Currently reading: Garages divided over government review of MOT cost cap

Government review into raising the MOT price cap has sparked debate

Garages are arguing that the price of an MOT test should be heavily increased as the government begins a review into the £54.85 fee cap, established 15 years ago.

However, there are also concerns among some garages that increasing the fee too much will put off drivers and start a price war that will be fiercer than the one seen today.

That's because some centres are willing to take a heavy loss on each test as it is one of the few ways of attracting new customers.

The review was sparked by a petition from the Independent Garages Association (IGA), which argued that an increase was needed to reflect rising business costs.

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"This review represents a crucial opportunity to secure a fairer, more sustainable framework for MOT testing that reflects the real costs faced by garages," said IGA CEO Stuart James.

It's unclear what the new test fee will be , but in its current review of MOT charges for HGVs, buses and trailers, the Department for Transport says the fee for these vehicles is likely to rise by around 10%. If applied to car tests, this would equate to a new cap of £59.85.

However, garages are calling for a higher cap. "To cover costs, the test fee should be about £70," a spokesman for one independent workshop, which wished to remain anonymous, told Autocar.

He added: "On top of paying the tester nearly an hour's wages per MOT, if a garage hasn't got an automated test lane, [they need to pay an assistant as well. Then there are extra costs associated with the equipment we have to use and the safety procedures required by the DVSA."

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VW Golf undergoing MOT test

Despite the call, "drivers would not have to pay that" in reality, said the spokesman, because fierce competition between centres means "garages undercut each other to gain a customer base".

Instead, servicing and repairs from those customers on future visits is seen as more valuable.

A survey of garages by Autocar shows this competition is happening already, with the price of an MOT averaging £45, around £10 less than the maximum fee.

However, one garage - Pickwell Autos of Reading - was offering the test from £29.99. A spokesman said its MOT deal was a loss leader to attract customers : "We need to charge at least £50 to cover the business's expenses and make money, so we're not making any profit at this price but it attracts business. If the official charge increased, we'd still discount it."

Dan Joyce, operations director at Kwik Fit - the UK's largest MOT tester and one that charges the maximum fee of £54.85 - argued that even with any cap increase, motorists are unlikely to feel the rise.

"Not all MOT centres charge the maximum fee, so it is debatable whether an increase would have a significant impact on the actual price paid by drivers," he said.

Dan Lewis, a former MOT tester turned trainer, said garages need to consider their position on this. "Garages need to look at themselves," he said.

"The trade has been fighting for a rise for around 15 years now but nearly every garage offers a discount on an MOT. Where is the argument for a cost rise if they are able to do that?"

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