Vehicles off the road costing small firms £500 a day

Friday, May 22, 2015 - 11:53
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Keeping you on the move

RAC Business launches ‘van for van’ replacement service to keep firms on the move

In response to customer feedback the new feature will ensure a customer’s broken down van will be temporarily replaced with another van, if it is not possible to fix the original vehicle at the roadside.

The enhanced Onward Travel service means that wherever the van is, the driver will be able to transfer their load to the van replacement and carry on their journey, while their vehicle is repaired in an RAC approved garage.

The van for van replacement service is one of a number of new features now available a year after RAC Business Club was first launched, which currently has more than 8,500 members from across the UK SME sector.

RAC Business spokesman Mike Fogden said: “Businesses need to keep on the move and the new change we have made to our Onward Travel cover means they are able to transfer their load into a van replacement, and carry on to their job or make their delivery.”

In April, according to the Department for Transport, new van registrations increased for the 12th consecutive month to 24,927 – up 20.9% for the year-to-date.

With the average small business running six to seven vehicles just one day off the road a year, for each vehicle in the fleet, could cost up to £3,500. But the cost could be even higher for a significant number of firms as 33% of those in the survey said they did not even know the financial impact on their business.

Mr Fogden added: “We surveyed 1,000 small to medium-sized firms across the UK and a third of those that knew how much a vehicle off the road cost them, said it was up to £500 a day, and 41% said they were losing £250 a day.

“This clearly demonstrates that being out of action due to breakdown can have a significant impact on the cash flow of a business which is why we are launching this new feature to help keep their business on the move.”

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