Cost of automotive repairs to rise in second half of the yr: Three in five garages will hike prices on account of a shortage of parts and better energy prices
- Some 63% independent garages and dealership workshops plan price rises
- Rising operational energy and fuel bills and reduced consumer spending hit the sector in the primary half of 2022, businesses told the Motor Ombudsman
- Motorists are cutting back on each servicing and ad-hoc repairs to lower your expenses
- Shift in MOT patterns brought on by Covid lockdown exemption has also taken a toll
Drivers in Britain are more likely to see automotive repairs and servicing develop into costlier in the approaching months because of this of the fee of living crisis, in response to a latest report.
Some 63 per cent of independent garages and dealership workshops told the Motor Ombudsman that they might be trying to increase prices with a purpose to stay afloat after a difficult opening six months of 2022.
A mix of steeper energy bills and motorists cutting back on spending because of this of tightened purse strings in the course of the cost of living crisis has put an enormous strain on the nation’s motor repairs sector.
A shortage of parts, record-high fuel prices and fewer MOTs in the primary six months of the yr also had a serious impact on garages within the yr thus far, the study found.
Is the fee of automotive repairs set to get costlier? Three in five garages polled by the Motor Ombudsman said they wish to increase their prices within the second half of 2022
‘In light of their view of the months ahead, around six in ten survey respondents said that they might be trying to increase prices to stay profitable within the face of upper overheads,’ the Motor Ombudsman said.
Increasing operational costs was highlighted as the largest strain on the sector within the opening six months of the yr, as 4 in five motor repairers said this has now develop into their biggest concern.
The identical proportion of respondents said their bottom line had been hit by the numerous jump in energy and fuel prices in recent months, which look set to proceed rising in 2022.
And the 86 UK businesses responding to the survey said that they had already seen evidence of drivers cutting back on spending on their cars as a part of efforts to limit outgoings in the course of the crunch.
Some 71 per cent of garages and workshops reported a decline in ad-hoc and routine vehicle maintenance and repairs when put next to the primary six months of last yr.
Nine in ten said that they had seen a year-on-year decrease in drivers booking their vehicles in for an annual service, likely in an effort to cut back their outgoings – something the Motor Ombudsman raised concerns about earlier this yr.
Similarly, 58 per cent of companies said that demand had dropped for the topping-up of fluids, resembling oil and air con coolant, with 55 per cent reporting a fall in bookings to interchange ‘wear and tear components’, which incorporates tyres, brake discs and wiper blades.
Some 63% of companies said they may wish to increase their prices to offset higher operational costs
Delays getting hold of alternative parts has also been a serious obstacle in the primary half of 2022, the report found.
Almost three quarters of garages polled said not having components available due to the availability crunch had resulted in lack of business as customers went elsewhere for repairs.
Additionally they said that the primary half of the yr has been quieter than usual for MOTs, which is a knock-on effect of the test extension introduced at the beginning of the pandemic in March 2020.
The six-month exemption – put in place to permit automotive owners with MOTs due imminently to legally delay the annual check-up in the course of the first Covid-19 lockdown – has seen many scheduled MOT dates shift from April, May and June specifically to later months, dramatically reducing footfall for businesses in the primary half of the yr.
A shortage of parts and an enormous shift in MOT schedules brought on by the test exemption introduced in the course of the first Covid-19 lockdown has taken a toll on garages and workshops, the study says
Bill Fennell, Chief Ombudsman, said: ‘Our research has shown that garages and workshops within the service and repair sector have had to administer a mess of economic and economic challenges up to now this yr.
‘With the outlook for the following six months continuing to look difficult, it’s unsurprising that service and repair business owners wish to raise prices to keep up profitability and support staff salaries.
‘This after all all comes during a period when households, that are already under a financial strain, are set to experience even greater pressure from increasing energy costs before year-end, with vehicle maintenance, as shown in our March survey, taking much more of a back seat for a lot of.’
Drivers urged to book MOTs for second half of the yr as early as possible
Demand for MOTs is anticipated to rise sharply from August and drivers are being warned they may must book now to secure a slot if their vehicle is due one next month.
DVSA data obtained by BookmyGarage.com shows that the variety of vehicles due an MOT will surge by as much as 23 per cent within the late summer and into autumn.
The busiest month for MOTs is anticipated to be September, when as many as 770,000 additional vehicles would require a latest test.
In total, nearly 10 million vehicles are expected to wish an MOT during September, October, and November, the report said.
Before the rising demand puts pressure on the UK’s network of certified MOT workshops, BookMyGarage.com is urging drivers to beat the push and to make a booking early.
DVSA records show there’ll likely be an enormous surge in MOT demand in August through to November as a knock-on effect of the 6-month test exemption put in place at the beginning of the primary Covid-19 lockdown in March 2020
Karen Rotberg, co-founder of BookMyGarage, said: ‘We anticipated the dip in demand for MOTs earlier this yr, and searching at the info again, the die has been forged and we’ll see a major wave of vehicles requiring an MOT from August onwards.
‘While September will likely be the busiest month, once we’re into August, garages shall be getting busy and are more likely to put up prices – if drivers book now, nevertheless, they may lock-in that price.
‘Motorists should either aim to get their MOT booked in ahead of when it’s required by one month or just book their MOT prematurely. With the cruel fines and possible penalty points at stake, it’s crucial to avoid letting MOTs expire.’
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