Unlocking untapped value for independent garages

Marcus Gregory, CEO of Payment Assist, discusses the impact of spiralling living costs on vehicle repairs and explains why flexible finance can offer a valuable solution. 

For major players across the UK aftermarket, Buy Now, Pay Later (BNPL) is widely seen as an established fixture. However, adoption rates among smaller independent garages, bodyshops and tyre fitters remain surprisingly low.  

Indeed, recent data suggests that less than 30% of independents offer flexible finance solutions, citing concerns over cost, complexity, process and the overarching administrative burden as common barriers to adoption. 

But while businesses are acting with caution, motorists are struggling. The combination of tightening household budgets, soaring living costs and shrinking flexible income is putting drivers under increasing financial pressure. As a result, routine servicing and maintenance spend is increasingly taking the back seat. 

The Motor Ombudsman's annual poll of garages and workshops, for example, found that 68% of drivers are skipping vital vehicle work as a quick way to save money. Elsewhere, recent data from the RAC reveals that one in five drivers has admitted to driving without a valid MOT.

Although avoiding repairs may seem like an easy way to save money, it’s a false economy. Kwik Fit points out that most major vehicle breakdowns occur when maintenance has been neglected, while Car.co.uk uses the example of a £600 routine timing belt change quickly escalating into a £5,000 catastrophic engine failure if work is unnecessarily delayed. In short, papering over the cracks is unlikely to achieve long-term financial savings.

Alongside bigger bills, however, skipping vital repairs is also putting road users at major risk. Auto Express suggests that there could be as many as 1.5 million dangerous cars on UK roads with unaddressed defects, while lawyers Cavanaugh & Thickens suggests that 20% of all accidents are caused in some way by poor maintenance.

The implications are frightening and education seems key to tackling the issue head-on, but how can independent garages communicate this message to their customers? What’s more, how can they help break the cycle of tightening budgets, spiralling concerns over household spending and delayed vehicle repairs? The obvious solution is flexible finance.

Products like Buy Now, Pay Later (BNPL) provide an attractive opportunity for motorists staring down the barrel of unexpected repair costs to split costly bills into smaller, interest-free instalments. While larger garages are already widely harnessing finance solutions to make it easier for customers to pay for vehicle repairs, many smaller operators are currently missing out.  

Indeed, our own research has found that around 67% of independent garages are yet to integrate BNPL solutions and, as a result, are likely turning away work. Mechanics report feeling uncomfortable discussing the intricacies of flexible finance options with their customers, while owners expect unfavourable rates and a ‘sting in the tail’.

But this is far from the truth with Payment Assist. Earlier this year, we halved our rate to just 4.5% across all 3-month plans to help garages, workshops and tyre fitters increase conversion rates, improve customer loyalty and scale with confidence. Making it easier than ever to access a fair alternative to traditional lending solutions, the initiative aims to increase commercial competitiveness and support future business growth.