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Ford_servicing
It’s easy to look at the up front cost of proper maintenance, and put it off until tomorrow to save cash. We all know where that leads in the long run

SMALL businesses are losing up to £30,000 a year as a result of having vehicles off the road.

And in most cases the problems stemmed simply from not managing efficiently the company cars in a small fleet.

We’re not surprised by the news that the average SME relies on the business owner or the managing director to carry out the small fleet company car management work.

the average SME relies on the business owner or the managing director to carry out the fleet management work.

On average they are each spending half a day a week on the job, time they could better use for driving their businesses forward.

That was the result of research from Ford Retail, the world’s largest Ford dealer group, designed to help the business community understand the true cost of a poorly managed fleet.

It showed that an overwhelming majority (88%) of small businesses believe they aren’t big enough to warrant a company car management service.

This is despite the fact that the operating even a small number of vehicles could be costing more than is being budgeted for.

In fact 18% of SMEs are putting aside just £1000 a year for their small fleet servicing and maintenance needs, despite it costing closer to £8000.

Those responding to the survey revealed that on average each vehicle spends four days off the road a year, with the cost to the business varying between £200 and £800 a day in loss of manpower and productivity.

Alan Maloney, sales development director at Ford Retail, said of the findings:

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“Our research reveals that many small businesses are seriously miscalculating the true cost of maintaining their fleets, large or small, and in most cases spending far more than is necessary.

“UK plc is looking at SMEs to lift us out of the downturn, and with so many wasting thousands of pounds a year in time and money, we would implore all small businesses to review their fleet requirements.”

He added: “Company car management services are designed specifically to be a cost efficient alternative to managing in-house and is much cheaper than many businesses expect.

“Experts help pick the right vehicle and use their buying power to get the very best rates, manage fuel cost, assist in budgeting, ensure businesses meet all the legal requirements and most importantly, ensure Britain’s small businesses are kept on the road. ”

According to Ford Retail’s research, fuel management and the increasing cost of fuel is the number one fleet management concern for SMEs (56%).

With the average small fleet of 10 vehicles clocking up 156,624 miles a year (15,624 per vehicle), it’s easy to see why.

Other major worries include keeping the cost of maintenance down and budgeting accurately.

 


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