Go Ultra Low urges fleets to use whole life costs
22 May 2015
Go Ultra Low, the campaign which works with the Government to raise awareness of ultra low emission vehicles, is urging fleets to use whole life costs calculations as the basis for company car selection.
Go Ultra Low is made up of car manufacturers including Audi, Mitsubishi, Volkswagen,BMW, Nissan, Renault, Toyota, as well as the Office for Low Emission Vehicles and the Society of Motor Manufactures and Traders.
The campaigning body said that currently the majority of fleets are not using a WLC system as a method of choosing vehicles.
The view from Go Ultra Low echoes the wider fleet industry which echoed that the majority of fleets still aren't using a WLC system to inform their choice of car.
Hetel Shah, head of Go Ultra Low, said: "The balance of costs and benefits are unique to electric vehicles and therefore it is important that Go Ultra Low promotes the advantages of ownership and the financial savings they can deliver on operating budgets to fleet decision makers."
Chris Chandler, principal consultant at Lex Autolease, said: "The intention of legislators is to drive people into electric vehicles. If they are not currently on your fleet now then you need to be looking at how to change policies and get your fleet into a position to move into these vehicles over the next five years.
"Plug-in vehicle list prices are higher than for vehicles powered by internal combustion engines, but when you consider the whole life costs there is a real benefit to the electric option."
Whole life costs reflect all the projected, vehicle-specific costs associated with operating a car over its fleet life, including: vehicle funding inclusive of any VAT recovery and corporation tax relief, the cost of borrowing money, fuel, employer Class 1A National Insurance Contributions, service, maintenance and repair, Vehicle Excise Duty and insurance.
Go Ultra Low says the higher list price for ultra low emission vehicles compared with petrol and diesel cars can be offset by fuel savings, an estimated 20-30% saving in service, maintenance and repair costs and Vehicle Excise Duty and Class 1A National Insurance benefits.