Accounting for the total cost of each vehicle in your fleet involves considering all aspects of vehicle ownership. By looking at the Whole Life Costs of your vehicles, you can accurately assess how expensive it will be to run your fleet.
You need to assess the Whole Life Costs before you make a decision on which cars to buy. At first glance, it may seem more cost-effective to buy cars for £10,000 rather than models that cost £15,000. But if the cheaper cars cost £3,000 more a year to run, then it will only take two years of fleet ownership before you start ‘losing money’, in effect.
Whole Life Costs include the following:
• Acquisition price
• Level of depreciation
• Servicing and maintenance costs
• Fuel expenditure
• Other running costs, including replacement parts and accessories.
Assessing these costs before you purchase your fleet vehicles is the only way to gain a true understanding of what the total running costs will be. Making a cost-effective decision on which vehicles to purchase depends on these figures, so it is important that you find as much information as possible before you sign a contract.
Vehicle depreciation is the largest Whole Life Cost to consider, with up to 45 percent of the total running cost taken up by this. Depreciation is worked out through finding the difference between the purchase price and the price it is worth at disposal – known as the residual value. We can provide you with an approximate residual value for your vehicles when you buy them from Gates. This is done using information sourced directly from Ford and current auction prices.
The Ford Whole Life Cost calculator can help you find out which vehicles will save you the most money in the long run. If you have any questions about fleet Whole Life Costs or want to find out more, contact your nearest Gates Ford dealership today