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BUSINESSCAR ROUND TABLE: New Years' thrift - fleet experts talk whole-life costs

Date: 17 February 2014

 

The good, the bad and the costly: the difference between frugal fleets and the ones spending too much

There's a big gap between the good fleets and the bad fleets in terms of how much they're spending and on what. Lex Autolease's Chris Chandler reckons it's down to risk mitigation.

"Five or 10 years ago, people were using whole-life costs to reduce cost. So you'd go in, you'd do the whole-life cost analysis and you would bring about reduced costs to that organisation. The idea was always to try and improve popular choice: maintain the most popular vehicles and drive down cost at the same time.

"Now what happens is where more employees look at their company car and the tax associated with it, the majority are actually making the right decision, so I don't see whole-life costs so much as a cost reduction as risk control.

"You could have quite a good allocation and get a nice, efficient executive car, but where the policy allows, they might be able to have a cheaper performance vehicle that's going to have high CO2, higher insurance costs, higher maintenance costs - and those are the vehicles you're trying to keep out of your policy. So it's more a case of risk mitigation than driving down your costs."

Healthcare at Home's fleet administrator Georgina Smith said driver training was the answer for an easy and professional way of cutting expenses: "We've used driver training to drive down costs. Insurance costs have come down, or at least not gone up, with our fleet size increasing by using driver training. We've also seen our SMRs come down because of the lower accident rates that come with it."



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