Emerging brands can be lean and green, says Fleet Alliance
15 February 2010
Emerging brands offer fleet buyers green, inexpensive options which are cost effective to run and cheaper than some of the more familiar mainstream makes, says Fleet Alliance, which believes that models from manufacturers such as Kia Motors can be a genuine option for business users.
Fleet Alliance has produced a whole life cost analysis to back up its claim, taking a typical Kia Cee’d 3 CRDI 1.6 (113bhp)5dr and comparing it with an equivalent Peugeot 308 1.6 Hdi Sport 5dr - two similar, relatively ‘sporty’ mid-range diesel models.
Over a typical three year fleet contract of 75,000 miles, the Kia Cee’d has whole life costs of £13,140 compared to the Peugeot 308’s £16,156. This equates to 17.5p per mile for the Kia, compared to 21.5p for the Peugeot.
The Cee’d’s monthly contract hire rate is lower, too, at £265 per month, compared to £332 per month for the 308. For companies that prefer to buy their cars, the Cee’d has a P11D value of £15,740, while the 308’s is a more hefty £18,670.
When it comes to green credentials, the Kia wins that one too, with CO2 emissions at 119g/km and an average fuel consumption of 62.8mpg, compared to 130g/km and 57.6mpg respectively for the Peugeot.
That all adds up to good news for the company car driver, as well. The driver of the Cee’d would pay a total of £170.52 per month in BIK tax compared to the 308 driver’s £280.05 per month, a huge saving of almost £4,000 over three years.
The Class IA NIC charge payable by the driver on the benefit of having the Cee’d as a company car would be just £785.74, compared to £1,290.45 for the Peugeot.
The Cee’d 3 range also includes an EcoDynamics version which, with stop-start technology, achieves carbon emission of just 110g/km and an improved fuel consumption of 67.3mpg.
“At a time when many businesses are looking to keep the cost of operating their company cars in check, alternative and emerging brands such as Kia are well worth considering,” said Martin Brown, managing director at Fleet Alliance.
“They are often cheaper to run, less polluting and leave company drivers with more disposable income after paying their monthly BIK tax bills.
“If you take our vehicle comparison and apply it to a fleet of, say, 50 cars that would equate to a saving of £150,800 over three years by selecting the Kia Cee’d - a figure that most company finance directors should find very interesting in these harsher economic times.
“Build quality across the entire Kia range is now extremely good, and the company is so confident in the reliability of its models that it offers a standard seven year warranty, the highest in the industry.
“In addition, Kia has just announced a commitment to becoming a more influential player in the fleet market and is determined to increase its market share of business sales. It is partnering with a number of fleet suppliers, including ourselves, to try and increase its presence in the corporate sector,” he added.
To find out whether Kia is the right choice for your fleet, or for details of any other products or services, please contact Fleet Alliance on 0845 601 8407; email info@fleetalliance.co.uk; or visit the website www.fleetalliance.co.uk
15 February 2010
Emerging brands offer fleet buyers green, inexpensive options which are cost effective to run and cheaper than some of the more familiar mainstream makes, says Fleet Alliance, which believes that models from manufacturers such as Kia Motors can be a genuine option for business users.
Fleet Alliance has produced a whole life cost analysis to back up its claim, taking a typical Kia Cee’d 3 CRDI 1.6 (113bhp)5dr and comparing it with an equivalent Peugeot 308 1.6 Hdi Sport 5dr - two similar, relatively ‘sporty’ mid-range diesel models.
Over a typical three year fleet contract of 75,000 miles, the Kia Cee’d has whole life costs of £13,140 compared to the Peugeot 308’s £16,156. This equates to 17.5p per mile for the Kia, compared to 21.5p for the Peugeot.
The Cee’d’s monthly contract hire rate is lower, too, at £265 per month, compared to £332 per month for the 308. For companies that prefer to buy their cars, the Cee’d has a P11D value of £15,740, while the 308’s is a more hefty £18,670.
When it comes to green credentials, the Kia wins that one too, with CO2 emissions at 119g/km and an average fuel consumption of 62.8mpg, compared to 130g/km and 57.6mpg respectively for the Peugeot.
That all adds up to good news for the company car driver, as well. The driver of the Cee’d would pay a total of £170.52 per month in BIK tax compared to the 308 driver’s £280.05 per month, a huge saving of almost £4,000 over three years.
The Class IA NIC charge payable by the driver on the benefit of having the Cee’d as a company car would be just £785.74, compared to £1,290.45 for the Peugeot.
The Cee’d 3 range also includes an EcoDynamics version which, with stop-start technology, achieves carbon emission of just 110g/km and an improved fuel consumption of 67.3mpg.
Model |
P11D (£) |
CO2 |
MPG |
Monthly rental (£) |
BIK bill (£) |
Class IA NIC |
Whole life cost |
PPM |
Kia Cee’d 3 CRDI 1.6 5dr |
15,740 |
119g/km |
62.8 |
265.72 |
6,138.58 |
785.74 |
13,139.77 |
17.5p |
Peugeot 308 1.6Hdi |
18,670 |
130g/km |
57.6 |
332.04 |
10,081.67 |
1,290.45 |
16,155.34 |
21.5p |
“At a time when many businesses are looking to keep the cost of operating their company cars in check, alternative and emerging brands such as Kia are well worth considering,” said Martin Brown, managing director at Fleet Alliance.
“They are often cheaper to run, less polluting and leave company drivers with more disposable income after paying their monthly BIK tax bills.
“If you take our vehicle comparison and apply it to a fleet of, say, 50 cars that would equate to a saving of £150,800 over three years by selecting the Kia Cee’d - a figure that most company finance directors should find very interesting in these harsher economic times.
“Build quality across the entire Kia range is now extremely good, and the company is so confident in the reliability of its models that it offers a standard seven year warranty, the highest in the industry.
“In addition, Kia has just announced a commitment to becoming a more influential player in the fleet market and is determined to increase its market share of business sales. It is partnering with a number of fleet suppliers, including ourselves, to try and increase its presence in the corporate sector,” he added.
To find out whether Kia is the right choice for your fleet, or for details of any other products or services, please contact Fleet Alliance on 0845 601 8407; email info@fleetalliance.co.uk; or visit the website www.fleetalliance.co.uk
Phone: 0845 601 8407 | Email: info@fleetalliance.co.uk | Legal information |
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