There’s been a 47 percent rise in the number of independent garages and repairers seeking additional funding.
The cost of living crisis has put severe pressure on garages, which have also been hit by rising energy costs, higher labour rates and the need for investment in skills and equipment.
Andrew Raphaely, managing director of 365 Finance, said: “The increase in garages and MOT centres applying for alternative finance is down to numerous factors, including the ongoing higher costs associated with running any business right now, but also the need to periodically purchase new equipment and stock, along with maintaining and updating premises.”
In January, a Norwich garage owner told the Eastern Daily Press that his workshop costs had increased by 30-40 percent, but prices had increased by just 10 percent.
Shawn Taylor, owner of STR Service Centre, said: “You can only pass on the cost to customers so much before you price yourself out of the market,“ he confessed, “but the truth is we’re barely breaking even right now.”
Source: Bodyshop Magazine
