How Extended Warranties Help Dealerships Tackle Rising Repair Costs

Rising repair costs are one of the biggest challenges facing UK dealerships in 2025. According to the Motor Ombudsman’s 2024 review and 2025 outlook survey, 52% of workshops expect the price of parts to increase this year, and 56% are already seeing motorists cut back on essential repairs to save money. With customers delaying maintenance and parts shortages adding to the pressure, dealerships need practical solutions to protect their business and support their customers. 

• Over half (52%) of UK workshops predict that parts prices will rise further in 2025, driven by shortages and inflation. 
• 56% of repairers expect more customers to delay essential repairs, while 48% say routine maintenance will also be put off due to financial pressures. 
• Commonly delayed repairs include timing belt replacements, oil changes, new tyres, fixing oil leaks, and brake-pad replacements—all of which can lead to much bigger repair bills if ignored. 
• Dealerships are trying to avoid passing these higher costs onto customers, but this puts extra strain on their profitability and cash flow. 

Extended warranties from AutoProtect offer a win-win for both dealerships and their customers: 

1. Covering Unexpected Repair Bills 

When customers have an extended warranty, they’re protected from the shock of sudden, expensive repairs. The warranty covers the cost of parts and labour for covered issues, meaning customers don’t have to delay vital work due to cost concerns. This keeps vehicles in better condition and reduces the risk of breakdowns. 

2. Encouraging Timely Maintenance 

With the peace of mind that emergency repairs are covered, customers are less likely to put off regular maintenance. This helps dealerships maintain a steady flow of work, even when household budgets are tight, and prevents minor issues from turning into major problems. 

3. Protecting Dealership Profitability 

By offering extended warranties, dealerships can continue to deliver high-quality service without worrying about losing customers to unaffordable repair bills. This helps avoid abandoned vehicles and keeps workshop revenue stable, even as operational costs rise. 

4. Building Customer Loyalty 

Customers appreciate the security of knowing their car is protected. This strengthens trust and loyalty, encouraging them to return for future servicing and repairs—a key positive highlighted by 70% of workshops in the latest survey. 

AutoProtect’s warranty products are designed to cover a wide range of vehicles and repair scenarios, giving both dealers and customers confidence in the face of rising costs. By partnering with AutoProtect, dealerships can: 

• Offer real value and reassurance to customers 
• Maintain workshop revenue and profitability 
• Stand out in a competitive market 

In a year where costs are rising and customers are feeling the pinch, extended warranties are more important than ever for UK dealerships. Protect your business and your customers with AutoProtect.