Money is biggest concern for almost half of van drivers amid rising costs and late payments
Over half (52%) of tradespeople are concerned about the impact of the cost of living crisis – up from 36% a year earlier – with one-third (36%) admitting to worrying about money every week in new research commissioned by Volkswagen Commercial Vehicles.
Rising prices for materials (46%), as well as tax and regulation changes (39%) were the top two factors driving cost increases, according to the survey of 1,000 UK van drivers.
And it’s not just hikes in materials and rates that can come as a surprise – in the last year, van drivers forked out an average £566.32 on vehicle repairs and maintenance, and £883.26 (ave.) for van insurance, with one in three (34%) spending over £1,000 to cover their van.
Alongside mounting costs, many small businesses are plagued by late payments, with an average of £3,399.51 owed, impacting companies’ cashflow and security. In fact, 1 in 3 (32%) businesses identified late payments as a barrier to growth.
With overhead costs mounting – and late payments impacting liquidity – it comes as little surprise that van drivers are feeling the strain on their mental health and wellbeing; with 47% of drivers surveyed citing financial pressures as their leading cause for concern.
Richard Welch, technical training & development manager at Volkswagen Commercial Vehicles, said: “Tradespeople are facing a perfect storm of rising costs from materials as well as economic changes placing undue pressure on small businesses all over the country.
“It’s therefore never been more important to plan ahead, avoid unexpected pay-outs and spread the cost with vehicle service plans. Our all-in service packages allow customers to do just that, with peace of mind and no hidden costs.”