A new wholelife costs guide has highlighted significant differences in the cost of running vehicles that have similar P11D values or lease rates.
Fleet managers can fall into the trap of comparing new vehicles based on their retail price or contract hire monthly rate, but the difference in the cost of running them over three years can vary by thousands of pounds.
By taking into account ‘hidden costs’ such as actual cost per mile, capital allowances determined by CO2 emissions, leasing disallowance, VAT, corporation tax, depreciation, fuel efficiency, vehicle excise duty, employer’s National Insurance, insurance and service, maintenance and repair costs, a company can save as much as £3,366 on a typical fleet car.
“Some fleet managers still do not realise that the difference in wholelife costs can be substantial.
"Even if it is a cheaper car to lease, it can be a lot more expensive overall,” said Mark Sinclair, director of Alphabet, which has launched the guide (available from www.alphabet.co.uk).
* Visit our running cost section here.