Recent data is painting a clear picture: consumers are feeling the pressure—and it’s beginning to impact the collision repair industry in real, measurable ways.
According to reporting by AutoBody News, citing the University of Michigan Surveys of Consumers, consumer confidence dropped sharply in April to its lowest level on record.
The preliminary Consumer Sentiment Index fell 11% to 47.6—marking the lowest reading in more than 70 years. Rising energy costs and ongoing inflation concerns are weighing heavily on households across all income levels and age groups.
What’s Driving the Decline?
The data shows a widespread shift in how consumers are thinking about spending:
- Buying conditions for vehicles and durable goods have worsened
- Inflation expectations jumped significantly to 4.8%
- Personal financial outlooks declined across the board
- Short-term business expectations dropped sharply
In short—people are feeling uncertain, and they’re tightening their wallets.
Why This Matters for Collision Repair Shops
While this may seem like broad economic news, the ripple effects are already being felt at the shop level.
Insights from the CCC Crash Course 2026 highlight several key shifts:
1. Fewer Repairable Claims
Affordability pressures are changing how consumers use their insurance:
- Higher deductibles
- Reduced coverage
- More skipped claims for minor damage
As a result, repairable claims declined 9.7% in 2025, while total loss frequency climbed to a record 23.1%.
2. An Aging Vehicle Fleet
With consumers hesitant to purchase new vehicles:
- New vehicle sales dropped ~6% in Q1 2026
- The average vehicle age hit 12.8 years
Older vehicles dominate the road—and they’re more likely to be pushed into total loss territory during repairs.
3. A Narrower Window for Repairs
The data shows a tightening margin for what is considered repairable:
- Repairable claims for vehicles ≤6 years old dropped from 67% (2020) to 58.3% (2025)
- Vehicles aged 7–12 years now make up nearly 41% of total loss valuations
At the same time, used vehicle values—tracked by the Manheim Used Vehicle Value Index—continue to rise, further complicating repair vs. total loss decisions.
4. More Complex Repairs
Even as claim volume declines, repair complexity is increasing:
- Calibrations are now required on 28.3% of repairable estimates, up from 21.8% the previous year
Fewer vehicles are entering shops—but the ones that do require more time, expertise, and precision.
The Bottom Line
This shift isn’t just about fewer jobs—it’s about higher stakes per job.
As noted in the Crash Course report:
“Fewer claims do not mean less risk — it means the risk that remains carries higher stakes, greater variability, and more financial consequence.”
For shops, distributors, and partners across the industry, this reinforces the need to:
- Stay efficient and adaptable
- Invest in training and advanced repair capabilities
- Maintain strong relationships with customers navigating financial uncertainty
At Colours, we’re committed to helping our partners navigate these changes with the tools, products, and support needed to succeed—no matter how the market shifts.
This article was adapted from reporting by AutoBody News, with additional insights from industry data and the CCC Crash Course 2026 report.