Business 14 www.aftermarketonline.net APRIL 2026 The power of flexible finance Marcus Gregory, CEO of motor trade finance specialist Payment Assist, discusses the impact of rising living costs on vehicle repairs and explains why flexible finance is becoming a valuable sales tool for independent garages. According to new insight from The Motor Ombudsman, seven in ten UK drivers are putting themselves and other road users at risk by delaying essential vehicle repairs. The combination of tightening household budgets, soaring living costs, and shrinking flexible income is seeing routine servicing and maintenance relegated to the back seat, resulting in an alarming increase in the number of unsafe vehicles on UK roads. Data from Auto Express suggests that there could be as many as 1.5 million dangerous cars on our roads with unaddressed defects, while findings from The RAC reveal that penalty charges issued for driving unsafe vehicles have increased by more than 50% since 2023. Although avoiding repairs may seem like an easy way to save money, it’s a real false economy. Car.co.uk recently highlighted to consumers how a £600 routine timing belt change can quickly escalate into a £5,000 catastrophic engine failure if the work is unnecessarily delayed. We all know that papering over the cracks is unlikely to achieve long-term financial savings. 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? Well, the answer may come in the form of zero-interest finance. Flexible finance options like Buy Now, Pay Later (BNPL) offer an option for motorists facing unexpected repair costs, allowing them to split bills into smaller, interest-free instalments. Larger garages are already using flexible finance to help drivers navigate escalating living costs, but our own research has found that around 67% of independent garages are yet to integrate BNPL solutions and, as a result, may be turning away work. Mechanics might feel uncomfortable discussing the intricacies of flexible finance options with their customers. However, we’re seeing growth in the number of independents using third-party providers to take control of this part of the process – leaving them free to focus on the job in hand. For drivers, BNPL allows the cost of repairs and essential maintenance to be spread over manageable, interest-free instalments. For garages, it notably reduces budget barriers and makes it far easier for customers to approve essential work. Indeed, when leveraged effectively, the average business can expect to see an increase in workload and revenue by offering flexible financing options. As the independent aftermarket sector looks further ahead into 2026, tighter regulations on BNPL are set to come into force soon. Providers will face greater legal scrutiny to ensure customers are treated fairly, with lenders required to conduct more rigorous due diligence. It’s all about being responsible and transparent. Regulated by the Financial Conduct Authority (FCA), we are ‘Consumer Duty’ focused and undertake affordability checks to protect our customers from overstretching their finances. This new era of fair, flexible finance could unlock significant potential in the motor repair sector, giving customers greater confidence in using financing options. It’s safe to suggest that the trilemma of tightening household budgets, soaring living costs and shrinking flexible income will be with us for some time. However, for independent garages, flexible finance can offer the opportunity to attract and retain customers despite economic pressures, while ensuring that more vehicles are kept in a roadworthy condition. www.payment-assist.co.uk Marcus Gregory, CEO of Payment Assist
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