Whole Life Cost - do you know the true cost of your fleet?
When considering your fleet costs, whole life costs(WLCs) take into account all of the related elements of running a vehicle over the entire holding period, not just the monthly rental.
Whole Life Cost should include:
- Monthly rental
- Disallowable VAT
- Fuel costs
- Employers National Insurance Contribution
- Lease Rental Restriction (LRR) - CO2 based allowances that can be factored in based on the corporation tax rate of your business
- Vehicle insurance premiums
Adopting a WLC strategy goes beyond the funding costs and may show that a vehicle with a higher monthly rental is actually more cost-effective over the full term of the contract once whole life cost factors have been accounted for.
1st Choice Vehicle Finance can provide detailed Whole Life Cost comparisons and show fleet managers how potential savings can be made.
The monthly rental really isnï¿½t the true cost - to discuss Whole Life Costs in more depth please contact one of the team on 01323 489806.