How much does it cost to stay on the road?
Leasing can help manage running costs
56% of small businesses spend £1,685 per year maintaining each of their company cars, according to research by RAC Business. And one in five of these businesses are spending more than £2,000 on each car.
We carried out a survey among 1,000 small businesses during the first quarter of 2015*. We found that companies in Scotland are feeling the expense most of all, with 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 regular and thorough maintenance each year. Without this maintenance, a business can come up against unexpected servicing and breakdown costs.
Despite some economic recovery, small businesses still face difficulties with running costs and cash flow. One way to keep unexpected costs to a minimum is to look at alternative fleet management options.
For example, by leasing rather than purchasing vehicles, businesses can control costs as servicing and repair can be part of the package. There are also 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 provides the opportunity for a business to financially plan ahead, and potentially cut thousands of pounds in unnecessary costs every year.
*Research conducted by One Poll on behalf of RAC Business, among 1,000 small business decision makers in January 2015.