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Small businesses lose £3.5k a year on preventable breakdowns

Press Release   •   May 26, 2016 00:01 BST

Small businesses lose £3.5k a year on preventable breakdowns

Small businesses in the UK say they have to deal with vehicles being out of action for almost three working weeks (14 days) on average each year, due to preventable breakdowns. New research by RAC Business* has discovered this equates to an average income loss of £248 per day for each working day lost, or £3,472 across the year**.

Common faults causing employee breakdowns include flat tyres (36%), faulty batteries (25%), electrical faults (23%) and low oil levels (22%), according to business owners and managers who took part in the survey.

The data shows that one-in-five small to medium-sized enterprises (SMEs) believe that up to 50% of these breakdowns could have been prevented if managers received early warning to the problem, and in some cases by using in-car technology such as telematics.

In addition to the financial burden these preventable faults are causing SMEs, there is also a significant impact on business managers’ time, with 42% of firms spending more than 75 hours a year dealing with out of action vehicles.

RAC Telematics MD Nick Walker says: “This is a significant sum of money for UK SMEs to be losing, when a lot of these faults can be detected and prevented before they lead to vehicles breaking down.

“Employees are becoming busier and busier in their working lives and therefore it’s difficult sometimes to stay on top of company car maintenance, especially if the vehicle is shared by several employees in a car pool.

“There is a tendency for people to assume somebody else will deal with issues if it’s not their own car. In that case technology such as telematics can help managers to predict, and therefore prevent possible issues with vehicles.

“Having this sort of data and insight at their fingertips will empower managers to save their business both time and money by reducing avoidable vehicle maintenance.”

ENDS

Notes to Editors

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About the RAC

With more than eight million members, the RAC 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 motorists at a national level, including advancing levels of road safety, supporting the needs of young drivers and voicing concerns about the increasing cost of motoring. The RAC’s annual Report on Motoring – first published in 1989 – provides a clear insight into the concerns and issues facing today’s motorists.

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Key facts:

  • RAC patrols fix four out of five vehicles at the roadside and on average within 30 minutes
  • RAC vans carry more than 500 parts and tools to get members’ vehicles going again
  • 92% of members would recommend RAC Rescue to their friends and family