Whole Life Cost is a smarter way of selecting vehicles for your fleet which takes into account all the costs associated with running a vehicle, not just the monthly lease payment.
How will it help your business?
Adopting Whole Life Cost reduces your overall fleet costs by helping you select vehicles with better fuel consumption and lower tax and National Insurance Levels.
Why Fleet Alliance?
- Fleet Alliance understands Whole Life Cost and has helped clients achieve savings using this approach for many years.
- The systems Fleet Alliance has developed makes the adoption of Whole Life Cost simple and straightforward.
- To help you see the benefits, we can provide examples of savings based on the current vehicles on your fleet or a vehicle you are considering.
Whole Life Cost example
To show the importance of Whole Life Cost and the life savings that can be made, we compared two fleet vehicles over a three year contract hire agreement.
Despite the Nissan Qashqai having a higher monthly rental than the Kia Sportage, its lower CO2 output means it's cheaper to operate over the lifetime of the contract by more than £2,700. Multiplied across a typical 50 vehicle fleet, the vehicle with the higher monthly rental would actually save you more than £135,000 over the duration of the contract.
|Element||Kia Sportage||Nissan Qashqai|
|Total rental cost*||£15,951||£17,196|
|Total fuel cost*||£7,497||£5,277|
|Tax on lease rental restriction||£364||£0|
|Whole life cost - over contract*||£30,113||£27,362|
|Whole life cost - per month||£668||£605|
*Monthly rental includes maintenance. Total rental cost includes disallowable VAT. Total fuel cost based on combined MPG. Insurance assumes an average yearly cost of £500. Assumes 20% Corporation Tax. Vehicles compared: Kia Sportage Diesel Estate 1.7 CRDi and Nissan Qashqai Diesel Hatch 1.5 dCi Tekna.