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5 common car repair costs in New Zealand – and how to avoid the sting (2025)

Ever notice how cars have a magical way of sounding expensive?

You’re driving down the road and suddenly you hear a weird noise rattling throughout the cabin, you can feel your car losing power, and the dashboard lights are flashing like fireworks. When your car breaks down, it can be a costly inconvenience. Check out these five common repairs that cost New Zealand drivers a lot of money, how to spot them early, and how to stay one step ahead. 

cash

1. Transmission

Average repair cost:

$9,600*

What it is / how it happens:

The transmission transfers power from the engine to the wheels. Failures usually happen from wear and tear, overheating, or running low on transmission fluid. Lack of servicing, towing heavy loads, or aggressive driving can also lead to internal clutch or solenoid damage in automatic transmissions.

Common warning signs:

  • Delayed or harsh gear changes
  • Jerking or slipping when accelerating
  • Whining or humming noise from transmission (especially CVT models)
  • Transmission warning light on
  • Burning smell or red fluid leaks underneath the car
transmission

How to reduce the risk:

  • Check and replace transmission fluid at recommended intervals
  • Fix leaks early before fluid runs low
  • Avoid towing heavy loads unless the vehicle is designed for it
  • Don’t ignore small shifting issues — early diagnosis can save thousands

Covered by AA Mechanical Breakdown Insurance?

Yes**

2. Air Conditioning

Average repair cost:

$8,600*

What it is / how it happens:

Your A/C system includes a compressor, condenser, and evaporator — all working to cool your cabin. Damage often happens when refrigerant gas leaks out, moisture gets into the system, or the compressor seizes from lack of lubrication.

Common warning signs:

  • Air no longer cold or takes longer to cool
  • Unusual noises like clicking or squealing when A/C is turned on
  • Musty or damp smell from vents
  • Windows fogging up more easily even when A/C is on.
air conditioning

How to reduce the risk:

  • Run your A/C for a few minutes every week, even in winter, to keep seals lubricated
  • Replace your cabin filter regularly to maintain airflow
  • Have the system serviced every 2–3 years to check gas and oil levels
  • Repair any gas leaks early before the compressor is damaged

Covered by AA Mechanical Breakdown Insurance?

Yes**

3. Engine Computers

Average repair cost

$3,500*

What it is / how it happens:

The engine control unit (ECU) is the computer that manages your car’s performance. Electrical spikes, flat batteries, water leaks, or corrosion in wiring can damage the ECU. Sometimes even a poor jump-start can cause a voltage surge leading to failure.

Common warning signs:

  • Engine warning light on
  • Car cranks but doesn’t start
  • Engine stalls randomly or runs very roughly
  • Strange behaviour after a jump-start or voltage spike
ecu

How to reduce the risk:

  • Keep battery terminals clean and tight
  • Avoid incorrect jump-starting
  • Fix any water leaks in the cabin or engine bay immediately
  • Avoid cheap aftermarket accessories that can overload electrical systems

Covered by AA Mechanical Breakdown Insurance?

Yes**

4. Head Gasket

Average repair cost:

$5,900*

What it is / how it happens:

The head gasket seals the gap between the cylinder head and engine block. Overheating is the most common cause of failure — often due to coolant loss, a blocked radiator, or a failed thermostat. Once the gasket blows, coolant can leak into the engine and cause serious damage.

Common warning signs:

  • White smoke from the exhaust
  • Engine overheating
  • Loss of power or rough running
  • Milky oil or residue under the oil cap
  • Unexplained loss of coolant
head gasket

How to reduce the risk:

  • Regularly check coolant levels and top up as needed
  • Replace coolant and thermostat at service intervals
  • Stop driving immediately if the engine overheats
  • Repair any cooling system leaks early

Covered by AA Mechanical Breakdown Insurance?

Yes**

5. Power Steering

Average repair cost:

$4,300*

What it is / how it happens:

Power steering systems use hydraulic or electric assist to make turning the wheel easier. Hydraulic systems can leak or develop pump faults; electric systems can suffer from motor or control unit failures. Low fluid or contaminated fluid is a common cause of damage in hydraulic setups.

Common warning signs:

  • Whining or groaning noise when turning
  • Heavy or uneven steering
  • Steering warning light on the dash
  • Fluid leaks near the front of the car
power steering

How to reduce the risk:

  • Regularly check power steering fluid levels
  • Don’t hold the steering at full lock for too long
  • Replace fluid if it’s dark or contaminated
  • Get steering noises or stiffness checked early

Covered by AA Mechanical Breakdown Insurance?

Yes**

How can you stay ahead of repairs?

Even though AA Mechanical Breakdown Insurance can help cover unexpected issues, keeping on top of car maintenance is key.

Regular servicing at an AA Auto Centre helps catch small issues early and keep your vehicle running its best.

If you’re buying a used car, an AA Pre Purchase Inspection will give you complete peace of mind. An AA Pre Purchase Inspection includes a comprehensive 100+ point vehicle check by an experienced mechanic, including exterior, interior, driveline, engine and brake inspections.

*Disclaimer: Average repair cost data provided by Autosure from claims from 2023/2024. These can vary for make/model and not all components are covered by all policies.

**For accepted claims, costs will be covered by AA MBI, up to the applicable limit and subject to the policy.