Speaking to our garage contacts, it seems the feeling in 2025 was much the same: the diary is packed, the team is flat out, but the bank balance doesn’t reflect it.
Between the frozen MOT fee and energy bills that would make your eyes water, running an independent garage in 2025/2026 is a different beast than it used to be.
Here’s the reality of what the industry is facing—and how to stay ahead of it.
The “MOT Trap”
The MOT has always been the “bread and butter” for getting cars through the door. But here’s the problem: the maximum MOT fee hasn’t changed since April 2010 – as we all know well.
| MOT Test Class and Vehicle Type | Maximum Fee (2025) | Last Increase Date | Required CPI-Adjusted Fee (Est.) |
| Class 1 & 2: Motorcycles | £29.65 | 06 April 2010 | £46.25 |
| Class 3: 3-Wheeled Vehicles (up to 450kg) | £37.80 | 06 April 2010 | £58.97 |
| Class 4: Cars (up to 8 seats) | £54.85 | 06 April 2010 | £85.66 |
| Class 4: Motor Caravans | £54.85 | 06 April 2010 | £85.66 |
| Class 4: Goods Vehicles (up to 3,000kg) | £54.85 | 06 April 2010 | £85.66 |
| Class 5: Private Passenger (13-16 seats) | £59.55 | 06 April 2010 | £93.00 |
| Class 7: Goods Vehicles (3,000kg to 3,500kg) | £58.60 | 06 April 2010 | £91.50 |
Once you take off the £2.05 “slot fee” for the DVSA, you’re left with about £52.80. When you consider that the average hourly labour rate is now over £52, the MOT is basically a break-even job. Garages just can’t rely on “loss leaders” anymore, you’ve got to make sure every hour on the ramp counts.
Tackling the Energy Bill
Workshops are drafty, high-voltage places, and energy costs are now 45% higher than they were just a few years ago.
- The LED Quick Win: If you’re still using old halogen bulbs, you’re burning money. Switching to LEDs uses 80% less energy. Most garages find that the savings pay for the new lights in less than two years.
- Waste Oil Burners: Heads up, the rules have changed. In England and Wales, the permits to burn waste oil legally now cost over £3,000, plus yearly fees. So it might be time to look at better insulation, infrared heaters or even heat pumps instead of that old heater.
Where the Money is Moving: ADAS & EVs
The “greasy” mechanical jobs aren’t going away, but the high-margin work is shifting toward tech.
- ADAS Calibration: 1 in 5 cars on the road now has sensors for lane-keep assist or emergency braking. If you do a bumper repair or a wheel alignment, that car needs calibrating.
- A single ADAS job can bring in £150 to £350.
- If you invest in the kit, doing just 5 of these a week can pay for the equipment in about 19 weeks.
- The EV “Maintenance Cliff”: People say EVs don’t need servicing, but that’s only when they’re new. Once an EV hits 5 years old, the average invoice is actually higher (£342) than a petrol car (£254) because the repairs are more technical.
It’s Still About the People
Research shows that 70% of UK drivers still prefer independents over the big “faceless” main dealers. Why? Because of the stories we heard about Dukes AutoTech or Shortfield Garage—where we know the customer’s name and we don’t charge them for a “bean” when they’re going through a tough time.
Yes, tools are getting more expensive and the cars are getting more complicated, but your best asset is still the person holding the spanners. By charging a fair labour rate and investing in new tech, like ADAS, you can make sure you’re still here to serve the community for the next three generations.
What’s coming next…
- Pay-per-mile: The government is looking at taxing EVs by the mile, and they’ll likely use the MOT test alongside an annual check for new cars – again this could bring in new cars through your doors that you wouldn’t normally see.
- Stricter Rules: The DVSA is cracking down. If a tester gets banned for a mistake at one site, they’re now likely to be banned across all sites.
Independents are fast-moving from being “mechanics” to “tech consultants.” It’s a bit of a squeeze, but for those of us who adapt, the future looks busy!
