Decoding Fleet Management - what is whole of life cost?

If you have already done some research into how a fleet management service could benefit your business, you might have come across the term 'whole of life cost'.

Put simply, a whole of life cost evaluation is a thorough assessment of the current and potential future expenditure a vehicle is likely to cause to your business.

This encompasses a range of factors and variables, including the obvious, such as the price of the vehicle to register, to less straightforward elements such as potential resale value.

A good whole of life assessment will also look into fuel consumption costs of the vehicle in question and determine how efficiency improvements could potentially be made.

Not only that, but a whole of life assessment will also evaluate servicing and maintenance costs to ensure you understand where expenditures are occurring, so you can make the right decisions as to how to minimise these costs.

By contracting a fleet management service to undertake a whole of life cost evaluation, you can determine which of your company's vehicles are running most efficiently and which are in urgent need of attention.

By arming yourself with this knowledge, you give your organisation a better chance of continued future success and improved bottom line.