Rising Converter Costs: What Every Shop Needs to Know

Prices Are Shooting Up

If you’ve been ordering catalytic converters lately, you’ve probably noticed the prices are getting out of hand. A Prius converter that used to cost around $2,400 last year is now over $3,000 — and prices keep climbing.

This isn’t just one brand or model either. Across the board, converters are more expensive, and suppliers are warning that costs could go even higher before things level off. It is unusual to see converter prices from the dealers increase like this. Even during the height of theft and metal prices, OEM's kept prices the same. We anticipate that some aftermarket manufacturers will follow with price increases if the metal costs continue to rise.

What’s Behind the Price Hike

There are a few big reasons for this:

• Precious metals are at a two-year high. Platinum, palladium, and rhodium — the metals inside converters — have all gone up in price, partly because of supply issues and global conflicts that affect mining and trade.

• Imports and materials cost more. Trade tariffs and shipping costs have made manufacturing more expensive.

• High demand, low supply. With theft still a big problem, more converters are being replaced, but supply hasn’t caught up.

Bottom line — converters are made from expensive materials that are getting even more expensive.

Why It Matters for Your Shop

• Higher part costs mean tighter margins. You’ll need to keep an eye on your parts pricing and update your estimates regularly.

• More customers will get sticker shock. Be upfront about price increases and explain that it’s due to metal and supply costs, not shop mark-ups.

• More stolen cars could be totaled. For older vehicles, the cost of replacing a stolen converter might be more than the car is worth. Insurance companies may choose to total the vehicle instead of paying for the repair.

• Theft will likely rise again. When metal prices go up, so do thefts — expect another wave of stolen converters, especially from popular targets like Prius, Tacoma, and Honda models. “I personally got three calls today already for stolen converters,” said an employee at a shop in San Francisco.

What You Can Do

1. Check prices often – converter costs are changing monthly, sometimes weekly.

2. Talk to customers early – warn them that theft protection now makes more sense than ever.

3. Offer shields and deterrents – consider adding catalytic converter protection as a service add-on.

4. Plan for total-loss repairs – some cars won’t be worth fixing; help customers understand the math.

5. Watch your suppliers – stay updated on backorders or major price jumps before quoting jobs.

The Takeaway

Catalytic converters are getting pricier, theft is likely to rise, and customers will be feeling it. Keep your shop prepared by updating estimates, offering theft protection options, and explaining the situation clearly to customers. Staying informed now can save you headaches — and unhappy customers — later.