The Co-operative drives down the cost of motoring

January 10, 2011

Soaring motoring bills could be cut by a tenth with a new scheme launched by The Co-operative Motor Group.

Part of The Co-operative Group, the motor trader has slashed the cost of its labour rates and introduced interest free loans to pay for servicing and repairs across its dealerships.

The ‘Driving Down The Cost of Motoring’ initiative has been launched by The Co-operative Motor Group in response to the rising cost of running a new car which has soared to £6,000 a year.(1) With the combined savings, motorists could pocket more than £550.(2)

Despite a national rise in garage labour rates, The Co-operative Motor Group has reduced its labour rates by more than 25 per cent to charge from £50 (3) – 40 per cent less than the average franchised dealership.

(4)Service customers needing repairs can apply for a 12 month interest free loan to cover the cost of said repairs and items such as accessories and warranties between £300 and £3,000. (5) The offer is also available to existing service plan customers to pay for any additional repairs.

Customers can also arrange an MOT and service from £89. This includes free collection and delivery of the vehicle or a courtesy car. Trained technicians will check safety critical items including lights and electrical features, brakes, tyre tread depth and under the bonnet, in addition to replacing the engine oil (6)

Tony Guest, General Manager at The Co-operative Motor Group, said: “With rising fuel and insurance costs, many people will be putting off getting work done. Carrying out essential maintenance is a necessity and in the wake of the austerity measures we know people are worried. That’s why we have launched the initiative to take some of the financial pressure away from consumers and to offer more flexibility.

“People’s safety should not be compromised because they cannot afford to pay for their repairs and by getting proper checks done, vehicle owners can save money in the long-term by spotting minor problems that can be fixed easily before they develop into a costly repair.”

The Co-operative Motor Group recently launched an Aftersales Charter and Price Promise to reinforce its commitment to offering a transparent and fair approach to doing business.

Under the Charter, the Price Promise will match any like-for-like servicing and repair quote using genuine manufacturer parts. Customers can also be reassured every invoice will be explained in full, detailing the work completed, applicable charges, and the benefits of labour and parts guarantees. 

A duty of care commitment also means that even if a customer decides not to have any work done, a free vehicle safety inspection will be carried out.


Additional Information: 

1 According to the RAC the cost of running a new motor has risen to £5,869.


2 Typical costs based on Peugeot 207 1.4 litre.


Tyres x2
Parts (head gasket)
Labour rate for changing part (8.5 hours)
Interest on a personal loan for tyres, parts and labour (over 12 month period)
The Co-operative Motor (new model)
- - £110
- £1435.50
The Co-operative Motor (vehicle 3 years or older)



- £1424
Franchised dealership
£98 £117


* Personal loan of £1,400 paid back over 12 months at 18.7% APR = £1534.32.


3 Labour rates for cars three years or older are £50 per hour. For new cars (1-3 years), the labour rate costs £65 per hour.


4 The Warranty Direct Labour Rates Survey 2010. The average franchised dealer labour rate is £90.59 per hour, up from £87.19 in 2009. The average independent garage rate cost £55.90.


5 The 0% APR loan facility is available via Barclays Partner Finance. Customers must be over 18 and undergo a credit check.


6 Oil replacement applies to vehicles with engines up to two litres. 9 in 10 cars will qualify for the oil change based on 2009 figures