Tariff Turbulence: How Auto Shops are Navigating Changing Prices

This year has brought many headwinds for the auto service field—particularly with regard to tariffs. From independent shops and suppliers to dealerships and automakers, the entire automotive field has been affected, as have several other sectors that rely on imported materials and goods.

These national decisions are now beginning to impact small, independent operations, like Girlington Garage, an auto shop in South Burlington, Vermont. Nya Key, the shop’s service manager, spoke with National Oil and Lube News about the changes shops like theirs are seeing and how they’re supporting their customers while taking care of their own needs.

Unpredictable Changes

Girlington Garage began noticing an uptick in prices in March. Since then, one of the biggest challenges has been an inability to stockpile inventory before prices creep up. Even if the shop knows price increases are coming, they just don’t have the space to store excess inventory.

“Especially being a small shop in a small state, when we first started hearing about the possibility of tariffs, we were very scared, because we don’t have the ability to stock up on parts,” explains Key. “We carry oil filters and fluids, but we can’t stock up for average, normal repairs.”

Adding to the struggle are suppliers who do not communicate price changes. Girlington utilizes a website that connects them to dealers for parts—but upon ordering certain components, they found the price was higher when they arrived than was advertised. This created significant obstacles for the shop as it tried to navigate the issue while taking care of its customers. 

Fortunately, though, the shop has noticed suppliers being more upfront recently, especially on the aftermarket side. They’ve been made aware of upcoming price increases that aren’t quite as steep as they were earlier this year, underscoring the importance of being in close communication with shop vendors and suppliers.

“When my reps come in for our check-ins every month, I am getting more of a warning,” shares Key. “Prices are still changing, but it’s happening at more of a slower [pace] and shorter amount. So, the cost of our brakes just increased by like $10, which is a lot easier to chew than having a price that was two times the amount we quoted.”

Planning for Jobs in Advance

As prices continue to fluctuate, there are measures shops like Girlington are taking to mitigate the impact. For Key, this means staying on top of parts pricing and locking in prices in advance to secure the best deal.

“When we’re ordering parts, or when I have a customer that has an OEM part, I double-check parts availability, and I order it right away. So, let’s say the job’s two weeks out; I make sure to lock in that price as fast as I can, just to not have any changes,” explains Key.

Aside from price changes, Girlington has faced difficulty in the availability of parts, particularly for non-domestic manufacturers. Metal components, like exhaust systems and rotors, have been especially difficult for the shop to acquire recently. Meanwhile, brakes are almost entirely OEM right now and are typically on backorder or take several weeks to arrive.

Since Girlington is unable to stockpile components, the shop takes preemptive measures to avoid a surplus of unused parts. For example, parts that require special order necessitate a deposit from the customer that typically sits around 15%, which the shop calls a restocking fee. And for parts that can’t be returned, customers must pay for them upfront. These policies help protect the business from losing out on inventory that is ordered but cannot be used. 

“That is kind of how we protect our business, just because we’re so small,” says Key. “Even now, I have a couple of parts that I’ve purchased within the last year that are just sitting here because I can’t return them, and it really takes a lot of cost to just hold parts that you can’t use.”

Keeping Customers Grounded

Customers are increasingly worried about how and when rising prices will impact them. Girlington has seen more customers coming in asking about when the shop expects prices to change. While Key does her best to stay updated, it’s difficult to know in advance if something will change.

For some customers, this prompts them to request that certain components be replaced when they don’t need to be. At Girlington, they emphasize that it’s always the customer’s choice, and make it clear to each customer what the status of their vehicle is and what it needs—but Key cautions customers from making purchases purely out of fear, as no one can predict what changes are in store over the next few months.

“It’s always their choice, but I do try to guide them toward the need of the repair more than the pricing,” says Key. “Because I don’t have proof of when things are going to increase, and the whole point of being in service is to make sure things are done right the first time and that the vehicle is safe. So, I always try to give them the guidance that I have. But since we are not parts manufacturers or suppliers, I’m still guiding in the way that I’ve always guided as an advisor or service manager.”