{"id":59787,"date":"2025-01-31T10:54:15","date_gmt":"2025-01-31T10:54:15","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/biggest-challenges-facing-motor-trade-garages-in-2025\/"},"modified":"2025-01-31T10:54:15","modified_gmt":"2025-01-31T10:54:15","slug":"biggest-challenges-facing-motor-trade-garages-in-2025","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=59787","title":{"rendered":"Biggest Challenges Facing Motor Trade Garages in 2025"},"content":{"rendered":"


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The motor repair industry is steering straight into a \u201cperfect storm\u201d of challenges in 2025. Rising operational costs, hesitant consumers, and a skilled labour shortage are creating a bumpy road ahead for independent garages and franchise workshops alike. <\/h3>\n

According to the latest Motor Ombudsman survey<\/a>, these pressures are driving significant uncertainty for repair businesses. Let\u2019s have a look at the key issues, survey findings and how garages can navigate them.<\/p>\n

Rising Repair Costs<\/h4>\n

It\u2019s no surprise that escalating operational costs top the list of concerns for 89% of repairers, up from 75% last year. With energy prices rising after the January 2025 cap hike and general inflation adding to the squeeze, garages are feeling the pinch. Factor in higher vehicle parts costs (predicted by over half of businesses), and the financial pressure is mounting.<\/p>\n

Yet garages aren\u2019t rushing to pass on these rising costs to their customers. About 42% of repairers are holding back from passing on the full burden, acknowledging that many households are already struggling. This balancing act is commendable, but it comes at the expense of already tight margins.<\/p>\n

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If cost of insurance is a concern for your motor trade garage our e<\/a>xpert motor trade insurance team<\/a><\/strong> will be able to perform a thorough review of your policies. This will ensure the suitable of your protection and competitiveness of your motor trade insurance premium.<\/em><\/p>\n<\/div>\n<\/div>\n

Consumer Cost-Cutting<\/h4>\n

It seems motorists are adopting their own cost-saving measures. The survey found that 56% of garages expect consumers to delay essential repairs, while 48% foresee fewer routine maintenance bookings. This trend could mean quieter workshops in the short term but poses risks for vehicle safety and long-term repair needs. It\u2019s a case of \u201cfix later, pay more,\u201d but its a difficult message to land to someone already struggling to make ends meet.<\/p>\n

Recruitment Struggles in the Motor Repair Sector<\/h4>\n

Staffing shortages are the proverbial spanner in the works. Nearly half of garages (48%) cited recruitment as a significant hurdle, with 55% increasing wages in 2024 to attract skilled technicians. Despite these efforts, finding qualified staff remains a challenge. The motor repair industry needs to gear up for a long-term solution to attract new talent.<\/p>\n

The EV Maintenance Impact<\/h4>\n

Electric vehicles are both a blessing and a challenge. With fewer moving parts, EVs require less routine maintenance, which is great news for consumers but less so for garages. Only 21% of garages expect EVs to significantly contribute to their income in 2025, down from 26% in 2024 and 32% in 2023. While the shift to EVs aligns with a greener future, garages will need to adapt their training procedures along with their revenue models to offset the reduced maintenance demand.<\/p>\n

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If your business buys, sells, repairs or modifies vehicles then Plan Insurance Brokers can source a tailored <\/strong>Motor Trade insurance policy<\/span><\/strong><\/a> for you. If you have any more questions or would like a quote call our expert team, request a call back<\/span><\/strong><\/a> or <\/strong>fill in a quote form<\/span><\/strong><\/a>.<\/strong><\/p>\n

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From: The Motor Ombudsman<\/a><\/figcaption><\/figure>\n

Strategies for Resilience<\/h4>\n

Amidst the storm clouds, many garages are taking proactive steps to future-proof their businesses. The survey highlights some encouraging trends:<\/p>\n