BUSINESSCAR ROUND TABLE: New Years' thrift - fleet experts talk whole-life costs
Date:
17 February 2014
The hidden expense of running a fleet
KeeResources' Mark Jowsey explained that a lot of the expenses involved in running business cars have historically slipped through the net because operators don't recognise them.
"When I first came to whole-life cost, what fascinated me was that, in those days, talking to manufacturers, they'd tend to talk in terms of depreciation, SMR and fuel - and that was about it.
"But in my early days talking to fleet operators, it was a case of 'what are you including and why?' and 'why are you only including those three elements?'. Persuading people to put National Insurance in at that time was a real uphill struggle. In a lot of cases, nobody ever turned up in a fleet manager's office and said 'can you sign off this NI?'. It's nicely hidden away in payroll."
He concluded that such omissions still go on today: "That still continues in a lot of areas and these things don't get perhaps the focus they deserve."
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