What is Whole of Life cost?

As every good fleet manager knows, the amount it costs to purchase a new car for your fleet is just the tip of the iceberg.

Every phase in your cars' lives will come at a price, and being able to figure out the cumlative cost of a particular vehicle from acquisition to disposal - otherwise known as the Whole of Life cost of a vehicle - is a skill that could save you time and money.

Calculating and comparing the Whole of Life costs for every vehicle in your fleet will enable you to track how much money you're putting into individual cars over a period of time versus the amount of actual use you're getting out of them.

Equipped with this knowledge, the clever fleet manager can make educated and strategic decisions about when to dispose of certain cars and procure new ones in their stead.

There are several calculations involved in determining a vehicle's Whole of Life cost, according to the Victorian government's Funded Agency Channel.

The purchase price (which covers everything from third-party insurance to registration, motor vehicle duty to number plate fees), depreciation, recurring fixed costs and operating costs of the car (which include servicing, maintenance and fuel usage) are all taken into consideration, and a total projected cost is arrived at.

At Smartfleet, we offer a state-of-the-art fleet management program that includes a Whole of Life cost model.

This tells you exactly what you are spending on each and every car per month, as well as how many cents per kilometre your individual vehicles are setting you back.

If you outsource your fleet services to us, we will also compare the Whole of Life costs for certain vehicles with others of similar engine type, model and size, so that you can make decisions that will increase the efficiency and cost-effectiveness of your fleet.