Press release -
Small businesses facing big costs to stay on the road
56% of small businesses spend £1,685 per year on each company car
Small businesses in the UK are spending on average almost £1,700 every year maintaining each of their company cars, according to new research by RAC Business - with one in five (20%) spending more than £2,000 per car.
The survey carried out among 1,000 small businesses during the first quarter of the year* found that firms in Scotland are feeling the expense most of all with more than a third (37%) spending between £3,000 and £4,000 annually on company car maintenance.
In comparison small businesses in the East Midlands are the least affected financially, with 44% spending between £1,000 and £1,500 on servicing each of their company cars per annum.
Despite some signs of recovery in parts of the economy small businesses still face financial challenges from running costs and cash flow, which RAC Business says can be helped by looking at alternative fleet management options.
RAC sales director for corporate partnerships Jenny Powley, says: “Keeping a company car fit for purpose does require regular and thorough maintenance – without it, a business is looking at a hefty price tag in terms of unexpected servicing and breakdown costs.
"With the economy still in a fragile state, as business owners know too well, it is vital to keep those unexpected costs to a minimum by looking at different options for your fleet.
“For example, by leasing rather than purchasing vehicles businesses can control costs as servicing and repair can be part of the package. There are other services to support businesses such as breakdown, telematics and accident management that are included in the leasing agreement, depending on the supplier.
“Leasing also gives businesses the opportunity to financially plan ahead in one of their largest areas of spending, which will have a positive impact on the success of that business, potentially cutting out thousands of pounds in unnecessary costs every year.”
ENDS
Notes to editors
*Research conducted by One Poll on behalf of RAC Business, among 1,000 small business decision makers in January 2015.
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About the RAC
First formed in 1897, the RAC has been looking after the needs of its members and championing the interests of drivers for more than 120 years.
Today it has more than eight million members and is one of the UK’s most progressive motoring organisations, providing services for both private and business motorists. Whether it's roadside assistance, insurance, buying a used car, vehicle inspections and checks, legal services or up-to-the-minute traffic and travel information – the RAC offers a solution for all motoring needs. The RAC is committed to making motoring easier, safer, more affordable and more enjoyable for drivers and road users.
The RAC is the motorist’s champion and campaigns to support the interests of its members and UK drivers at a national level. This includes voicing concerns about the increasing cost of motoring, particularly the price of fuel and the high level of tax levied on it, advancing levels of road safety, and supporting the needs of all drivers, from young to old.
The RAC’s annual Report on Motoring – first published in 1989 – is one of a kind and provides a clear insight into the concerns and issues facing today’s motorists.
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