Firms still not looking at bigger picture of vehicle costs
The latest Company Car Trends Survey from GE Capital reveals that just under half of all businesses (44%) now consider the maximum monthly rental as the key measure for calculating the cost of company cars while a fifth of companies (21%) focus on vehicle cost per mile. However, GE Capital points out that neither of these measures can provide a company with the total cost of fleet ownership.
Gary Killeen, UK fleet commercial leader, GE Capital, said: 'Given the current economic climate, it is surprising that businesses are not more focused on making savings to the overall cost of their fleet. Without taking into account all the extra costs in operating a fleet, such as vehicle insurance, national insurance costs and the impact of corporation tax, managers can find they are in for a nasty surprise at the end of the financial year.'
Interestingly, the level of carbon dioxide emitted from vehicles, stated by 59% of managers, has replaced fitness for purpose, stated by 52% of managers, as the most important criterion for fleet decision makers when considering a choice of car.
Other factors cited by employers when choosing their fleet include safety features (24%), maximum engine capacity (16%), and brand image (12%). But loyalty to locally-manufactured cars is no longer favoured, with just 3% viewing cars produced within the EU as a priority when choosing their fleet vehicles.
Gary Killeen concluded: 'It is important that businesses have the right balance of all these factors when working out their best choice of fleet. Our dedicated Key Solutions team helps to identify the most suitable vehicle for businesses while maximising cost savings – all our customers use the total cost of ownership when calculating their fleet costs. Missing out on the right calculation could prove inefficient and extremely costly in the long run.'For more of the latest industry news, click here.