (OBD), and Advanced Driver Assistance Systems (ADAS) to ensure it understands how the parts and products installed interact with OEM systems," according to SEMA.

But that data is often held closely by OEMs.

Meanwhile, the Alliance for Automotive Innovation, which counts Ford, GM, and dozens of other companies among its members, has written in support of H.R. 7389, the Motor Vehicle Modernization Act of 2026, which is competing with the REPAIR Act.

"As we testified before the committee in January, independent auto repairers, collision repair experts, and leading automakers all support the right to repair. Always have, always will," the AAI said in a recent letter. "Those same independent repairers and collision experts will tell you they have no problem getting exactly what they need to properly and safely repair a vehicle."

The organization points to the 2014 memorandum of understanding that brought together automakers, independent repairers, and aftermarket parts retailers with a commitment from automakers to make all repair instructions, tools, and diagnostic codes "readily available to dealers and independent repairers. This is why 75% of post-warranty vehicle repair work today happens at independent shops."

So to recap, the auto industry believes the laws on the books are sufficient to protect drivers who want to take their vehicles to independent shops to repair and modify them. In contrast, others say there are way too many restrictions on making those changes.

There are competing legislations making their way through Congress right now, so if you stand on one side or the other, making a call to your representative to show your support could save you thousands in the long run.

Related: Ford, GM likely scratching heads over latest White House message

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This story was originally published June 14, 2026 at 9:36 AM.

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