We define WLC as including monthly rental, disallowed VAT, Class 1A National Insurance, fuel and Lease Rental Restriction. Using the WLC basis ensures all costs associated with running the vehicle are considered. We have focused on petrol, diesel and hybrid, because the cost profiles of alternativelyfuelled vehicles often depend on how and where the vehicle will be used, how the fuel is sourced and whether bunkering is used. Also, vehicle conversion costs can vary significantly, with many fuel options not available from car manufacturers.

As the charts below² show, the monthly running costs for seemingly similar cars vary significantly, with fuel efficiency and tax playing a significant part in the overall cost profile. The second cheapest car by list price has the highest WLC, and the car with the highest rental rate has the lowest WLC. While all the cars have similar monthly rental rates there is nearly a �5,000 difference in WLC terms over the four years. Therefore the best advice for cost effective fleet management is to select vehicles using WLC principles. This naturally encourages vehicles which are more fuel and tax efficient. Focusing on CO2 can reduce tax, fuel costs, VED and benefit the employee by reducing their company car tax bill.

2 - The WLC examples shown above are based on a typical client to reflect some levels of manufacturer discount and have been run through Deloitte's Car Cost model. Further details available on request.