Company Cars Costing Small Business’s an Arm and a Leg
Published Date: 11th Jun 2015
Over 50% of small businesses spend around £1,600 on each company car, and this is just the cost of maintaining them.
Small businesses in this UK are being hit with high spending of over £1600 to maintain each company car on their books and 20% of company cars cost over £2,000 each year, these figures have been put together by RAC business.
RAC’s survey of 1,000 cars in the 1st quarter of the year found that Scotland suffered the most with a third of them paying between £3000 and £4000 on company car maintenance over the year. The big winners were in the East Midlands with 44% of small businesses paying between £1000 and £1500 a year.
Jenny Powley – Sales director for corporate partnerships at RAC explained: “Keeping a new ompany 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.”