Wholelife Costs
Wholelife Costs for Fleets
When considering your fleet costs, wholelife costs is the term given to the overall cost your fleet vehicle over the term of leasing or ownership.
The Whole Life Costs take into account all the related factors over the holding period: the acquisition price (not P11D price), level of depreciation, servicing and maintenance costs, company car tax plus running costs – including likely fuel expenditure. They’re the only accurate way of calculating the true cost of running a vehicle.
Residual Value
Residual value is the amount fleet vehicles are worth once the leasing contract has come to an end or when the vehicle needs to be changed. There is certain information we can use to estimate a vehicle’s residual value, such as information from vehicle manufacturers, auction prices and historical residual data for vehicles. But it ultimately comes down to how much a used car buyer is prepared to pay for it.
You need accurate wholelife costs if you’re to make the most cost-effective decisions when acquiring fleet vehicles. Well informed businesses can make considerable savings by managing the wholelife costs of their vehicles.
Here at Fleet News we have put together a collection of articles and advice to help fleets manage their wholelife costs, click on the articles below to read more.
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Fuel cards: The Benefits
A recent white paper published by AllStar reveals the cost benefits of using a fuel card.
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Policy restrictions: the human vs cost debate
Sarah Tooze outlines 10 key policy restrictions companies should consider.
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Funding: Wholelife costs
A wholelife cost approach factors in costs associated with running a vehicle over its lifetime and is regarded as the most efficient way to set choice lists.
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Congress: Lex Autolease on using wholelife costs to select vehicles
Fleets that don’t need to use a whole life cost model when selecting vehicles need to reconsider, according to Lex Autolease.
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Wholelife costs: the way forward for fleets?
Fleet experts discuss the complexities behind wholelife cost calculations.
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What kind of fleet saver are you? Take the online quiz.
In this quiz from Hitachi Capital Vehicle Solutions, you can answer a series of questions to ascertain what kind of fleet saver you are.
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Wholelife costs explained
Wholelife costs is the term used to refer to the total cost of ownership over the life of a fleet vehicle.
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Running costs for fleets
The running costs is the overall running costs of the fleet vehicle including SMR costs, depreciation and fuel costs.
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Residual values explained
The residual value is the definition given for the value of the vehicle at the end of the term.
