Small businesses spend almost £1,700 per year to maintain each company car
Business owners in Scotland have highest annual maintenance costs for fleets while the East Midlands has the lowest run rates
More than half (56%) of Britain’s small businesses are spending £1,685 per year on maintaining each of their company cars, according to research by RAC Business.
The report, which surveyed 1,000 companies, found that 20% of businesses spend more than £2,000 per car, with more than a third of firms in Scotland spending the highest at £3,000 and £4,000 annually.
In contrast, small businesses in the East Midlands have the smallest average annual cost for company cars, with 44% spending between £1,000 and £1,500 on servicing each car.
The figures are said to evidence how Britain’s smaller companies are increasingly facing financial challenges such as running costs and cash flow, despite signs that the economy is recovering elsewhere.
RAC sales director for corporate partnerships Jenny Powley, commented: “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.
“Leasing rather than purchasing 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.”