Home Money Your car repair costs will rise even further in 2025, automotive experts warn

Your car repair costs will rise even further in 2025, automotive experts warn

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Cars spend more time in garages due to lack of trained mechanics, MotorEasy tells This is Money

Cash-strapped motorists are finding it increasingly difficult to cover the cost of repairing their cars, the Motor Ombudsman’s latest annual survey of vehicle repairers has found.

The high cost of living combined with high repair costs due to component shortages and inflation are forcing drivers to make difficult decisions to delay maintenance and repairs.

Most motorists skipped at least some services and repairs last year to save money, a worrying new survey has revealed, and even more are expected to do the same this year.

Meanwhile, 56 per cent of garages told the Motor Ombudsman they expect motorists to delay vital repairs to avoid costly bills this year, as 2025 brings even higher costs and more difficult decisions for drivers.

While delaying repairs and maintenance will save money in the short term, not only can costs skyrocket in the long term, it can also put people in danger.

We’ve spoken to automotive industry experts to get an idea of ​​the auto repair climate drivers face this year.

Cars spend more time in garages due to lack of trained mechanics, MotorEasy tells This is Money

Why are repair costs increasing in general?

In addition to economic pressures and inflation, the Motor Ombudsman points to some reasons why car repairs are particularly high: the current shortage of components together with inflationary pressures.

Motoring association MotorEasy also pointed to “supply chain issues” and a “lack of qualified engine technicians in workshops”.

CEO Duncan McClure said: “It is not just the availability of parts that is delaying work, but the technical aspects of shipping items such as electric vehicle batteries, which are hazardous cargo, are also impacting delivery times. delivery”.

These financial pressures and logistical problems are causing, in some cases, higher prices to be passed on to motorists.

Guaranteewise told This is Money that its “data shows that average repair request costs are increasing with inflation (from 2023 to 2024) due to increased parts and labor expenses, so certain manufacturers and parts incur higher costs.

Are electric cars increasing repair costs?

MotorEasy noted that electric cars can cause delays in repairs and increase costs if many garages are still unable to repair them.

MotorEasy noted that electric cars can cause delays in repairs and increase costs if many garages are still unable to repair them.

MotorEasy explained: ‘Because hybrid and electric vehicle technology advances at such a pace, solutions are often not fully documented or widely understood.

‘This often means we must refer repairs to major manufacturers’ dealers rather than traditionally more profitable independent workshops.

‘The cost increases further as manufacturers’ distributors seem more inclined to replace entire units than to repair component parts. This, in turn, is associated with increased delays and uncertainties when battery replacement requires shipment as dangerous cargo.’

Why is 2025 expected to be even more expensive for car owners?

Some 52 percent of shops expect repair costs to increase due to ongoing component shortages and inflation, meaning financial pressure on working families will intensify.

While most shops will probably have to pass some costs on to customers, many are trying to absorb the costs as much as possible.

In fact, 42 per cent of businesses told the Motor Ombudsman that they are committed to absorbing this increase in costs to help protect consumers’ bank accounts.

Roger Griggs, communications director at Kwik Fit, confirmed this to us, saying: “Like any other industry, the auto repair sector is affected by inflation, but we support customers by absorbing increases where we can.”

Do motorists avoid having their car repaired?

By putting off maintenance, car owners can suffer aggravated mechanical problems that require more expensive repairs and a higher risk of breakdown.

By putting off maintenance, car owners can suffer aggravated mechanical problems that require more expensive repairs and a higher risk of breakdown.

Avoiding high repair costs can have serious long-term consequences.

In 2024, 53 percent of companies reported that customers were not performing routine car maintenance, such as servicing, to save money.

Kwik Fit found that its research “reflected the themes of the Motor Ombudsman report” and that “the economic climate had affected the planned driving expenses of more than half of all drivers”.

Kwik Fit found that included measures taken to reduce costs; “delay purchasing a newer model, skimp on maintenance, or switch to cheaper replacement components.”

Garage owner and star of TV series Dave’s Repair Lot, Hannah Gordon, told This is Money: “We’ve found a reduction in the number of people carrying out repairs.” To save money, they often ask for minimal repairs just to get their vehicle through its MOT or back on the road.’

Hannah Gordon says:

Hannah Gordon says: “To save money, people often ask for minimal repairs just to get their vehicle through its MOT or back on the road.”

Not only could postponement lead to significantly higher costs in the future, the Motor Ombudsman warns, but critically, it could put vehicle owners and occupants, as well as other people, at risk.

By putting off maintenance, car owners can suffer aggravated mechanical problems that require more expensive repairs, lower fuel efficiency resulting in higher running costs, along with an increased risk of breakdowns, which could result in costly emergency repairs and towing fees.

The RAC has found that it is “unsurprising that younger drivers” are the “most affected”: 26 per cent of those surveyed last year, aged 17 to 24, told the RAC that they had deliberately postponed paying taxes. vehicle repairs due to cost. life crisis.

Some drivers will go even further than simply postponing: 28 percent of repairers predict that customers will abandon their cars at shops if the work is too expensive or if it becomes uneconomical to repair the vehicle.

However, Guaranteewise told us that “while we don’t see rising prices preventing our customers from keeping their vehicles, we do see them spending more carefully.”

How can I save money on car repairs?

Regarding the warranty:

“It encourages clients to choose wisely, as certified independents can charge significantly less, sometimes three or four times less.”

Quick adjustment:

‘We encourage all drivers to carry out regular checks and perform preventive maintenance. These include checking pressures to extend tire life, checking wheel alignment to ensure even tire wear, and refilling fluids such as oil and coolant to keep the engine running smoothly.

It’s worth noting that if drivers don’t feel confident carrying out these checks themselves, there are a number of places that will offer a range of free checks, including Kwik Fit and Halfords.

EasyMotor:

“Savvy motorists who have taken up an extended warranty program will protect themselves from short-term increases and arm themselves against potential unplanned repair costs.”

Are motorists keeping their cars longer due to rising costs?

68% of garages say customers tend to keep existing cars for longer to avoid paying for a newer model, but this is not always a good idea, experts warn.

68% of garages say customers tend to keep existing cars for longer to avoid paying for a newer model, but this is not always a good idea, experts warn.

The Motor Ombudsman’s survey has revealed that drivers are keeping their vehicles for longer due to financial pressures.

In a sign of the times, 68 percent of garages said customers tend to keep existing cars for longer.

For many, foregoing the cost of newer or more expensive models may seem like a sensible financial move, but this also makes taking care of an older vehicle essential, to avoid unwanted breakdowns, part failures and rising bills.

The Continuing Trend of Expensive Auto Repairs

This time last year, This is Money reported that 2023 was a record year for auto repair costs.

“The cost of repairs increased by 32 percent in the third quarter of 2023 to a quarterly record of £1.6 billion,” confirmed a spokesperson for the Association of British Insurers.

Rising operating costs, taxes and energy are the top three factors, with rising spare parts costs and labor shortages rounding out the top five.

Hannah Gordon said: “The automotive sector, like all sectors, is struggling with rising costs across materials, utilities and wage costs.

Do high repair costs increase insurance premiums?

Vehicle repairs require large amounts of energy and, unlike homes, businesses are not entitled to any government support.

As an example: Gas and electricity bills for auto repair shops increased a staggering 300 percent in 2023, with shops paying the full price.

The average energy cost per repair was £70.

Insurers can’t absorb all of this, so it is passed on to consumers in the form of higher premiums.

Three home maintenance tips from a mechanic

Remember to check all your fluid levels such as oil and water at home.

Remember to check all your fluid levels such as oil and water at home.

Mechanic, shop owner and star of Dave’s Repair Lot Hannah Gordon’s Top Tips:

1. Check all your own fluid levels to make sure the car has enough oil and water (electric vehicles require fewer checks, but you should still check screen wash and brake fluid)

2. Check your tires: tread depth, damage and correct inflation pressure (for safety and to help save money on fuel)

3. Check your light bulbs and wipers – it’s easy to save money on small repairs like these and there are plenty of YouTube videos to help you

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