Whole Life Cost (WLC) is a financial model to help show the true cost of running a vehicle, incorporating all costs rather than just monthly rentals. There are many elements to running a vehicle and by taking them all into consideration you are able to make better and more cost efficient choices for your fleet.
WLC gives you a fuller picture of the costs associated with running a fleet. We can offer a customised view of your fleet to help you review your current policies and/or vehicle choices.
The adoption of WLC for your quotations can provide the opportunity to review cash allowances for vehicles, or even include vehicles that you may have thought were not suitable. This can help bring cash takers back into the fleet helping you improve your work-related road safety exposure.
WLC goes beyond the basic cost of funding vehicles by taking into account operating costs such as fuel, National Insurance Contributions (NIC) and vehicle insurance. It also takes into consideration any available Tax allowances.
Often a vehicle with higher funding costs may be the more cost-effective option over the life of the contract, when viewed on a WLC basis.
Whole Life Cost includes:
- Monthly rental - reflecting changes in Road Fund Licence and CO2 based Capital Allowances
- Disallowable VAT - allowing your business to take advantage of your true VAT position
- Fuel costs - in addition to options for fuel and diesel costs, we can customise fuel costs based on your pence per mile rate, as well as separating business and private mileage
- Employers National Insurance Contribution
- Vehicle insurance - costs can be included
- Lease rental restriction - CO2 based allowances can be factored into WLC based on the Corporation Tax rate of your business
- Fleet Administration fee - to help recognise the administration of your fleet within monthly rentals
How it works
Our WLC model is supported by our Strategic Fleet Consultancy team and Relationship Managers, who can provide advice and support to help you define and implement the most suitable fleet policy for your business.