New GE Capital survey finds that true fleet operating costs may be overlooked
44% of businesses use maximum monthly rental as the main criteria when working out the cost of their employees cars
New research from GE Capital shows that businesses are now using several criteria to monitor the cost effectiveness of their fleet but they may be failing to account for the total cost of running a fleet, leading to unexpected financial costs at the end of the year.
The latest Company Car Trends Survey from GE Capital reveals that just under half of all businesses (44%) now consider the maximum monthly rental as the key measure for calculating the cost of company cars. Furthermore, in an environment where companies are concentrating on cost savings, a fifth of companies (21%) focus on vehicle cost per mile. However, neither of these measures can provide a company with the total cost of fleet ownership.
Gary Killeen, UK Fleet Commercial Leader, GE Capital, said: "Given the current economic climate, it is surprising that businesses are not more focused on making savings to the overall cost of their fleet. Without taking into account all the extra costs in operating a fleet, such as vehicle insurance, national insurance costs and the impact of corporation tax, managers can find they are in for a nasty surprise at the end of the financial year.
Interestingly, the level of carbon dioxide emitted from vehicles, stated by 59% of managers, has replaced fitness for purpose, stated by 52% of managers, as the most important criterion for fleet decision makers when considering a choice of car.
Other factors cited by employers when choosing their fleet include safety features (mentioned by almost a quarter (24%) of companies), maximum engine capacity (16%), and brand image (12%). But loyalty to locally-manufactured cars is no longer favoured, with just 3% viewing cars produced within the EU as a priority when choosing their fleet vehicles.
Gary Killeen concluded: "It is important that businesses have the right balance of all these factors when working out their best choice of fleet. Our dedicated Key Solutions team helps to identify the most suitable vehicle for businesses while maximising cost savings - all our customers use the total cost of ownership when calculating their fleet costs. Missing out on the right calculation could prove inefficient and extremely costly in the long run."
Angela Goulding
GE Capital
[email protected]
0870-458-8421
Michael Goodbody
GE Capital EMEA
[email protected]
+44-207-302-6269
+44-7899-808-239