Garages: Costs, Margins and Benchmarks

Carl Trigg  ·  October 2026  ·  6 min read  ·  Free calculator

The ONS counted 49,597 vehicle maintenance and repair businesses registered for VAT or PAYE in 2024, turning over £37.5bn. The class includes servicing and mechanical repair, MOT testing, bodywork and tyre fitting.

The figures

2024Vehicle maintenance and repair
Businesses (VAT or PAYE registered)49,597
Total turnover£37.5bn
Average turnover per business£755,000
Staff costs, % of turnover20.6%
Bought-in goods and services, % of turnover65.6%
Left after staff and bought-in costs, % of turnover13.8%
Stock held, in days of purchases41 days

Source: ONS Annual Business Survey, 2024 results (published 26 May 2026). It covers businesses registered for VAT or PAYE, so the smallest sole traders are not included. Averages are pulled up by the largest firms. For sole traders and partnerships, the owners’ own pay is not in staff costs: it comes out of what is left.

About £66 of every £100 goes on parts, tyres, paint and other bought-in goods and services. Staff costs have taken a bigger share since 2019, as the trend below shows.

How it has changed since 2019

Vehicle maintenance and repair: turnover rose 32% between 2019 and 2024, against a 24% rise in consumer prices, so it grew in real terms. The number of businesses rose 10%. Staff costs went from 15.6% to 20.6% of turnover, and what was left after staff and bought-in costs went from 11.4% to 13.8%.

What this means for a garage

Compare your business

Vehicle repair garages: Cost Benchmark

Guides that fit this trade

Sources

Put This Into Practice

Free Excel templates for time studies, debtor days and staff costs. Enter your email once and download them all.

Get the Free Templates →

Want an independent view of your own numbers? See the Diagnostic Assessment.