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My friend Kerry was proud to be on the cutting edge of hybrid technology when he bought a Toyota Prius a few years ago.
He's less proud to be on the cutting edge of hybrid-technology repairs. He just paid a bundle to replace the car's transaxle, part of the vehicle's new-wave continuously variable transmission, which failed just after the warranty expired.
"The dealer initially told me it would be $3,000 just for the labor, and $5,000 for the part. That's 40% of the original base price of the car!"
Kerry said, "I pushed back and they waived -- miraculously -- the part cost, maybe because we had recently bought a second Prius from them. … But the labor charge remained. Ouch."
Much of today's coolest car technology is expensive upfront and even more expensive to fix. Even the most mundane repair or replacement can cost a small fortune. You easily could shell out $1,000 to replace a key or a side mirror, $2,000 to fix a headlight and thousands more to mend more intricate systems such as adaptive cruise control or a rear-view camera.
"We're just deluged with comfort and convenience items" on new cars, said Jack Nerad, executive editorial director for vehicle-valuation company Kelley Blue Book. "But a lot of the stuff is so complicated (that repairs) can be difficult and expensive."
Just take a look at this price list compiled by the Highway Loss Data Institute to replace some of the gee-whiz parts on certain luxury autos:
2005 Mercedes C Class
- Adaptive cruise-control system, which maintains a set distance from the car in front: $3,742
- Xenon headlight with washer: $1,659
- Parking sensor $345
2005 Lexus RX330
- Adaptive headlight with washer: $1,627 per light
- Backup camera: $4,217
- Adaptive cruise control: $1,318
2005 BMW 5 Series
- Adaptive headlight with washer: $2,035
- Parking sensor: $372
- Adaptive cruise sensor: $2,222
2004 Cadillac Escalade
- Ultrasonic rear-parking assist: $934
- Xenon headlight: $765
- Heated side mirror with turn indicator: $997
Remember, this is just cost of the parts. Labor's extra. And the list doesn't touch some of the most popular technology, like global-positioning systems, headset-mounted DVD players and built-in, hands-free calling systems.
The $1 key becomes the $1,000 key
Technology has even transformed one of my most deeply ingrained habits: losing keys. I made copies by the dozen for our old Ford Explorer, never paying more than a buck apiece at a local hardware store. My husband curtly informed me that I will have to reform when it comes to our Volvo, whose keyless entry fob costs a cool $350 to replace.Video: Weston on the expensive repairs of luxury vehicles
That's cheap compared to replacing a keyless ignition device. Nerad's got one of those because he's testing a $103,000 Mercedes-Benz that recognizes the key fob he carries in his pocket. Should he lose it, a replacement would cost about $1,000.
Then there are hybrid technologies. The transmission, batteries and braking systems are costly to replace, and the number of mechanics qualified to work on hybrids is limited. The potential costs aren't lost on consumers: a recent Edmunds.com poll found that 44% of those surveyed were "extremely concerned" hybrids would be expensive to fix.
Of course, auto repairs in general have become more expensive as manufacturers computerize more systems, incorporate expensive lightweight materials and experiment with new designs. The cost of the average repair has risen more than 60% since 1992, the Highway Loss Data Institute says, outpacing inflation. (MSN Autos offers a look at problem areas and repair costs for most used models here.) The average repair bill for the first half of 2005 was $3,912, according to the institute.
But the high cost of replacing electronics and other cutting-edge technology is what often sideswipes drivers, car experts say. Big bills from relatively small components also increase the likelihood that an insurer will declare a car totaled after a collision because the damage is too expensive to fix.
And speaking of insurance, expect to pay more for that, too.
"We have all this wonderful technology making cars safer," said Candysse Miller, executive director of the Insurance Information Network of California and a car buff who drives an Audi S4. "But if it's more expensive to repair, it's more expensive to insure."
Insurance rates can also be affected by the fact that certain items -- think xenon headlights and airbags -- are the favorite targets of thieves.
The smart approach
Does that mean you should opt for an old beater without any of today's safety or convenience features? Not at all. But go in with your eyes open:Scan the reviews, recalls and technical service bulletins. Some research up front can help you steer clear of the most problematic cars and technologies. The number and type of recalls and technical-service bulletins (TSBs), which are a kind of early warning system for mechanics, can be particularly informative, says Philip Reed, consumer advice editor for Edmunds.com.
"You can pull up two cars and compare them and you might see one has no recalls and no technical-service bulletins, while the other has three recalls and 15 TSBs," says Reed, whose site lists recalls and TSBs for most model years. "We find that problems surface in the first 36,000 miles. Cars are either really solid early on, or the ones with problems" become obvious.
Consider extended warranties. On many consumer products, extended warranties are a rip-off designed to pad sellers' profit. On vehicles loaded with new technology, though, they might be a worthwhile investment if you plan to own the car for longer than the standard warranty or if you're buying it used. Look for the manufacturer's warranties rather than those offered by third parties, "which have a bad habit of disappearing," noted Kelley Blue Book's Nerad. You typically can buy an extended warranty any time before the standard warranty expires, so take some time to shop around for a good price.
Invoke lemon laws. If you have a new car that's spending more time in the shop than on the road, study your state's lemon law (Find a link to your state's legislation at the Center for Auto Safety). The laws typically cover new cars for the first 18 to 24 months and outline remedies for vehicles with persistent problems. Let the dealership know you're considering invoking the law. Reed says many reputable dealers will buy a new car back or terminate a lease to avoid lemon-law problems.
"Rather than have the black mark, they'll take it back," Reed said.
Don't buy a champagne car on a beer budget. This should be obvious, but it's a bad idea to buy a car bristling with new technology unless you've got some money to burn. More modestly priced cars will almost certainly be cheaper to maintain, repair and insure. Besides, yesterday's luxury technology often winds up as tomorrow's standard equipment, so if you wait long enough you may be able to get the space-age goodies on a mid-priced car. Multiple airbags, CD/MP3 players and heated seats were specialty items a decade ago but now are commonplace on even some of the cheapest cars.
Liz Pulliam Weston's column appears every Monday and Thursday, exclusively on MSN Money. She also answers reader questions in the Your Money message board.
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