FLEET use of franchise dealers for service, maintenance and repair (SMR) has plummeted to an all-time low as rising costs force operators to rethink their workshop strategies.
New data from epyx’s 1link Index reveals a stark shift in where company vehicles are being sent for mechanical work.
While franchise dealers commanded 54% of all fleet SMR jobs back in January 2020, that market share has eroded significantly. By the end of last year, franchise networks were handling just 41% of jobs – a historic low that has locked in through the first quarter of 2026.
The cost chasm
The driving force behind the migration is a rapidly widening gap in workshop door rates.
According to epyx data, average hourly rates at franchise dealers spiked 32% over the six-year period, climbing from £70 to £93. By comparison, independent, non-franchise workshops saw a more modest 27% increase, moving from £43 to £55.
Tim Meadows, Chief Commercial Officer at epyx, explained that fleets have been left with little choice but to vote with their feet.
“Considerable upwards pressures on both parts and labour costs have been seen during recent years, and fleets have reacted by making more use of lower priced, non-franchise workshops in order to minimise these increases.”
Cars vs Vans: A split strategy
However, Meadows noted that the shift is not happening uniformly across all asset types, with fleets adopting a highly segmented approach to risk management.
- Prestige & EVs: High-end company cars and electric vehicles remain firmly rooted in franchise networks to protect residual values and access specialist high-voltage diagnostics.
- Vans & Older Assets: Light commercial vehicles (LCVs) and older, defleeted cars are increasingly being diverted straight to independent garages where a main-dealer digital service stamp carries less weight on the used market.
The general ageing of UK corporate fleets has further accelerated the trend, as older vehicles naturally transition out of manufacturer networks.
Rising professionalism of independent SMR providers
It isn’t just about saving a few pounds, either. The independent garage sector has undergone a massive professional shift, making them far more attractive to corporate buyers.
Meadows added:
“Fleets have spent considerable time developing greater knowledge about which non-franchise outlets meet their needs in terms of everything from technical capabilities to service levels. Some are very impressive indeed and can handle almost any kind of vehicle.”
David Legg, Director of Propositions and Partnerships for i247 Group, a tech-driven services support business, says it is a trend the company has been tracking for some time.
“While OEMs would like to keep SMR business within their retailers, the practicalities of managing fleet budgets means that fleet managers are looking for best value in the market. And, particularly for van fleets, this means looking at the independent sector. We don’t see the trend changing any time soon.”
Photo by Enis Yavuz on Unsplash
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Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
