WHOLE LIFE COSTS
A TRUE UNDERSTANDING OF FLEET COSTS

Personal Contract Hire

Choosing your fleet

Many companies use either purchase price or monthly rental cost as the central criteria when acquiring vehicles. However, when taking into account the other costs of running a fleet such as servicing, maintenance, fuel spend etc., the monthly costs may not fully reflect the true costs over the lifetime of the vehicle.

State-of-the-art fleet analysis software

At Agnew Corporate, we utilise the market leading fleet analysis software suite from a top tier professional services firm. This software treats companies and employees as individual entities to provide the optimum solution every time, whatever the situation. The software facilitates the ability to utilise a financial model known as Whole Life Cost (WLC). WLC is the term given to the overall cost for your fleet vehicles over the term of leasing or ownership.

Building your ideal fleet

Using the information specific to your company, Agnew Corporate will build a model showing accurate WLC’s. This software will then illustrate a graphical output and report summary showing the optimum vehicle selection for your company. We will draw up recommendations for tackling your existing vehicle costs, improving efficiency and achieving green objectives.

Importance of incorporating Whole Life Cost:

  • A true indication of fleet costs: WLC can be used to determine the most cost-effective vehicle(s) and appropriate funding methods.
  • Control of your bottom line spending allows for better forecasts and budgeting.
  • Economical fleet of vehicles: Co2 emission value of a vehicle becomes the major influence on WLCs, and if the value is over 130 g/km, costs will be considerably affected. This influences decision makers to select vehicles which have lower Co2 emissions.
  • Increased staff motivation: enhanced banding of vehicles without additional costs
  • Consistent approach: vehicle choice lists are easy to maintain.

Whole Life Cost takes into consideration:

  • Monthly rental and Co2 emissions
  • Funding Costs
  • Running Costs
  • Maintenance
  • Insurance
  • Corporation Tax Rate
  • Residual Value
  • WACC rate (Weighted Average Cost of Capital)
  • Employer’s National Insurance (NI)
  • VAT
  • Fuel Reimbursement
  • Private and Business Mileage

For more information on Whole Life Cost analysis:

Enquire Now 028 9009 7108

 

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