Fleet management provider CBVC Vehicle Management is urging financial advisors and accountants to encourage businesses to ignore headline lease rental rates and to instead focus on whole life costs for company car acquisition for fleet cost savings.
According to CBVC, understanding whole life costs is critical, especially as fleets start to accommodate electric vehicles. Focusing simply on monthly lease rates will not only skew fleet policy, but it could lead to greater costs for the business and the driver.
Mike Manners, managing director of CBVC Vehicle Management said, “As the country emerges from the pandemic, many of the historic assumptions about business have been challenged, from working in offices to virtual meetings. The shape of the company car fleet is another area that faces fundamental change.
“As zero-emission cars typically have higher list prices than traditional internal combustion-engine (ICE) vehicles, savings on fuel, maintenance and tax can easily offset any initial difference and make electric vehicles much cheaper. This makes whole life cost comparisons a critical part of any fuel transition plan, to ensure that the right technology options are deployed in the most suitable areas.”