Your automobile restore prices are set to soar even HIGHER in 2025, motoring consultants warn

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 tough choices to delay maintenance and repairs. 

The majority of motorists skipped at least some servicing and repairs last year to save money, the concerning 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’re expecting motorists to delay vital repairs in order to avoid expensive bills this year, as 2025 is set to bring even higher costs and more difficult choices for drivers.

While in the short term delaying repairs and maintenance will save money, not only can costs then spiral longer term, but it can put people in danger too.

We’ve spoken to motor industry insiders to gain a picture of the car repair climate facing drivers this year.

Why repair costs are rising in general

As well as the economic pressures and inflation, the Motor Ombudsman pinpoints to a few reasons why car repairs are particularly high: the ongoing component shortage along with inflationary pressures.

Motoring association MotorEasy also pointed to ‘supply chain issues’ and a ‘shortfall in skilled motor technicians in garages.’

CEO Duncan McClure noted that ‘it’s not just the availability of parts that delays work being undertaken but technicalities of shipping items such as EV batteries, which are hazardous cargo, are impacting lead times too.’ 

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

Warrantywise told This is Money that their ‘data shows that average repair request costs are increasing with inflation [from 2023 to 2024] due to rising parts and labour expenses, so certain manufacturers and parts incur higher costs.’

Are electric cars driving up repair costs?

MotorEasy explained: ‘Because EV and hybrid technology is advancing at such a rate, remedies are often not fully documented or widely understood. 

‘This often means we need to refer repairs to mainline manufacturer dealers rather than traditionally more cost-effective independent garages. 

‘The cost compounds further as manufacturer dealers seem more inclined to replace whole units rather than repair constituent parts. This in turn relates to further delays and uncertainties where a battery replacement requires shipping as dangerous cargo.’

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

Some 52 per cent of garages are expecting repair costs to go up due to ongoing component shortages and inflation, meaning the financial strain on hardworking families is set to intensify.

While the majority of garages will likely have to pass some costs onto customers, many are trying to absorb costs as much as possible.

In fact, 42 per cent of businesses told the Motor Ombudsman they are committed to absorbing these increased expenses to help protect consumers’ bank accounts.

Roger Griggs, communications director at Kwik Fit confirmed this to us, saying: ‘Like any other industry the car repair sector is affected by inflation, but we are supporting customers by absorbing increases where we can.’

Do motorists avoid getting their car repaired?

Avoiding high repair costs can have serious consequences in the long run.

In 2024, 53 per cent of businesses reported customers not doing routine car maintenance, such as servicing, to save money.

Kwik Fit found their research ‘reflected the themes in the Motor Ombudsman report’ and the ‘economic climate had affected the planned motoring expenditure of more than half of all drivers.’

Kwik Fit found measures taken to cut costs included; ‘delaying the purchase of a newer model, skimping on servicing or switching 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 cut in people getting repairs done. To save money they will often ask for the bare minimum of repairs just to get their vehicle through an MOT or back on the road.’ 

Not only could postponement lead to significantly higher costs down the road the Motor Ombudsman warns, but critically it could put vehicle owners and their occupants, as well as others, in danger.

By postponing maintenance, car owners may suffer compounded mechanical issues requiring costlier repairs, decreased fuel efficiency leading to higher running costs, coupled with an increased risk of breakdown, potentially resulting in expensive emergency repairs and towing fees.

The RAC has found that it’s ‘unsurprisingly the youngest drivers’ who are the ‘hardest hit’: 26 per cent of those surveyed last year aged 17 to 24 told the RAC they’d deliberately put off paying for vehicle repairs due to the cost-of-living crisis.

Some drivers will go even further than just postponement: 28 per cent of repairers anticipate customers abandoning their cars at garages if work is too costly or the vehicle proves uneconomical to fix. 

However, Warrantywise told us that, ‘while we don’t see rising prices stopping our clients from maintaining their vehicles, we do see them spending more carefully.’

Are motorists keeping cars for longer due to rising costs?

The Motor Ombudsman’s survey has found that drivers are keeping their vehicles for longer because of economic pressures.

In a sign of the times, 68 per cent of garages said that customers are tending to keep existing cars for longer.

For many, foregoing the cost of newer or more expensive models may seem like a sensible financial measure, but this also makes looking after an older vehicle critical – to avoid any unwanted breakdowns, parts failures and increased bills.

The continuing trend of expensive car repairs

This time last year This is Money reported that 2023 was a record expensive year for car repairs.

‘The cost of repairs jumped 32 per cent in the third quarter of 2023 to a quarterly record of £1.6 billion’, a spokesperson from the Association of British Insurers confirmed.

Rising operational costs, taxes and energy are the biggest three factors, with the increased cost of spare parts and workforce shortages completing the top five.

Hannah Gordon said: ‘The motoring sector like with all sectors is struggling with rising costs through materials, utilities and wage costs.’

Do high repair costs drive up insurance premiums?

Vehicle repairs require large amounts of power, and unlike households, businesses aren’t entitled to any government support.

As an example: Gas and electricity bills for car repairers rose by a staggering 300 per cent in 2023, with garages paying the full price of this.

The average energy cost per repair was £70.

Not all of this can be absorbed by insurers, so it’s passed onto consumers as increased premiums.