It is vitally important that your fleet vehicles are “fit for purpose” and reflect your corporate values.
Zero-emission cars typically have higher list prices than traditional internal combustion-engined (ICE) vehicles, but savings on fuel, maintenance and tax can easily offset any initial difference and make electric vehicles much cheaper.
Whole Life Cost Vehicle Selection
“Fit for purpose” vehicle selection means, for example, that you supply engineers who carry equipment with an estate car that has an easy loading area.
Or drivers who have mainly urban routes are not supplied with a diesel car where the Diesel Particulate Filter (DPF) would become routinely clogged.
You also have a Duty of Care responsibility to your drivers. The vehicles they drive must be properly maintained, safe and legal.
But what fleet cars should you provide for your drivers?
To demonstrate the most accurate information on the cost of running your fleet, CBVC Vehicle Management uses Whole Life Cost modelling.
This factors in all the elements that make up the cost profile of a vehicle. These include:
- Discounted cash price
- Cost of finance (e.g. internal cost of funds, Hire Purchase, Contract Hire, or Finance Lease)
- Forecast Maintenance or Fixed Cost Maintenance
- Fuel consumption, modelled on realistic in-use data (i.e. vans running fully laden or cars used in cities)
- Insurance cover
- Employer’s NI
- Manufacturer’s CO2 emissions and Employee’s BIK tax liability
- Corporation Tax
Our Whole Life Cost modelling defines which vehicles and funding methods are the most cost effective for your drivers and for your business depending on driver requirements and any company car bandings that you may use for your fleet.
CBVC Vehicle Management uses sophisticated costing and analysis tools that make vehicle selection simple and consistent.
Through the direct relationships we have built with most manufacturers, we can negotiate additional discounts for you.
Our knowledge of new technologies, such as Electric Vehicle, Plug-in Hybrid (PHEV) and Hybrid vehicles, enables us to provide the best advice regarding suitability, practicality and cost to you and your drivers.
In particular, where zero emission vehicles are most suitable. While electric vehicles are more expensive to acquire, they can often be more cost-effective over the term of a contract thanks to their lower operating costs. Which is something our Whole Life Cost modelling will help uncover.
Call us on 0330 822 4500 if you would like further information.