MOT testing is an ‘unsustainable loss leader’ for independent garages, who could stop offering the service altogether unless pricing changes.
That is according to those on the front line, who have told Car Dealer that the economics of MOT testing are becoming increasingly difficult for smaller garages.
It comes as the Independent Garage Association (IGA) continues its campaign to raise the price of a standard MOT test.
The body argues that the current MOT fee cap for class 4 vehicles has remained unchanged, at £54.85 since 2010, while independent garages have faced higher costs for labour, rent, equipment, fuel, energy, compliance, administration and staff training.
It is a stance that dealers would appear to agree with, with several with telling Car Dealer that the fee no longer reflects the cost of carrying out an MOT.
Umesh Samani owns Harris Motor Company, which provides tyres and MOTs as well as service and repair work in Stoke.
The IMDA chairman says the current price structure means that garages are effectively left subsidising the test themselves.
‘I appreciate that the MOT is often seen as a loss leader, with garages hoping to generate additional servicing and repair work from customers,’ he told Car Dealer
‘However, I think there is a danger that this has become an expectation rather than a sustainable business model. Smaller independent garages in particular cannot continue absorbing rising costs while effectively subsidising MOT testing.’
Samani recently had to replace his brake roller tester at a cost of around £11,000 plus VAT.
At the current maximum fee, that means more than 200 MOT tests would be needed just to recover the cost of the equipment, before paying the tester or covering premises, servicing and calibration costs.
‘The biggest issue is that the fee simply doesn’t reflect the true cost of carrying out an MOT,’ he explained.
‘It takes a qualified tester’s time, requires significant investment in specialist equipment, ongoing calibration, training and compliance, as well as all the usual overheads associated with employing staff and running a workshop.’
‘We are certainly making a loss’
Theo Cook is the owner of Bowen’s Garage in Ross-on-Wye. He told Car Dealer that the problems with costs run far deeper than the headline price of carrying out an individual test.
He pointed to six-monthly equipment calibration, annual MOT tester training, emissions equipment and photographic evidence requirements as additional costs garages have to absorb.
It is a situation that has left the business losing money and needing to jump through ‘more and more hoops’.
‘We’re certainly making a loss,’ Cook told Car Dealer. I did see on one of the MOT forums that I’m part of on social media the other day that they reckon it costs them £38 to do an MOT, but that is literally wages and opening the doors.
‘It doesn’t include all the calibrations. Calibrations are more regular, they’re every six months now on the ramps and the analysers – all of which you have to pay for.
‘The MOT training used to be every five years, now it’s annual. There’s just more and more and more hoops.
‘It all costs more money than it used to, everything does. Our electricity, everything. And so does everybody else’s. It’s across the board and having a limit of £54.85 is too low.’
What should the new price be?
If the price cap had kept up with inflation since 2010, an MOT test would now come in at £91.50
Speaking last week, the IGA called on the price to be raised to at least £95.
Cook also believes the maximum fee should be brought in line with inflation, arguing that £95 to £100 would be a more realistic figure.
‘£54.85 has been the maximum since 2010,’ he said. ‘I went on ChatGPT earlier and just asked what would £54.85 in 2010 be worth today.
‘The answer was just over £91. You think how much everything else has gone up in the world and we’re still charging £54.85.’
‘I think it should be £100, or £95,’ he added. ‘It should be a flat rate across the board.’
Meanwhile, Samani was more conservative when asked by Car Dealer. He called for the fee to around £80 so that it still represents ‘very good value’ to customers.
He said: ‘Personally, I believe the MOT fee should be at least £75, and arguably closer to £80.
‘That would still represent very good value for the motorist and, importantly, would bring the fee closer to the real cost of providing the service.’
Other members of the Independent Motor Dealers Association (IMDA) also backed an increase, although there is little agreement over what the fee should be.
Leigh Mcavoy, managing director of LM Motor Company, said that the £80 mark would be a ‘fair’ price, while others said MOTs had always been a ‘loss leader’ and called for a £65 cap.
For Cook, the pricing issue is now approaching breaking point. He said his business will continue offering tests for now, but refused to rule out ditching them if nothing changes.
‘If it went another 18 months, two years without any change, I think that I would seriously consider packing in MOTs , he said.
‘I certainly wouldn’t be setting up an MOT station. I think you’d have to be absolutely bonkers to do that in the current climate.’
Theo Cook previously spoke about the benefits of having an in-house garage on the Car Dealer Podcast. You can see the full episode below:

