The survey carried out among 1,000 small businesses during the first quarter of the year found that firms in Scotland are feeling the expense most of all with more than a third (37%) spending between £3,000 and £4,000 annually on company car maintenance.

In comparison small businesses in the East Midlands are the least affected financially, with 44% spending between £1,000 and £1,500 on servicing each of their company cars per annum.

Despite some signs of recovery in parts of the economy small businesses still face financial challenges from running costs and cash flow, which RAC Business says can be helped by looking at alternative fleet management options, such as leasing packages with servicing and repair included. Building in products such as breakdown, telematics and accident management can also help fleets avoid unexpected costs.

RAC sales director for corporate partnerships Jenny Powley said: “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.”