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BusinessCar editor Paul Barker asked attendees for the "easy wins" associated with whole-life costs, to which KeeResources' Mark Jowsey responded immediately with: "Writing down allowance - the impact of low-CO2 product and rental disallowance."
He cited an example of an employee who had chosen a car with a 2.2-litre diesel engine: "The way [the company] deals with reimbursement and private mileage meant his costs actually went up overnight compared with the 2.0-litre product he was previously driving - and he wasn't aware of that."
Lex Autolease's Chandler described the 130g/km lease rental restriction as "sudden death" for costs as soon as a fleet exceeds it. "The second you go over that, 15% of the finance is lost and you can't recover it."
He added that correct analysis of fuel was a vital way to make money go further: "It all depends on how you do your fuel. We'll go to a customer and we'll ask 'right, what's your fuel policy?' because people sometimes calculate fuel at the official mpg for business mileage they do - if it's a fully expensed fleet they'll do it by the entire fuel bill, if the fleet is sensitive to the fact that typically drivers will not get the official mpg then [they] add the EST, now HMRC, 15% levy on that.
"It's important when there are elements such as that that you don't overlook these things from a whole-life cost perspective. Whole-life costs should reflect as closely as possible what that customer is doing."
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