Ogilvie True Cost Gives Fleet Chiefs the most Accurate Whole Life Cost of Company Cars
15th April 2013
Ogilvie Fleet is providing customers and prospects with the most accurate whole life costs as industry debate rages over the inaccuracy of some figures provided to fleet managers.
The fast-expanding, multi-award-winning independent leasing and fleet management company launched Ogilvie True Cost three years ago. Ogilvie True Cost takes the principle of whole life costs as its base and then adds in crucial elements to provide customers with a far more accurate representation of the actual costs associated with vehicle operation (see examples below). Whole life cost calculations from contract hire and leasing companies are often based on only an effective rental plus the cost of fuel. But, all contract hire quotes from Ogilvie Fleet provide fleet managers with the 'total effective rental' - finance and service costs plus VAT (50% disallowed). The company then adds in the cost of fuel, but critically also takes account of employer Class 1A National Insurance contributions and subtracts a corporation tax saving before adding back in to the calculation any applicable lease rental disallowance to provide customers and prospects with Ogilvie True Cost. Ogilvie Fleet sales and marketing director Nick Hardy said: -Ogilvie True Cost is a far more accurate representation of the actual costs associated with the operation of the vehicle and allows a far more precise comparison to be made between different models. -Ogilvie True Cost provides fleet decision-makers with the true operating cost of any specific vehicle. Mr Hardy's comments were made in the light of a call by KeeResources, a provider of automotive data to the fleet industry, retailers and vehicle manufacturers, for a -minimum level of data to be included as standard in calculating whole life costs. Mr Hardy said: -Whole life cost calculations from contract hire and leasing companies are often based on a just an effective rental plus the cost of fuel. This does not provide an accurate figure in terms of the real world cost of leasing vehicles. -Ogilvie True Cost shows a lower, more accurate cost than a traditional whole life cost analysis and allows a fleet manager to make a far more accurate comparison between real vehicle costs. -Many fleet decision-makers and drivers use monthly rental rates to compare and select vehicles but unless all applicable figures are included the real world financial picture is distorted. He concluded: -Factors such as employer's Class 1A National Insurance and any applicable lease rental disallowance as well as Corporation Tax are hugely important in calculating the real world cost of company cars. However, too few businesses take these numbers into account when compiling vehicle choice lists based on rental rates or perceived whole life costs. That is why Ogilvie True Cost is the real barometer of whole life costs.