Newer vehicles cost a ton. So do the repairs and maintenance

New cars with advanced technology such as infotainment systems and collision prevention software are pushing up maintenance costs – and affecting clients’ bottom lines.

Dusan Ramnjanc, general manager of Ontario inspection and reconditioning for online used car retailer Clutch, says the rule of thumb used to be that car owners should budget 1 per cent of their income for car repairs and maintenance. But as clients pay more for new cars, he says they should also think about setting aside more to maintain and fix the digital systems that come with them.

Globe Advisor spoke with Mr. Ramnjanc about the rising budget line for car maintenance.

Why is saving 1 per cent toward repairs not a realistic number anymore?

Technology is very convenient, but it’s also very expensive should something go wrong. The technology in newer cars means that everything from brakes to windshields are connected through multiple modules. And the wire harnesses that run to these modules need to be replaced, not repaired, and can cost thousands.

For example, headlights used to be cheap to replace, and the same was true with windshields. Replacing a windshield in a new car can run you more than $1,000 because of the modules that need to be reprogrammed so we can recalibrate. Headlight assemblies are all specialized LEDs now.

If you slightly damage your front bumper, that can now be a major fix. That bumper houses crash sensors and radar units that control of the car’s safety systems. Those need to be replaced. It can cost $20,000-plus in repairs, and sometimes will write off the car.

What about using secondary parts to fix the cars?

Ten years ago, you could get almost anything from the aftermarket suppliers. Now, most parts must come from the dealers, the original equipment manufacturers. Because the cost is so high and technology so advanced, it doesn’t make sense for an aftermarket parts maker to make this stuff.

What if you just don’t fix something that breaks down right away, like the air conditioning?

If the car gives you a warning light, I wouldn’t ignore it. Many of the car systems are tied into each other. If one unit fails, others may have issues. It’s not the days of cars from the 2000s, when you heard a noise, then it went away, and everything was fine.

What does this mean for do-it-yourself mechanics?

I like to work on my own cars. For basic cars, you can still do some things, such as oil changes and brakes. As the technology goes up, you’re able to do less at home. Some European cars don’t even have dipsticks for checking the oil. You would have to check it through the infotainment unit on the dashboard.

The window of what a home mechanic can do is getting smaller as these cars get more advanced. As the window is closing, costs will go up to do some of these things.

This interview has been edited and condensed.