Whole life cost analysis

Whole Life Cost is the total cost of an asset – in this case a vehicle – over the course of its life in service.

Knowing the Whole Life Cost of a vehicle is critical for future planning and vehicle selection, giving you the knowledge you need to avoid unnecessary expenses and plan your expenditure for the coming months and years.

OVL have developed a Whole Life Cost Calculator that takes into account all of the facts and figures that are part of leasing a vehicle. Including:

• Finance costs
• Fuel costs
• Service, maintenance and repair (SMR)
• Insurance
• Benefit-in-Kind Tax
• Class 1A National Insurance Contributions (NICs)
• Any Government Incentives available.

Our calculator helps businesses to ensure they are getting the best priced vehicle for their needs, and not just basing decisions on rental prices.

Accurate Whole Life Cost calculations can make a huge difference to businesses when picking their company car lists. If there’s a car that’s significantly more expensive than its rivals over the course of its service life, you’re going to want to swap it for something more cost-effective.

When you’re trying to streamline a fleet and save money, it’s easy to be drawn into cheaper vehicles with lower headline costs, but a Whole Life Cost calculation will help you find out whether that’s a false economy.

For instance, it may be that one car has lower lease rates, but it’s significantly more expensive to insure and maintain, cancelling out the initial saving. Unless you’re clued up on the car’s Whole Life Cost, you could be making an expensive error.

The benefits of working with OVL to work out Whole Life Cost remain the same whether you’re running a large fleet with hundreds of vehicles, or you’re operating just a handful.

Get in touch to find out more.