Rising garage labour costs have been steadily increasing over the last two years, with pressures coming from every direction. There isn’t a specific single cause; it’s a mix of higher wages, growing demand for EV skills and the continued impact of inflation. This means that workshops are doing all they can to stay competitive while also delivering safe and reliable repairs.
As a landscape, this can feel difficult to navigate. As well as rising costs, customers are becoming more cautious about spending money on their vehicles. Repair bills are climbing, and many people take longer to approve car repair quotes than in the past. Some even delay the work entirely.
The Real Picture Behind Rising Garage Labour Costs
The UK has seen clear and consistent growth in garage labour costs. Industry data shows that average rates rose by over 7% in 2023, followed by another lift last year. Invoice values have also increased, which means the overall cost of getting a car fixed is higher than it was even a year ago. Many dealerships are absorbing costs as much as they can, but it’s becoming harder to do so if the quality of the work isn’t going to be impacted.
The UK skills shortage is reshaping the industry.
The UK skills shortage is impacting garage labour costs. Technician demand is still high, but the number of qualified workers has not kept pace. The sector reports thousands of vacancies each year, and many remain unfilled for months.
The shift towards EVs adds pressure in this regard. Only a minority of technicians hold high-voltage or EV qualifications. The training required is significant, and the equipment is expensive. Many independent workshops struggle to take on the costs and the time involved. This makes EV-ready technicians more valuable, which naturally pushes up mechanic labour rates.
Inflation and everyday costs are still biting.
Inflation has affected every household and business in the UK. The automotive sector is no exception. Workshop, rent, tools, parts, utilities, and insurance have all increased. Many garages have seen their cost base climb faster than they can increase their prices. A growing number of workshops also face higher wage bills due to increases in the National Living Wage. Skilled workers require more pay, and entry-level roles are more expensive to fill.
How Are Customers Reacting to Higher Car Repair Quotes?
Customer behaviour has changed a lot. As discussed above, many people now put off repairs for longer and prioritise the most important, urgent jobs. Service schedules are skipped more often, and more drivers rely solely on the annual MOT.
Some drivers also reduce optional work like new tyres, air-con servicing, or advisory repairs. This has a direct effect on workshop revenue, as you aren’t getting the turnover from regular amber work. It also increases the risk of breakdowns and avoidable damage.
Consumer Duty and Fair Treatment Matter More Than Ever
As costs rise, there’s a growing responsibility on garages and dealerships to treat customers fairly and support better decision-making. Consumer duty isn’t about pushing people into repairs they can’t afford. It’s about giving customers time and flexibility to decide without pressure, while still making sure vehicles are repaired safely and properly.
Helping customers manage costs responsibly is becoming part of good workshop practice. Clear explanations, transparent pricing, and payment options that remove urgency all play a role. When drivers feel supported rather than rushed, they’re more likely to approve essential work and less likely to delay repairs that affect safety.
Supporting safe repairs while treating customers fairly is crucial. For many businesses, that balance is now central to building trust, protecting long-term relationships, and doing the right thing in a tougher cost environment.
What Can Dealerships Do to Manage the Situation?
Communicate clearly.
The recent increase in garage labour costs makes it more important for dealerships to communicate in a way that’s fully clear and provide practical support. Transparency around pricing is a big part of this; it’s one of the strongest tools available. Most people still view labour time as a simple hourly block, but modern repairs don’t always work that way.
Jobs vary depending on the make, model, and age of the vehicle, and the equipment required to carry out the work safely. EVs and hybrids need extra checks, and many other repairs involve specialist tools, training, and processes that customers don’t see.
When these details are explained in plain language, the value becomes clearer. This helps people understand why mechanic labour rates vary and makes approval of car repair quotes more straightforward. It also reduces misunderstandings and builds trust.
Flexible finance can help.
Alongside clearer pricing, flexible payment options can make a real difference. High repair bills put pressure on households, and many drivers struggle to pay the full amount up front. Some even delay essential work because of the cost. Offering interest-free instalments helps remove this barrier. It gives customers the space to manage an unexpected repair without having to panic, while allowing the work to go ahead safely and on time.
It also supports a steadier workflow inside the workshop. This leads to quicker approvals and fewer delayed jobs. Spreading the cost over several months can keep drivers on the road and reduce hesitation around bigger bills.
Looking for Ways to Reduce Customer Hesitation?
Flexible, interest-free payments can help your customers approve work sooner and reduce the impact of garage labour costs on your clients. We work with repair centres across the UK to offer simple ways to spread the cost of repairs and servicing. Drivers can spread the costs over monthly instalments, which is a great way to reduce hesitation, improve approval rates, and keep vehicles safe on the road.
If you want to offer a simpler way for your customers to manage repairs, sign up for Payment Assist today or get in touch to find out more.
FAQs
Why do garage labour costs vary between regions?
Local wages, workshop rent and the availability of skilled technicians all affect regional rates.
Why do EV repairs sometimes cost more?
They don’t always, but sometimes EV work requires high-voltage training, specialist tools and stricter safety steps.
Are customers still delaying repairs because of cost pressures?
Yes. Many people wait longer before approving repairs, especially when bills are higher than expected. That’s why flexible finance is a great way to help your customers say yes.
How can a workshop explain mechanic labour rates more clearly?
Try to give simple explanations, clear time estimates, and a breakdown of the work. These can help customers understand the value behind their car repair quote.
Further Reading
- How Payment Assist’s Car Repair Payment Plan Helped J Petty Motors
- Why Are Young Driver Repairs Being Delayed?
- Payment Assist Partners with Purchase Direct to Bring Interest-Free Car Repair Finance to Millions
- Managing Increasing Car Repair Costs for Your Customers
Unexpected repair bills are one of the biggest sources of stress for drivers. Research has shown that over two-thirds of drivers have been hit by unforeseen car repairs over the last couple of years, and that 52% of drivers cite cost as the main reason for delaying these important jobs. For dealerships, that means lost work and lower turnover. This is the exact challenge that J Petty Motors wanted to solve.
Why J Petty Motors Turned to Payment Assist
J Petty Motors first heard about Payment Assist’s car repair payment plan when the opportunity was brought to them directly. It was a simple pitch, a way to offer car repair monthly payments without interest or hidden fees, and with no lengthy approval process. The garage recognised that giving drivers the option to pay later for car repairs could make a big difference, especially when substantial bills landed at the wrong time.
They agreed to trial it, and the results quickly showed that it was much more than a simple car service finance tool.
Flexible Support for J Petty Motors’ Customers
This was one of the biggest wins, as they were now able to give their customers breathing space. When a repair bill lands, drivers can feel cornered, but with the option of simple monthly payments on the table, they can break down the cost into manageable instalments.
Some of J Petty Motors’ customers have used Payment Assist repeatedly.
According to the drivers, the fact that our car repair payment plan was quick and straightforward to set up made it really attractive. A link is sent via text or email, and customers handle the process with minimal hassle. It gives them total control and clarity, which is exactly what most people want.
As J Petty Motors explained, there can be a little scepticism at first. People are wary of financial schemes and assume there’s a catch. But once they see how smooth and transparent the process is, the feedback is overwhelmingly positive.
Securing Jobs that Might Have Been Lost
For garages, a missed job is a missed opportunity. When a customer can’t afford a bill upfront, they might delay, shop around, or just walk away and risk it. J Petty Motors found that Payment Assist was the perfect solution to that challenge. By offering car repair monthly payments, they were able to secure jobs that would otherwise have gone elsewhere. The most noticeable impact is on higher-cost repairs. Instead of losing work due to price sensitivity, the garage can keep cars on the ramp and customers on the road.
Building Customer Loyalty
One of the standout effects of offering car repair payment plans has been the loyalty it encourages. This is something we’ve spoken about before, and it’s definitely a benefit that J Petty Motors has noticed, too. Customers who use Payment Assist have often returned to do so again, knowing they’ve got an option that fits their budget if something goes wrong again.
In a sector where trust, word-of-mouth, and repeat business are incredibly important, having loyalty like this is invaluable. J Petty Motors has seen drivers come back time and again, doubtless reassured by the flexibility of spreading the cost.
Simple Setup and Easy Process
From the garage’s perspective, getting started with Payment Assist couldn’t have been easier. The setup is minimal, requiring only a handful of details. This makes it practical for garages and dealerships of all sizes. There’s no complex training required and no drawn-out onboarding process, so your daily operations aren’t disrupted. J Petty Motors found that Payment Assist fitted easily into the way they worked and quickly became second nature for their staff to offer.
Want to Boost Your Offerings with a Car Repair Payment Plan?
Our work with J Petty Motors has shown how powerful flexible payments can be in winning work that might otherwise slip through the net. When you give drivers the choice to spread the cost of servicing or repairs, you secure more jobs and increase repeat custom and loyalty. Customers get peace of mind, and your business gets a steadier, more reliable income stream.
Setting up Payment Assist’s car repair payment plan takes minutes. There’s no hidden interest and no lengthy onboarding; it won’t disrupt how your team already works, either. Get in touch with Payment Assist if you’ve got any questions, or sign up online today.
FAQs
How quickly can my dealership get set up with Payment Assist?
It only takes a few minutes to get started. Fill out a short form, and then receive a link to finish the process on your own device.
Is it difficult for garages to integrate Payment Assist?
No. The process is designed to be straightforward and should slot easily into your workflows.
What happens if a customer misses a payment?
The customer remains responsible for their payments, but we communicate directly with them to resolve the issue. Your dealership still gets paid, and there’s no extra hassle for you.
Is Payment Assist only for major repair jobs?
No, there’s no minimum cost for Payment Assist. This means it’s the perfect way to pay later for major car repairs, as well as a way to access routine car service finance.
Further Reading
- Payment Assist Partners with Purchase Direct to Bring Interest-Free Car Repair Finance to Millions
- Managing Increasing Car Repair Costs for Your Customers
- Payment Assist & Car Care Plan Partner With Nissan to Launch Nissan Instant Service Plan
- How Buy Now Pay Later Boosts Dealership Customer Retention
Skipping a service or repair can feel like a quick win when money is tight. Plenty of drivers, especially younger ones, see it as a way to save in the moment, but breaking down the long-term numbers tells a very different story. If a driver chooses to put off a job today, it means that it’s likely to cost them far more down the line.
It’s a common problem, too, with estimates that 1.3 million UK motorists are driving without an up-to-date car service. Over a third of people in their mid-twenties to early thirties also admit to skipping a service. That figure drops to roughly 1 in 7 in drivers over the age of 65. But why are young drivers delaying car repairs, and how can they avoid them?
What’s Driving the Delay in Young Driver Repairs?
When you look into the data, the same three reasons for delaying car repairs crop up time and again.
Car Repair Costs
This is by far the biggest factor. Most young people don’t have a car repair fund to dip into for preventative maintenance, which leads to them risking it by pushing back a service or so-called ‘amber work.’ This is an area where flexible car repair finance solutions like Payment Assist can make a huge difference. Find out more here.
Hassle & Inconvenience
RAC polling found that over a quarter of drivers say servicing and repairs are too much of a faff. It means losing your car for a day or two, and organising alternative transport to work or uni, as well as potentially rearranging childcare.
Lack of Understanding
MOT rules have changed of late, and plenty of young drivers admit that they’re not sure what needs doing and when. Some wait until the dashboard lights up or the car fails an MOT before sorting anything. By then, a small job has often turned into a big one.
What Happens When You Delay Car Repairs?
A car doesn’t fix itself. Miss out on car servicing or ignore a minor fault, and you’ll usually end up with something much worse. Tyres are a good case in point here, and it’s an even more prominent issue as Britain’s pothole problem continues to worsen.
Only 39% of UK drivers know the legal tread depth (which is 1.6mm), and over 2 million MOT failures happen every year because of tyre defects, which makes them the most common reason for failure in the UK. Half of these are classified as dangerous.
To counteract this, TyreSafe launched a young driver campaign to raise awareness of the issue. They’ve highlighted some important key messages, like the fact that just two illegal tyres can bring a six-point penalty loss and a huge fine. For younger motorists, this can mean starting again from scratch.
TyreSafe are also encouraging people to look out for early warning signs like low tread or poor inflation. The aim is to give drivers, parents, schools, and instructors the tools to build safer habits and avoid high car repair costs and legal penalties.
How Young Drivers Can Stop Car Repair Costs Escalating
As we’ve already mentioned, nipping any minor jobs and car servicing in the bud is crucial. Beyond that, there are some easy regular checks that motorists can do to minimise the chance of expenses snowballing.
TyreSafe recommends the ACT check for tyres (that’s: Air pressure, Condition, and Tread). Try to do it once a month, or whenever you fuel up. It takes a minute or two, and can prevent an MOT failure or worse.
There are also online MOT reminders that drop you a text or email to stop you forgetting your MOT date. Then, once your car’s being checked, it’s important to listen to the advisories. If your mechanic flags something with you, deal with it sooner rather than later if you want to save money in the long run.
A Quick Checklist for Younger Drivers
- Don’t skip regular car servicing, even if money feels tight.
- Watch for small faults and sort them early.
- Do the ACT check on your tyres once a month.
- Use MOT reminders and don’t ignore advisories.
- Ask garages about collection or mobile services to avoid hassle.
- If you can’t afford a bill, split the cost with car repair finance.
Need to Spread Your Car Repair Costs Without Delaying?
Young driver repairs don’t need to knock you off the road. With Payment Assist, you can split car repair costs into monthly instalments. The first payment is made at the garage when the work’s done, and the rest are split with no interest, set-up fees, or catches.
Our platform is helping people with repairs and car servicing across the UK; it’s already in use at thousands of trusted garages. Use our merchant finder to locate your nearest garage offering Payment Assist, and get essential work done straight away without the financial strain. If you’ve got any questions, feel free to get in touch with our team today.
FAQs
How often should I book car servicing in the UK?
Every 12 months or 12,000 miles is the rule of thumb, whichever comes first.
Are young driver repairs usually more expensive?
Not always, but newer drivers can face higher car repair costs if they buy older cars that need extra care.
Can delaying car repairs affect resale value?
Yes, missing service history or visible wear will lower the price when selling or part-exchanging your car.
How do I know if my car needs repairing?
Unusual noises, dashboard warnings, vibrations, or changes in handling often point to underlying problems.
Further Reading
- Budgeting for the Total Cost of Running a Car
- Why Drivers Delay MOT Fixes & How 0% Car Repair Finance Can Help
- What to Do When You Get an Unexpected Car Repair Cost
- Why Are Car Repair Costs Higher in the Winter?
In the UK, people are hanging on to their cars longer than ever. The average lifespan of a car on British roads has reached nearly ten years, the highest figure on record. A decade ago, cars were usually sold or scrapped at about seven and a half years old.
Firstly, generally speaking, modern cars are more reliable. If you keep on top of your car’s maintenance, a modern engine can rack up well over 100,000 miles without giving in. The biggest driver, though, is likely the cost of living. When viewed as a proportion of income, new car prices have increased year on year. With the added pressure of higher household bills, many drivers just can’t justify the cost of replacing a working car.
Keeping a car for longer can be the right move for your pocket, particularly in the short term, but there are definitely challenges that come with it. Older cars have a higher risk of breakdowns, and the car repair costs grow, too. So, what are the best ways to manage the cost of repairs on older cars?
Why Older Cars Stay on the Road
There are a few reasons for this. Firstly, generally speaking, modern cars are more reliable. These days, they’re built with better technology and last longer than they used to. Engines are more reliable, bodywork tends to hold up better, and safety systems are much tougher. This means that drivers see less reason to sell or scrap a vehicle if it’s still running well.
The biggest driver, though, is likely the cost of living.
The biggest driver, though, is likely the cost of living. When viewed as a proportion of income, new car prices have increased year on year. With the added pressure of higher household bills, many drivers just can’t justify the cost of replacing a working car.
There’s also hesitation over electric cars.
The government has shifted its plans for banning petrol and diesel sales more than once. Until there’s some level of clarity and consistency, drivers are more likely to hang on to their petrol or diesel cars rather than spend heavily on something new.
What’s the Financial Reality of Older Cars?
Older cars can be a pretty good deal if you’re not tied into finance payments, but car repair costs are an unavoidable part of ownership. Around six in ten UK drivers faced an unexpected repair in the past year, and the average bill comes in at just over £600. For a lot of households, that’s a big hit.
Younger drivers in particular struggle.
Almost half of under-25s say they would find it hard to pay a £500 repair bill. Some drivers have also admitted to skipping services or delaying essential jobs because of cost. The problem here is that small issues quickly snowball. Driving on bald tyres or ignoring brake warning lights might save money in the short term, but it almost always leads to a bigger bill later.
The reality is that as the lifespan of a car stretches, the likelihood of costly car repairs rises. The common jobs for nine to ten-year-old cars are often expensive, too, things like replacing brakes, tyres, batteries, exhaust systems, and suspension parts. More serious failures, like clutch or gearbox problems, can easily push bills over £1,000.
Try to Stay Ahead of Maintenance
The best way to manage costs on an older vehicle is to do your best to stay ahead of problems. Keeping up with car maintenance means that, most of the time, you can avoid the worst breakdowns. Regular servicing really helps here. If you keep to the service schedule, mechanics can catch minor issues before they become disasters.
Even if money is tight, do your absolute best not to ignore MOT advisories. These are flagged for a reason, and acting on them as soon as possible is safer and cheaper than letting them fail completely.
Want to Extend the Lifespan of your Car? Flexible Car Repair Finance Can Help.
Not every driver has spare cash tucked away, and sometimes repairs come at the worst possible moment. That’s where 0% car repair finance services like Payment Assist can make the difference. It’s designed for drivers who need their cars back on the road straight away but can’t afford the upfront cost all at once.
We know how tough unexpected repair bills can be, especially with the rising cost of living. Our platform helps you to split the bill into interest-free payments so you can get your car repairs sorted early, before they spiral into more expensive issues that might impact the lifespan of your car. There are no fees or hidden charges, and most plans don’t even require a credit check.
With thousands of garages across the UK offering Payment Assist, it’s easy to find a merchant near you. You can learn more about what we offer here or get in touch with any questions.
FAQs
Do older cars fail MOTs more often?
Yes. Numbers from the DVA show that cars over ten years old are much more likely to fail an MOT, mainly failing on areas like brakes, tyres, suspension, or emissions.
Is fuel efficiency worse as a car ages?
It can be. Engines and components wear over time, so efficiency can drop. Keeping up with servicing and part replacements can help you maintain good fuel efficiency.
Are older cars reliable for long trips?
Yes, but (like any car) they’ve got to be well maintained. Lots of drivers take older cars on long motorway runs without issues, but a pre-trip check of tyres, fluids, and brakes is recommended before covering high mileage.
What’s the most expensive repair job on older cars?
Gearbox and engine rebuild are usually at the top of the list. Sometimes they can run into thousands of pounds. Without flexible car repair finance, these costs can be really difficult to manage.
Further Reading
- Budgeting for the Total Cost of Running a Car
- What’s Driving Growth in the Used Car Market?
- What to Do When You Get an Unexpected Car Repair Cost
- Why Are Car Repair Costs Higher in Winter?
When something goes wrong with your car, the bill is what really matters. Knowing which jobs sit at the top end of the scale, and which are more common car repairs, is a good way to prepare for the unexpected. It also helps to establish where car repair finance can take the sting out of costs when they land at the worst possible time.
1. Engine Repairs
Nothing makes a driver wince quite like engine repairs. A complete engine replacement is one of the most expensive fixes on the road. For a standard family car, you could be looking at £1,500-£5,000. In many cases, the cost of car repairs at that level outweighs the value of the vehicle itself. Some owners choose to scrap or sell rather than pay out, but that’s not always an option if you need a working car quickly.
Head gasket issues also fall under engine repairs that hit the wallet hard. Replacing a blown gasket costs £662 on average, but in theory it can stretch much higher depending on the car. It’s one of those problems that can escalate really easily if ignored, too, often leading to full engine failure. Spotting the early signs of overheating or loss of power and sorting it quickly can save a fortune.
2. Electric Car Repair Jobs
Drivers making the switch to electric are saving money on fuel and routine servicing, but the increased cost of repairs is something to keep an eye on. The traction battery is the single most expensive part in an EV. Replacing one averages about £7,200, which is eye-watering. The good news is that these batteries are built to last for years. The bad news is that if one does fail outside warranty, the bill is huge.
3. Transmission & Clutch Repairs
Gearboxes are high on the list of expensive jobs. Manual gearboxes usually cost somewhere between £500 and £2,500 to repair or replace. Automatic gearboxes tend to be more complex, so the price can easily run to £5,000 for certain makes. Regular servicing and driving smoothly can extend gearbox life, but when one fails, the cost of the car repair is usually high.
Clutches are another repair that often crosses into four-figure territory. The average clutch replacement in the UK is anywhere between £500 and £1000. If the flywheel is damaged as well (which isn’t uncommon), the bill rises further. For city drivers constantly in stop-start traffic, clutch wear comes sooner and makes this one of the more common car repairs people need over a car’s lifespan.
4. Catalytic Converters & Fuel Systems
Catalytic converters are built with precious metals, which makes them really expensive to replace. A failed or stolen unit can cost up to £900. Rising theft rates in some regions add to this risk. Keeping your car parked in well-lit or secure spots helps, but if you are unlucky enough to need a replacement (and it’s not covered by your insurance), then it’s a serious hit to the wallet.
Fuel injectors can also rack up car repair costs.
They can cost up to £350 per injector. As modern engines rely on precise fuel delivery, even one faulty injector can cause major running issues, so garages often recommend replacing them all together. Using decent quality fuel and servicing the system can stretch their lifespan.
5. Mid-Range, but Still Painful
Not all jobs run into the thousands, but even repairs in the hundreds can come as an unpleasant surprise.
Alternators
The unit that charges your battery and powers electrics often costs £150 to £300 to replace. In rare cases, premium cars can climb towards £1,000.
Starter motors
When they fail, a replacement usually sits around £200. Not the worst bill, but still one of those that often comes out of the blue.
Suspension parts
Replacing a pair of coil springs might cost about £225. Shock absorbers can be in a similar range. These are safety-critical, so delaying them is never a smart move.
6. Lower-cost Common Car Repairs
Plenty of jobs come in at the lower end of the scale. These repairs are often classed as wear and tear, so while they happen more regularly, they can be easier to manage.
Brake pads
Replacing front pads usually costs around £127, with rears about £121. That means roughly £250 for a full set. Discs usually cost more.
Batteries
Standard 12V batteries in petrol and diesel cars cost £50 to £150 for most models. They are straightforward to fit, and many garages will swap one in minutes.
Bulbs and fuses
Headlight bulbs can cost as little as £21 to replace, and fuses even less. These are the cheapest fixes most drivers will ever face.
Wiper blades
Often around the £10 mark, they are easy to change yourself and keep visibility clear.
Struggling with the Cost of Car Repairs? Try Our 0% Car Repair Finance.
That’s where Payment Assist steps in. We make car repair finance simple. You can split your bill into monthly payments to remove the pressure of that huge, up-front bill. It’s interest-free and there aren’t any hidden costs or minimum spends. That means you can use Payment Assist for common car repairs like brake pads or bulbs, as well as for big engine repairs or gearbox failures.
Our solution is already in use with garages and dealerships across the UK. If you want to see how it could help you handle the cost of your car repairs, find a merchant near you today. Or, for more information, get in touch with our team here.
FAQs
How do I know if the cost of a car repair is fair?
Get at least two quotes from different garages, or check online guides like the RAC or Which? for average repair costs.
Why does the cost of a car repair vary so much between garages?
Labour rates, parts quality, and the type of garage all make a difference. City garages often charge more due to higher overheads.
Do electric cars cost less to service overall?
Yes, in general. EVs tend to have fewer moving parts, so routine servicing is cheaper. That said, when something major does go wrong, the cost of the car repair can be much higher than with petrol or diesel cars.
What should I do if I can’t afford an urgent car repair?
The best option is to find a garage that offers flexible financing like Payment Assist. That way, you can get 0% interest finance and split the cost of your car repair into instalments without hidden fees.
Further Reading
- Budgeting for the Total Cost of Running a Car
- What’s Driving Growth in the Used Car Market?
- What to Do When You Get an Unexpected Car Repair Cost
- Why Are Car Repair Costs Higher in Winter?
Payment Assist can now announce a partnership with procurement group Purchase Direct to deliver a Buy Now, Pay Later (BNPL) solution across the UK’s franchised dealer network. This collaboration makes it easier for drivers to spread the cost of their repairs with zero fees and interest-free monthly payments, which simplifies transactions.
It’s a partnership that’s mutually beneficial. Dealerships benefit from a greater level of operational efficiency, and drivers get an easier way to manage the cost of keeping their car roadworthy.
Why it Matters for Car Dealerships
Dealers are set to gain a lot from the partnership. Unexpected repairs are often where customers hesitate to go ahead, and if repair centres are able to offer flexible payment terms delivered through a simple platform, they can increase amber work conversion and boost retention.
Because the Payment Assist system plugs straight into Purchase Direct’s payment platform, it also enhances transaction reporting. Businesses can expect to see a reduction in the time spent chasing payments, which reduces administrative burden and improves operational efficiency.
Why This Matters For Drivers
Unexpected repairs are a financial burden on drivers across the UK. Often, such repairs can be highlighted during routine checks like MOTs, presenting motorists with a bill they hadn’t been able to budget for. For jobs like brakes, tyres, and suspension, immediate attention is usually required, which makes access to interest-free car repair finance crucial.
It is in this context that partnering with a procurement group like Purchase Direct makes a tangible difference. Instead of being met with the total repair cost up front, drivers can now spread the cost of car repairs across monthly payments with no added fees or hidden interest. It provides a simple, transparent solution that ensures drivers do not have to choose between road safety and affordability.
Purchase Direct’s simple, ergonomic payment platform already supports almost two-thirds of the franchised dealer network, so the flexible payment option is directly available at the point of payment. The process is simple to use, offering motorists a clear box-tick to choose monthly payments instead of a single bill.
Voices From The Partnership
“Adding Payment Assist technology to our dealer platform is an important step forward. Consistent growth in the BNPL sector shows there is customer demand, and dealer interest is high, thanks to the promise of increased revenue. Ultimately, it’s the driver that benefits most, with affordable monthly payments making it easy to keep their vehicle to the highest standard on the road, so we’re delighted to be working with Payment Assist.” – Sharon Landau, project manager at Purchase Direct.
“Our partnership with Purchase Direct is hugely beneficial in all areas. Adding our BNPL offering to their payment platform will make it easier for customers to pay and for garages to get paid. Minimised up-front costs for drivers, thanks to our flexible, interest-free payments, is a valuable benefit for Purchase Direct customers, and we are excited to bring Payment Assist’s products to such a wide audience.” – Marcus Gregory, CEO of Payment Assist
“This collaboration represents a major milestone in our growth strategy. Purchase Direct’s reach across the franchised dealer sector, combined with our trusted finance solution, creates a powerful proposition for the market. We know from experience how valuable the right payment options can be — for drivers and for dealers.” – Chris Masters, Chief Commercial Officer at Payment Assist.
Need Interest-Free Payments That Work For You?
At Payment Assist, we are proud to be a leading provider of interest-free finance for automotive repairs and servicing. We work with garages, dealerships, and service providers across the country to make it easier for customers to afford the work they need. Our zero-interest, fee-free monthly payment plans remove the pressure of upfront repair bills, helping drivers spread the cost fairly and responsibly. For dealers and garages, our solutions boost conversion rates, retention, and revenue.
If you want to know more about how Payment Assist can support your business, or if you are a driver looking for garages that offer our plans, please contact us today.
FAQ
What does Buy Now, Pay Later mean in car servicing?
It allows drivers to spread the cost of car repairs or servicing into monthly instalments rather than paying everything up front.
Do BNPL options affect credit scores?
We simply check that your card has adequate funds to pay the initial deposit and that your address matches. There is no footprint left on your credit status.
Is it safe for garages to use BNPL solutions?
Yes. Approved BNPL providers handle the payment process securely and ensure garages get paid quickly, reducing financial risk.
Why are more industries moving to BNPL?
Customers prefer manageable monthly payments. It boosts sales and makes services more accessible.
Can BNPL work for emergency repairs?
BNPL is often most helpful in unexpected situations, allowing repairs to be carried out immediately while payments are spread over time.
Further Reading
- How 0% Finance Can Help Your Customers Say Yes
- What to Do When You Get an Unexpected Car Repair Cost
- Repair or Replace a Damaged Car? Understanding Your Customers’ Tipping Point
- Why Your Garage Needs to Provide Flexible Finance
Rising costs, fluctuating demand, and tighter margins mean that companies are having to totally rethink the ways in which they fund growth and manage day-to-day operations. More and more are choosing business finance as a tool to stay agile; among them, flexible finance options are proving the most popular.
Rather than relying on one type of borrowing, businesses are tending to spread the risk. This essentially gives them more breathing space, with various finance options handing them the chance to bridge gaps or seize new opportunities. It’s not just large firms making these moves, either. Small businesses are finding that a tailored approach to finance makes it easier to manage cash flow without missing out on investment opportunities.
Why are Flexible Finance Options on the Rise?
Traditional lending can be rigid, and fixed repayment schedules and lengthy approval processes can tie companies down. Flexible finance allows your business to scale borrowing in line with demand. It might mean short-term support that gives the capacity to cover seasonal fluctuations or longer arrangements to back major projects.
The attraction is simple, really; players across markets want certainty without having to sacrifice on agility. A long approval cycle for a bank loan can delay projects, but a quicker route through specialist providers can free up cash when it’s needed most. The global financial situation is uncertain, too, so speed and flexibility are becoming essential.
You Have to Manage Your Cash Flow
No matter the size or sector, being able to manage cash flow is as critical as ever. Late payments, unexpected costs, or an unexpected rise in overheads drain your reserves quickly. Even businesses that might look profitable on paper can find themselves squeezed if cash isn’t available at the right time.
Business finance helps bridge those gaps.
Rather than dipping into savings or holding back on growth plans, companies can get hold of working capital and spread costs. For many, this isn’t about taking on debt unnecessarily but more about smoothing out the bumps so that day-to-day operations aren’t disrupted.
With flexible finance options in place, businesses can pay suppliers on time, cover wages, and invest in stock without waiting for invoices to clear. That stability keeps teams moving forward and avoids the stress of constant firefighting.
Adapting to Market Shifts
Uncertainty has become part of business life, mainly because of supply chain issues, inflation, and customer demand. These shifts have made long-term planning more complicated. In turn, this has created a stronger demand for finance that can be adapted quickly.
A fixed facility might still work for some, but many companies want the ability to increase or decrease their finance depending on what’s happening in the market. That flexibility is especially useful for industries with peaks and troughs throughout the year, like hospitality, for example.
Supporting Growth Plans
Growth often means upfront investment. Hiring staff, upgrading technology, and expanding premises; all of it puts pressure on your finances. Funding these plans entirely from cash reserves just isn’t realistic for many companies.
With flexible finance options, you can break down these investments into manageable payments. This makes it easier to commit to new projects without overstretching. Instead of pausing plans until reserves are built up, use business lending options to grow when the time is right for you.
There’s also a competitive advantage here.
Businesses that act with speed and decisiveness to secure opportunities are much more likely to gain the upper hand. With access to suitable finance options, they can launch products, expand into new markets, or secure contracts while rivals are still arranging funding.
Building Financial Resilience
As we’ve discussed, global finances are far from reliable, which is why financial resilience has become so important. Having a single, dependable business finance arrangement that adapts to circumstances reduces the risk of being caught off guard by sudden changes.
Instead of being exposed to cash flow pressures or forced to pause investment, you can continue operating with confidence, and be confident that your finance is working alongside them rather than against them.
This adaptability means that even when unexpected challenges arise, the same facility can still provide the support required. By using flexible finance options in this way, you’re better positioned to manage your cash flow and maintain growth, without having to juggle multiple arrangements from different loan providers.
Get Flexible Finance Solutions with Payment Assist
At Payment Assist, we support businesses across the UK with a range of flexible finance options designed to make funding straightforward and adaptable. Our business lending division focuses on giving you practical ways to manage cash flow and access business finance when you need it the most. To find out more about how our flexible finance options can support you, get in touch with us today.
FAQs
What is the difference between a loan and flexible finance?
A loan usually comes with fixed terms, but flexible finance can adapt repayments to fit the way your business earns and spends money.
Can flexible finance support short-term needs?
Yes. It can be used to cover temporary costs as well as long-term investments, so it can help your business stay stable during busy or quiet periods.
Does flexible finance always mean higher costs?
No, not necessarily. In many cases, spreading payments makes investment more manageable without significantly increasing the total amount paid.
Why do businesses choose finance instead of using cash reserves?
Paying upfront can reduce working capital and limit flexibility. Finance allows businesses to spread costs while keeping reserves available for other needs.
Is flexible finance only for larger investments?
No. It can be used for both small and large expenses, depending on what best suits the company’s plans.
Further Reading
- Managing Increasing Car Repair Costs for Your Customers
- We’re Powering Automotive Growth with Our New Business Lending Division
- How Buy Now Pay Later Boosts Dealership Customer Retention
- Payment Assist and eDynamix Partnership Streamlines Payment Processes
No one likes to hear the words “it’s going to cost more than you expected.” But sadly, it’s starting to become the norm. Over the last few years, we’ve seen that car repair prices are climbing. Parts, as well as labour costs, supplier lead times, and even the basics like oil and brake fluid, have all crept up.
And when customers can’t cover the cost up front, it puts pressure on the whole process. Delayed approvals, abandoned jobs, and awkward conversations aren’t going to help your garage get the work out the door. But there are simple ways to make things easier, not just for your customers, but for your workshop and your bottom line.
Why Car Repairs Are Costing More
It’s not your imagination; things really are more expensive. There are a few reasons for that.
For starters, modern vehicles are more complex. That means you’ll be dealing with more diagnostics and more specialist parts, so you’re probably spending more time under the bonnet. At the same time, inflation has driven up costs across the board, from components to consumables.
Add in labour shortages, longer wait times for parts, and squeezed supplier margins, and it’s hardly a surprise that costs are going up. Unfortunately, it’s not likely that this is a temporary blip. Vehicles are going to continue to get more technical, and manufacturers will keep tightening specs. We can, therefore, expect higher prices for car repairs to stick around.
Crunching the numbers.
According to the Office for National Statistics, the maintenance of motor vehicles cost index rose by 6.8% in 2024. For context, general inflation was roughly half that, standing at 3.5% in April this year. Pothole-related repairs alone now cost UK drivers about £144 on average each year, and garages reported average labour-rate increases of 2.5% in 2024.
There’s a Knock-On Effect for Garages
Many customers either don’t or can’t budget for unexpected car repair costs. And when the cost jumps from a couple of hundred quid to over a grand, it’s understandable for people to get cold feet. That’s when they choose to put things off. They ask to think about it and say they’ll call back later. How many times does that end with no reply, no booking, no revenue? That wasted time ends up costing you.
Helping Customers Say Yes Sooner
The easier it is for someone to say yes, the faster the work gets done.
That’s why more garages are looking at ways to make car bills that little bit more manageable, especially when budgets are tight. One way to do that is by offering flexible ways to pay. Giving customers the option to spread the cost over a few months with a buy now, pay later package can be a massive helping hand. If someone can get the work done now without having to fork out for a huge bill, they’re much more likely to agree to the work there and then. That means faster approval and faster turnaround, too.
Do Rising Car Repair Costs Create an Opportunity?
Strangely, the answer could be yes. If you can find a way to make life easier for your customers, they’ll remember it. And in a market where trust is everything, that gives you the edge over competitors who are still expecting full payment up front.
Adding a buy now, pay later option is a powerful way of tapping into a business growth opportunity. More completed jobs, fewer abandoned quotes, better customer loyalty. It helps you turn a one-off visit into a long-term relationship.
And from a practical point of view, offering a flexible payment option shows you actually understand the reality most people are living in. Cost-of-living pressures are a real hurdle. Being the garage that gets the struggle? That could make a big difference.
Keeping the Workshop Flowing
Let’s face it, time is money. The longer a job sits waiting for customer approval, the more it clogs up your schedule. Offering a simple way to spread the cost keeps jobs moving. You’re not waiting for a payday or chasing phone calls. You’re just getting the work done.
And because these kinds of payment options are handled externally, there’s no risk you’re taking on. You aren’t acting as the lender, but you are making it easier for your customers, both new and old, to afford the repairs they need. It’s a win-win for everyone involved.
Want to Help Your Customers with Increasing Car Repair Costs?
At Payment Assist, we help garages offer a smarter way to manage rising car repair costs. Our simple, interest-free buy now, pay later service means your customers can spread the cost with no hassle and no hidden fees.
We take care of the process, from approval to payment, so you can focus on the job at hand. There isn’t any risk, and there’s no upfront cost to your business. You just get a better way to get more work signed off, faster.
Sign up with Payment Assist today, or get in touch with us with any questions about how we can help you support your customers and grow your business.
FAQs
Can offering finance delay the car repair process?
Not if the approval is instant. With the right system in place, offering finance can actually speed things up by removing decision friction.
Is buy now, pay later a good fit for smaller car repair jobs?
It can be, especially if customers are juggling multiple costs. Even spreading a £250 job can make it easier for someone to commit.
How does offering payment options affect customer loyalty?
Customers who feel supported during stressful times are more likely to return, leave good reviews, and recommend your workshop to others.
Do customers need good credit to buy now, pay later?
At Payment Assist, we only check that the card has adequate funds to pay the initial deposit, and make sure the address registered to the Debit card matches. We very rarely carry out full credit checks.
Further Reading
- Why Drivers Delay MOT Fixes & How 0% Car Repair Finance Can Help
- How 0% Car Repair Finance Can Help Your Customers Say Yes
- Payment Assist & Car Care Plan Partner with Nissan to Launch Nissan Instant Service Plan
- How Buy Now Pay Later Boosts Dealership Customer Retention
There’s more to running a car than filling up and driving off. Servicing, insurance, repairs, tyres; they all stack up. Skip the budgeting, and it’s only a matter of time before something stings.
According to the latest figures, the average cost of running a car in the UK is sitting around £3,350 a year. That’s before you even factor in things like surprise repairs or rising fuel prices. So, if you’re trying to get on top of your motoring costs, it’s not a bad time to take a closer look at what you’re really spending.
Here’s a breakdown of the big ones, and how to stay ahead of them without wrecking your bank balance.
Fuel and Insurance
Fuel is one of the most obvious ongoing expenses. Even if you’ve got a fuel-efficient motor, the price at the pump never stays still for long. A few pence here or there each week quickly becomes an extra £100 a year. There’s no simple fix for this, sadly. Shopping around isn’t a bad option, and services like PetrolPrices can help with this. Their interactive map is a handy way of quickly identifying the cheapest fuel close by.
As for insurance, annual quotes vary a lot depending on your age, postcode, driving history, and even your job title. Again, it pays to shop around every year and tweak your policy if you’ve made changes to your car or driving habits. Add in breakdown cover while you’re at it, too. It’s a small cost that can save you a big headache.
Servicing and Maintenance
Regular servicing has got more expensive recently, but it’s still one of the easiest ways to avoid unexpected bills. It’s a cost you need to account for. A basic service might only set you back £100–£150, but a full one could be closer to £300, depending on your car.
It’s also important to think about the parts that wear out over time. Tyres, brake pads, and batteries all have shelf lives. You might get a warning sign, or they might just fail one day. Having a buffer in your budget means you’re not scrambling when it happens.
If something does go wrong, a car repair payment plan can soften the blow and let you spread the cost, rather than getting lumped with a single hefty bill.
MOT Costs and Fixes
On MOT day, you hope for the best but brace for the worst. The test itself isn’t expensive (the government sets a max fee of £54.85 for cars), but the trouble is what comes after. A failed MOT can mean repairs you weren’t ready for. If your car needs new suspension, a fresh set of tyres or even just a bit of welding, it can run into the hundreds.
If you can, it’s definitely worth setting aside a bit each month for MOT costs. Even if your car sails through, you’ve still got that money ready for the next one or any repairs in the meantime.
Road Tax
Road tax (VED) might not be a regular talking point, but it’s still a part of the running costs. There used to be more variation in your road tax, but these days it’s more or less a flat rate for vehicles registered after April 2017, following the first year’s payment. The big exception here is vehicles with a list price of more than £40,000, which incur a tax of £425/year, more than double the average.
If you’re able to, it works out slightly cheaper to pay your tax annually, but there are options surrounding monthly direct debits if you need to spread the cost.
Create a Car Budget that Works
The best way to budget for your car is to break it down monthly. Add up everything (insurance, tax, servicing, repairs, MOT costs, the lot) and divide it by 12. Putting aside that amount each month into a ‘car pot’ means you’re not scrambling when those costs hit.
If you’re on a tighter budget, keep an eye out for ways to make things more manageable. A car repair payment plan can really take the pressure off when something unexpected crops up.
Need A Hand Spreading The Cost? Get 0% Car Repair Finance
When something goes wrong with your car, the cost shouldn’t put the brakes on everything else. Payment Assist offers an easy, interest-free way to handle car repair finance without dipping into your savings. Whether it’s unexpected MOT costs or a big repair bill, our car repair payment plan helps spread the cost so you can stay on the road without the stress.
We work with garages and dealerships across the UK to give you flexible options with no hidden fees. Head to our site to find a dealership near you or get in touch if you’ve got any questions.
FAQs
How can I reduce my car’s running costs?
Simple things help, like driving more efficiently, checking tyre pressure, and keeping up with regular servicing, all of which make a difference. It also helps to shop around for insurance and fuel, if you can.
Is it worth putting money aside every month for car expenses?
Yes. Setting up a small savings pot means you’re not caught out by things like MOT costs or emergency repairs.
How much should I budget for repairs each year?
It depends entirely on your car’s age and mileage, so an exact figure isn’t really feasible. Newer cars might cost less, but older ones can surprise you. A garage with car repair finance makes this much easier to manage.
What if I can’t afford a big repair bill?
0% interest car repair finance options are a great way to help spread the cost over time. Always check what’s available before agreeing to a job.
Further Reading
- What’s Driving Growth in the Used Car Market?
- What to Do When You Get an Unexpected Car Repair Cost
- Why Are Car Repair Costs Higher in Winter?
- What Are the Challenges of Electric Car Maintenance?
Keeping your car serviced shouldn’t mean emptying your wallet in one go. That’s why the new Instant Service Plan from Nissan, which we’ve launched in partnership with Car Care Plan, is a game-changer for UK drivers.
This new option is built for anyone who wants to keep their vehicle in top condition without paying everything upfront. By spreading the cost over 12 months, you get peace of mind, full dealer servicing, and flexible payments, all wrapped up in one manufacturer-backed package.
What Is the Instant Service Plan?
Nissan’s Instant Service Plan is a new initiative that’s been developed in partnership with Car Care Plan and Payment Assist. It’s been designed to help used Nissan owners get a major and minor service done over the course of a year without having to pay the full cost upfront.
Instead, you can opt to pay monthly for car repairs using an interest-free plan powered by Payment Assist. It’s a fixed monthly amount, spread across 12 months, and available for eligible Nissan vehicles under ten years old. It’s not a generic package, either. This is a full Nissan service using approved parts. It’s carried out by official Nissan dealerships and supported by a 12-month warranty and RAC Roadside Assistance.
Who is the Nissan Instant Service Plan For?
This new plan is especially useful if you’re a used Nissan owner and you’re not already on a longer-term service agreement. Around 45% of Nissan retail customers buy a service plan when they get a new vehicle, often for two to four years. But for everyone else, costs can come as a surprise when a service is due.
The Instant Service Plan fills that gap.
It gives those drivers a straightforward, manageable way to stay on top of Nissan servicing costs without skipping essential maintenance or being tempted by less reliable alternatives.
How the Partnership Works
The Instant Service Plan was put together by three well-known names. Payment Assist makes it possible to pay monthly for car repairs with no interest. Car Care Plan has worked with Nissan for over 15 years, handling service and warranty support, and with full backing from Nissan, it all adds up to a simple, reliable way to manage your servicing.
“We have been working with Nissan for more than 15 years, and the opportunity to bring about this new Instant Service Plan was an ideal chance to further strengthen those ties. By onboarding Payment Assist, we can offer the best possible deal for customers who would otherwise likely look to independent garages or not service the vehicle at all. This way, drivers get a full major and minor Nissan service and benefit from improved residual values as a result.” – Jon Norman, Head of Corporate Sales, Car Care Plan
Why Spread the Cost?
Servicing costs can land at awkward times. Life’s busy enough without surprise bills, especially for something like your car, which is a non-negotiable cost. That’s where Payment Assist can make a big difference. Our interest-free solution lets drivers pay monthly for their car repairs and spread the cost of a full minor and major service across 12 fixed payments. It means the work gets done, the car stays in great shape, and your finances don’t take the hit all at once.
“Nissan’s new Instant Service Plan is the ideal way for customers to maintain a full dealer service history while benefiting from a flexible, interest-free way to pay. By using Payment Assist’s payment solution, drivers can spread the cost into manageable monthly instalments. It’s a win-win, offering added value for the customer’s vehicle and helping dealerships retain long-term after-sales relationships.” – Marcus Gregory, CEO of Payment Assist
What Does the Plan Mean for Dealerships?
For dealerships, the Nissan Service Plan offers a great way to boost after-sales retention and customer satisfaction. By giving drivers a simple, interest-free way to manage servicing costs, dealerships can strengthen loyalty, increase workshop bookings, and reduce the risk of losing customers to independent garages. It’s a smart way to support long-term relationships while offering real value. Get in touch with us to find out more about how the plan can benefit your business.
What’s Included in the Plan?
When you sign up to the Instant Service Plan, you get:
- One minor service and one major service
- All work carried out by Nissan-trained technicians
- Genuine Nissan parts with a one-year warranty
- 12 months of RAC Roadside Assistance
- A full Nissan dealer service history
That last point is worth highlighting.
A full service book, stamped by Nissan dealers, helps maintain the car’s value over time. So not only are you looking after your vehicle today, but you’re also protecting its future resale value, too.
Is Your Car Eligible?
To qualify for the Instant Service Plan, your vehicle must:
- Be a UK-specification Nissan.
- Be less than ten years old.
- Not be an LCV, GT-R, NISMO, Pathfinder, or Patrol model.
- If your car fits that description, you’re in.
Want To Spread The Cost of Your Car Repairs?
At Payment Assist, we help you manage essential car expenses with flexible, interest-free payments. From Nissan servicing costs to unexpected repairs, we make it easier to keep your car on the road without paying for everything at once. We work with trusted dealers, garages, and manufacturers to help drivers like you stay in control of car care costs. Find a dealership near you to make the most of the Nissan Instant Service Plan, or get in touch to find out more.
FAQs
What is the Nissan Instant Service Plan?
The Nissan Instant Service Plan is a 12-month interest-free payment plan that covers one minor and one major service at an official Nissan dealership, using genuine parts and trained technicians.
Who can use the Nissan Instant Service Plan?
It’s designed for UK-based Nissan drivers with vehicles under ten years old. It’s ideal if you’re not already on a long-term service plan and want a more flexible way to manage servicing costs.
Can I really spread the cost with no interest?
Yes. Thanks to Payment Assist, the total cost is split into 12 fixed monthly payments with no interest and no hidden fees.
What’s included in the plan?
You’ll get a full minor and major service, 12 months of RAC Roadside Assistance, genuine Nissan parts, and a service history stamped by Nissan, helping to protect your car’s value.
Which cars are not eligible?
The plan doesn’t cover LCVs, GT-R, NISMO, Pathfinder, or Patrol models. All other UK-spec Nissan vehicles under ten years old should qualify.
