Whole Life Costs should be top consideration for fleets warns KeeResources as September new car registrations loom
KeeResources, a leading provider of automotive data to vehicle manufacturers, retailers and the fleet industry, has warned fleet managers and companies that whole life costs should be top of their list of factors to consider before buying or leasing company vehicles.
Mark Jowsey, commercial director at KeeResources, said: “With September peak new car registrations this month, and company budgets being squeezed ever tighter, whole life costs should be the prime consideration before signing contracts.
“Vehicle manufacturers are launching new ranges of lower CO2 efficient vehicles every month and this presents fleet managers and companies with significant opportunities for reducing costs for those with access to the latest automotive market data and the right forecasting tools.
“Two elements of whole life costs set to rise next year are employee Benefit-in-Kind (BIK) tax and employer NI contributions. In April 2012, the BIK low rate ten per cent tax band will drop from the current 120g/km to 99g/km with BIK increasing by one per cent for each five g/km rise in a car’s CO2 emissions.”
Whole life cost calculations involve complex forecasting, affected by numerous factors including company car policy, specification levels, residual values, SMR, disposal arrangements, fuel policy, fleet insurance and supply terms plus the impact of employers’ NI and BIK tax liabilities for drivers.