The Co-operative Motor Group has cut its labour rates by at least a quarter and introduced interest-free loans for aftersales customers at its dealerships.
The moves form a group initiative entitled ‘Driving Down The Cost of Motoring’ and are being accompanied by a marketing campaign to raise awareness of its services.
The Co-op said it has reacted following research by the RAC that the cost of running a new car is now almost £6,000 per year.
Its measures could save customers owning a small car such as a Peugeot 207 up to £550 per year, it said.
Tony Guest, general manager, said: “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."