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 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.