Fleet Management
We make fleet management as simple as can be with the right solutions to support your business's needs.
Whole Life Cost is the total cost of an asset – in this case a vehicle – over the course of its life in service. With a Select car lease, that includes the cost of the lease, the cost of any maintenance and the cost of fuel and insurance, balanced with the savings in terms of VAT relief and corporation tax relief.
Knowing the Whole Life Cost of a vehicle is critical for future planning and vehicle selection, giving you the knowledge you need to avoid unnecessary expenses and plan your expenditure for the coming months and years.
By using a Whole Life Cost calculation, Select Fleet Solutions can equip your business with the knowledge that helps you make better decisions.
It is crucial, when looking at vehicle price, to consider every cost that will be incurred, not just the monthly lease rental, or the purchase price.
There are a host of other elements to consider:
All of the above may unlock potential savings by choosing vehicles with a potentially higher lease cost or purchase price. Our Select Fleet Solutions specialists can talk you through your options.
Accurate Whole Life Cost calculations can make a huge difference to businesses when picking their company car lists. If there’s a car that’s significantly more expensive than its rivals over the course of its service life, you’re going to want to swap it for something more cost-effective.
When you’re trying to streamline a fleet and save money, it’s easy to be drawn into cheaper vehicles with lower headline costs, but a Whole Life Cost calculation will help you find out whether that’s a false economy.
For instance, it may be that one car has lower lease rates, but it’s significantly more expensive to insure and maintain, cancelling out the initial saving. Unless you’re clued up on the car’s Whole Life Cost, you could be making an expensive error.
Whole Life Costs are just as important for commercial vehicles as they are for cars. Whether you’re looking for a fleet of vans or hatchbacks, the Whole Life Cost calculations remain more or less the same.
However, because commercial vehicles are often placed in harm’s way more regularly, it’s worth considering the potential impact of any wear and tear or repairs. While vehicle protection and panelling might incur a higher initial cost, it might pay off when it comes to repairs and maintenance.
Whole Life Cost, or the ‘Total Cost of Ownership’, is particularly important when considering Electric or Plug-in Hybrid Electric Vehicles, which may carry a higher monthly lease rental, but deliver far greater tax efficiencies and lower running and fuel costs.
Select Fleet Solutions can reveal the true running cost of all of the vehicles that might be on your wish list - whether they’re traditionally-fuelled, a hybrid or full-electric - to ensure you optimise the selections available to your drivers and maximise efficiencies wherever they present themselves.
In many cases, using this approach, we are able to offer better cars for our customers, while also providing lower running costs. It's a win-win situation for businesses.
When considering Whole Life Cost, the car’s recommended retail price (RRP) is only one of many things to think about. Premium vehicles, which often have higher price tags, are not necessarily more expensive over the course of their life spans, but they are more desirable for staff and act as a status symbol for employees and employers alike.
Because premium vehicles can hold their value more effectively than mass-market models, the lease costs can be lower – at least in relative terms. If you can get a more upmarket car for the same money, that’s a win in our book.
But even if they are more expensive to lease, premium vehicles – particularly hybrid and electric models – may be more efficient than their mainstream counterparts, reducing fuel costs. By the same token, high-specification cars can also be safer than their less well equipped siblings, which may help with insurance costs.
All these parameters must be measured before deciding which vehicles to include on your fleet. Don’t discount premium or high-specification models until you have considered all the options.
Select Fleet Solutions offers a range of services designed to make living with your fleet of vehicles both cost-effective and hassle-free.
That includes Fleet Auditing, Salary Sacrifice guidance and advice, Sale and Leaseback assistance, as well as full Fleet Management.
And we can also calculate the ‘Whole Life Cost’ associated with your fleet lease, enabling you to significantly reduce your spend in the long run.
That remains true whether you’re running a large fleet with hundreds of vehicles, or you’re operating just a handful.
The Whole Life Cost of a vehicle fleet takes into account a range of costs above and beyond just the monthly leasing fee. It gives you a much more comprehensive overview of the advantages and disadvantages of a wide range of fleet vehicles.
Whole Life Cost considers the tax implications, National Insurance, fuel consumption, CO2 emissions, as well as the price of servicing and maintenance.
Knowing the Whole Life Cost of a fleet vehicle can enable you to identify ways in which you can make huge savings over the course of a lease contract. For example, while one vehicle option might offer a lower monthly fee, the Whole Life Cost might actually be much higher than an alternative vehicle. We can arm you with all the facts so that you can make a better-informed decision.
It’s good to know precisely what you’re signing up to when you choose a vehicle fleet. And our Select Fleet Solutions specialists may be able to identify crucial cost savings that you haven’t yet considered. This is particularly important when identifying the Whole Life Cost of state-of-the-art, modern electric vehicles.
Calculating the Whole Life Cost of a vehicle can be enormously beneficial for employees, and it can help with a business’ recruitment, too. An upmarket, and seemingly unattainable, vehicle might actually be a wise choice if it has lower running costs, in terms of fuel, tax and National Insurance Contributions.
Want to know more about our fleet solutions? Get in touch now with our fleet solutions team on our dedicated phone number 0118 304 8690 or simply email them at corporatefleet@selectfleetsolutions.co.uk.