Whole Life Costs
Redefine your car fleet policy and save money
Many businesses consider depreciation or the monthly lease rental as the most important factor to consider when thinking about company cars. But in fact, the monthly rental can equate to less than ½ of the overall monthly cost of running a company car.
To demonstrate, see the below example, which is based on a typical 36-month / 60,000-mile contract:
Whole Life Cost calculation example
| Ford Focus 2.0 Zetec S 5dr | Volkswagen 1.6 TDi 105 BlueMotion 5dr | |
|---|---|---|
| List Price | £17,395 | £18,715 |
| Total Mileage | 60,000 miles | 60,000 miles |
| Fuel Consumption | 39.8 mpg | 74.3 mpg |
| Typical Fuel Cost | £5.24 per gallon | £5.36 per gallon |
| CO2 Emissions | 169 g/km | 99 g/km |
| Tax Benefit Rate | 22% | 13% |
| Typical Monthly Rental | £295.37 | £289.37 |
| Typical Maintenance Rental | £46.17 | £33.49 |
| Non-claimable VAT | £29.54 | £28.94 |
| Class 1A NICs (car) | £44.93 | £28.56 |
| Lease Rental Restriction | £12.41 | £0.00 |
| Class 1A NICs (fuel) | £45.54 | £26.91 |
| Monthly Fuel Costs | £219.30 | £120.33 |
| Whole Life Cost per month | £693.26 | £527.60 |