The automotive sector currently stands at a pivotal moment. Caught between a rising cost base, including increases in minimum wage and overhead inflation, and a customer base feeling the pinch of the cost of living crisis, independent workshops are under significant operational strain.
According to Bumper’s Automotive Aftersales Report 2025/26, the primary hurdle for the industry is clear: affordability.
But while the knee-jerk reaction for some garages may be to slash prices to get cars on the ramps, the data suggests that long-term survival relies on transparency, flexible payments, and embracing technology.
Repair costs are currently at a five-year high. Between 2021 and 2025, the average cost of a repair has climbed by 26%, jumping from £473.33 to £597.48.
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Consumer behaviour
Unsurprisingly, this is heavily influencing consumer behaviour. To manage household budgets, drivers are fundamentally rethinking how they maintain their vehicles.
The cost of living crisis is directly impacting decisions for nearly half (47%) of drivers, resulting in several worrying trends for workshop throughput:
– 38% of affected motorists postpone recommended work.
– 37% choose not to authorise non-essential repairs.
– 21% admit to missing scheduled services.
In fact, 51% of service advisors now name “Customer Affordability” as their biggest challenge, according to the report.
Faced with cost-sensitive customers, some workshops may be tempted to lean on an old habit: discounting.
Currently, 74% of main dealer service advisors still offer discounts on repairs and services, and three in ten admit their dealership has a “culture of discounting”.
While this might secure a quick win, it presents severe long-term risks to profitability.
Why discounting doesn't work
Discounting creates a hard-to-break cycle of expectation.
Consider the consumer mindset: 66% of motorists expect an initial discount. 66% expect an equal or greater discount on subsequent jobs. 50% say they would be less likely to return if the discount level drops.
Repeated discounting erodes your margins and can even inadvertently erode the customer’s confidence in your pricing itself.
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If slashing prices isn’t the answer, what is? The data clearly shows that while cost matters, it is not the ultimate deciding factor. When choosing where to service or repair their vehicle, motorists rank trust and reliability (69%) and service quality (65%) above everything else.
To build that trust, garages need to focus on value-led propositions and modern solutions.
Nearly half of drivers (48%) state that being able to split the cost of repairs interest-free is a priority.
In fact, 44% of drivers impacted by the cost of living are already using finance to fund repairs.
By offering flexible payment options upfront, workshops can ease customer anxiety, protect their own margins, and drastically improve the conversion rates of safety-critical “red” and “amber” advisory work.
While affordability is today’s headache, tomorrow’s opportunities lie in technological adaptation.
Service advisors overwhelmingly identify Electric Vehicles (74%) and Connected Car Services (58%) as the biggest growth drivers for 2026.
Interestingly, the data shatters a common industry myth: EV repairs are actually proving cheaper than internal combustion engine (ICE) vehicles.
The average cost of repair for an EV is 19% cheaper than an ICE vehicle (an average saving of £113)
This is driven by requiring 31% fewer labour hours and EV parts costing 23% less.
While faster job times are great for easing workshop lead times, they also mean less revenue per visit, placing even greater importance on long-term customer retention.
Related: Three legal steps to evict abandoned vehicles from your workshop
To manage these shifting sands, main dealers are turning to artificial intelligence at an unprecedented rate.
Just a year ago, only 19% of main dealer advisors were considering AI tools; today, 36% have actually used them in the past year.
From automated scheduling to technical diagnostics support, AI is quickly becoming a cornerstone of operational efficiency.
The independent sector stands to gain the most by remaining agile. By stepping away from the discounting culture, training staff to confidently offer flexible payments, and preparing the workshop for the reality of EV servicing and AI integration, independent garages can turn these industry pressures into a serious competitive advantage.
With 51% of service advisors naming customer affordability as their biggest challenge, are you seeing the same pressures in your own workshop? Share your comments below.
