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Small businesses facing big costs to stay on the road

18 May 2015 at 13:36

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.”


Notes to editors

*Research conducted by One Poll on behalf of RAC Business, among 1,000 small business decision makers in January 2015.

For further information, please contact:

Simon Peevers, RAC Business PR Manager: 01454 665562 / 07966 610 774

RAC Press Office: 01454 66 4123
Twitter: @RAC_Business

About RAC Business Services

RAC is one of the UK's most progressive motoring organisations, providing services for both private and business motorists.
RAC Business offers a comprehensive range of services and products for UK businesses of all sizes and currently has around 24,000 corporate and SME customers.
Products available include: fleet breakdown coverage, telematics, fuel cards, inspections, training, commercial business and motor insurance, fleet management (Business Club) and risk management services, as well as truck breakdown, truck warranty and insurance for vehicles from 3.5t to 44t.
Any new business customer that joins through breakdown, telematics or our fuel card automatically becomes a member of the RAC Business Club.

RAC Business Club services include:

  • Driver/employee record logging
  • Fleet vehicle database
  • Breakdown product access and administration
  • RAC Fuel Card access, reporting and administration
  • Maintenance and repair booking, schedules and documentation
  • Ability to request quotes for other RAC products
  • Ability to produce and download customised reports based on the above
  • Access to exclusive member discounts through the RAC’s automotive partners, including tyres, glass, servicing, MOT, repairs and hire vehicles

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