By Sarah Worthington, Corporate Sales Manager at Select Fleet Solutions, part of Select Car Leasing.
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“Leasing a vehicle as part of a fleet is about so much more than just the monthly lease cost. And when it comes to the Whole Life Cost (WLC) of a vehicle, the landscape has shifted significantly. This is what fleet operators need to know.
WLC is a detailed analysis of all direct and indirect costs associated with running a vehicle over its contract length. Calculating WLC can be tricky, even for the most hardened fleet managers with years of experience. That’s where specialists, like here at Select Fleet Solutions, can help.
For starters, WLC looks at a car’s running costs, fuel consumption, insurance, servicing intervals, and Benefit in Kind (BIK) rates for employees, compared with other similar vehicles. More importantly for businesses, WLC also examines tax savings, mileage reimbursement, VAT recovery, and future rules that might come into force. And there are the different fleet finance options available - including Salary Sacrifice, Finance lease and Business Contract Purchase - all which can also have huge WLC implications.
All roads right now lead to electrified vehicles (EVs). EVs and plug-in hybrids might carry a higher monthly lease rental, but they can be far cheaper to run in the long term than their petrol-powered rivals, particularly when it comes to an employer’s Class 1A National Insurance contributions.
Meanwhile recent months have seen a huge surge in used lease vehicles becoming available to fleet managers. The savings here on the monthly lease fee can be enormous, with used lease cars often £100 cheaper than their newer counterparts. Again, there are huge WLC benefits of choosing used.
All in all, whether you have 10 fleet vehicles or 1,000, a dedicated WLC fleet specialist is a key tool in the armoury of any fleet operator.”
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