Why falling inflation is “great news” for indy garages

Falling UK inflation is set to have a big impact on independent garages, according to one of the country’s biggest associations.

Inflation, which measures the rate of price increases over time, hit their lowest levels for almost three years after electricity and gas prices fell.

This is “great news for your independent garage” says the Independent Garages Association (IGA).

Cheaper supplies

When inflation is high, everything gets more expensive – including the parts and supplies you need for your garage. With the inflation rate going down, prices stabilise or even drop. This means you can get your hands on parts, tools, and other essentials at lower prices, helping you save money and boost your profits. Lower costs can also mean more cash to invest in new equipment or hire more staff.

More customers

High inflation often makes people tighten their belts and cut back on spending, including car maintenance and repairs. But with inflation dropping, people have more disposable income. This means they’re more likely to spend on keeping their cars in good condition, leading to more business for you.

Easier borrowing

When inflation goes down, interest rates usually follow. Thinking about expanding your garage, buying new tech, or sprucing up your space? Lower interest rates mean you can borrow money at better terms, making it cheaper to get loans or credit. This financial breathing room can help you grow and improve your garage, attracting even more customers.

Stable prices

Constantly changing prices can be a headache for both you and your customers. High inflation forces you to keep adjusting your rates to keep up with rising costs. But with a lower inflation rate, prices become more stable. You can set consistent prices, making it easier for customers to plan their expenses and trust your services.

Competitive edge

As an independent garage, you can use these benefits to outshine bigger chains. Pass on some of the savings to your customers through competitive pricing or improved services, and watch your business grow. Plus, with a healthier financial situation, you can invest in marketing to highlight what makes your garage the best value choice for the customer.

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