Of those surveyed, increased petrol prices alone have led to a 22% increase in business costs since January 2022.

In the Edinburgh area, 60% of motor trade businesses have or will experience redundancies before the end of the year, compared to 57% in Glasgow. Both show a bleak picture for motor trade professionals in these cities.

There are many factors which could be impacting this, both directly in the form of supply costs increasing to indirectly through the cost of living’s impact on the population. A recent RAC report stated that young people are increasingly putting off car checks and repays due to their own squeezed finances.

In order to establish the facts and learn about the severity of inflation-based challenges affecting the nation, a specialist motor trade insurance provider, ChoiceQuote, commissioned an independent survey of 303 motor trade professionals in the UK. The picture it paints is a pessimistic one.

A total of 92% of the professionals surveyed in Scotland said that their business is facing serious or very serious issues linked to inflation.

How is this affecting the industry’s business decisions?

One in six expect their company to struggle, and over half (58%) expect trading to remain stagnant. 8% expect the will  A total of 50% of motor trade professionals in Scotland are expected to have reduced working hours within their business before the start of 2023. 67% of Scottish motor trade businesses have already increased customer prices this year, and 17% will be looking to increase prices before the year is out.

Decision makers are making the tough decision as to whether they persevere through these difficult times or switch to a different kind of work due to the strain that the inflation crisis has had on their professional and personal life. A further 2 in 3 (67%) motor trade professionals feel more stressed due to the impact of inflation on their personal finances (80% in Edinburgh and 57% in Glasgow).

Derek Henry, managing director of ChoiceQuote, commented: “It’s definitely a worrying outlook. In recent months, rising new and used cars, as well as fuel prices have meant that many businesses and traders have had to rethink their strategy or make some incredibly tough decisions on their future.”