Cost Analysis
How to save £810 per vehicle per annum!
Click here to book your Free Cost Analysis.
One of the largest independent accountancy firms in Ireland, FGS McClure Watters, undertook a review of the costs of purchasing vehicles versus the fleet managed solution and their findings were a real eye opener.
These figures do not include vehicles which require more than one service/tyre visit per year.
Save another £800 per vehicle on disposal!
These savings exclude the loss of not achieving the full market value of the vehicles on disposal.
Vehicle depreciation levels and costs of vehicle ownership are at an all time high, and many companies are finding that their vehicles are costing them a lot more than they had originally budgeted for. This is especially true at the end of the vehicle life, when the market value of the vehicle is lower than you had expected.
Identifying the hidden costs...
The vehicle purchase price is just one cost in buying a vehicle.
One of the most ignored costs to buying and running your own vehicles is your time to administer the vehicles. For a company with 12 vehicles the amount of time wasted on the management and employee down time with servicing, maintenance, tyres & road tax and the processing of invoices was calculated as a staggering £9,720 per annum.
There are also the service and maintenance costs of the vehicle, which are often forgotten in the cost benefit calculations and these costs can easily spiral out of control as the vehicle ages. It is difficult to budget for maintenance and service costs, which is why vehicle management has become such a popular option. You pay a fixed amount per month which covers the maintenance and servicing costs, plus a good vehicle management company will work with you over the entire contract period to ensure that there are not any nasty financial surprises at the end.
The independent analysis highlighted one of the biggest issues of all relating to the end of life disposal of the vehicle. Cars and vans do not sell themselves and often they are sold below the market value for speed of turnaround, for example at an auction, or because the vehicle has not been prepared to achieve the maximum sale value. On a fleet of 12 vehicles, the analysis showed that by allowing the professionals to handle the disposal, saved the company £9,600.
Getting the right advice...
This is why it is important to seek independent advice from consultants in the industry such as DFC. We look at your specific circumstances, and through our unique Right Choice Programme, we provide honest advice on which vehicle and funding solution would be most advantageous for your business.
With a wide range of options such as contract hire, lease hire, contract purchase, Sale and Leaseback and even personal contract hire for individuals opting out of company car schemes, you can understand why it is important to take the right advice.
Book a free Cost Analysis on your current company vehicles with DFC so that you can benefit from independent, impartial advice on which vehicles and funding solutions would best suit your business both now and in the future.
