What is Whole of Life cost?

When buying a new vehicle to add to a fleet, every good fleet manager knows the purchase price is just the tip of the iceberg.

Preparing your business for the expense of purchasing, owning and operating a vehicle for the entire duration of ownership is an important step in managing fleet costs.

In order to effectively estimate these cumulative costs and potentially reduce fleet expenses, it is crucial you understand the Whole of Life cost of a car.

Calculating the Whole of Life value for your fleet vehicles includes adding up the purchase price, the cost of insurance, depreciation, recurring expenses such as registration, operating expenditure and potential repairs. 

The ability to calculate and compare the Whole of Life costs for various vehicles is an essential skill when minimising your fleet expenses. This will enable you to understand which cars will offer your fleet good value from purchase to disposal and will allow you to accurately estimate fleet costs.

There are a number factors that can influence the Whole of Life cost for the cars in your fleet. This includes fuel consumption rates and the price of fuel, the value and accessibility of parts when doing repairs and insurance premiums charging based on industry developments or driver activity.

It can therefore be difficult to accurately estimate the Whole of Life cost for your fleet. If you're unsure about the process, you may wish to invest in a comprehensive fleet management program that includes a Whole of Life cost model.

At Smartfleet, we offer state-of-the-art Whole of Life cost software that can tell you exactly what you are spending on each car in your fleet each month.

Additionally, if you decide to outsource your fleet services to us, we can compare your Whole of Life costs with other vehicles on the market to help you improve the expenses and efficiency of your fleet.