We’re always surprised just how many public sector organisations don’t have the right fleet finance package. There are a range of factors (seven in total) you need to understand to get the right finance solution. Yet, many deals are struck with only limited understanding of these forces. Get our short slideshare and find out if you’re on the right finance package today.

1. FLEET OF FOOT
OR FLAT-FLEETED?
HOW TO DO A U-TURN
ON YOUR FLEET COSTS.

2. EVEN WHEN
YOU THINK IT’S
NOT COSTING
YOU ANYTHING.
HOW TO DO A U-TURN
ON YOUR FLEET COSTS.

3. HOW MUCH
DOES YOUR
FLEET COST?
YOU’D THINK THERE’D BE
A SIMPLE ANSWER TO THAT.

4. BUY
LEASE
It’s the monthly cost of finance if you’ve
gone down the contract-hire route.
Alternatively, it’s the big number you shelled
out to buy your vehicles outright, if you’re
an outright purchase man. Or woman.

5. THAT’S IT.
RIGHT?
SO, IT’S EITHER THE BIG NUMBER THAT CAME OUT OF
YOUR DEPARTMENTAL BUDGET ONCE UPON A TIME, OR
IT’S A MONTHLY FIGURE YOU PAY TO LEASE YOUR FLEET.

7. THERE’S 7 (COUNT ‘EM)
OTHER COSTS ON TOP
OF FINANCING THAT
YOU NEED TO ADD,
SUBTRACT, BALANCE,
BENCHMARK, WEIGH,
WRITE OFF, DEDUCT.

8. THESE COSTS ARE:
DEPRECIATION SERVICE MAINTENANCE
& REPAIR (SMR)
INSURANCE EMPLOYEE BENEFITS
FUEL
VAT
MILEAGE

9. BUY OR LEASE?
It’s a big decision.
THE BIGGEST NUMBER IN THE MIX IS ALWAYS
GOING TO BE THE COST OF FINANCE.
BUY
LEASE

10. If you’ve got the money in the bank,
paying upfront can seem appealing.
After all, you’ll get some of that money
back in a few years when you trade in
your fleet for newer models.
Hmmm…

11. Fingers crossed the resale
market picks up… how are those
residual values looking?
Happy to do all the purchase
and resale negotiations and
contracts yourself?
BEST HOPE YOUR
GUYS DON’T DRIVE
THEM INTO THE
GROUND THEN…
SCRAPYARD

12. even if you own your LCVs, workhorses,
executive cars and pool vehicles,
you don’t stop paying for them.
SEE, THE
TROUBLE IS,

13. You’ve got costs like insurance and
fuel. And then there’s the complicated
trade-off between:
• the budget allowance you give
your employees
• the amount of National Insurance
you have to pay
• and the salary or other benefits
that you need to tweak to try
to make it all cost-neutral
• the figure that you can deduct
from your VAT bill
FuelFuel

14. CONFUSING?
YOU BET.

15. SOD IT.
Just get them to use their own cars.

16. You might get some ‘pushback’
on the ‘wisdom’ of that.
Hmmm.

17. Even if your management team aren’t
wincing at the selection of boy racers
and bangers in the staff car park, your
compliance guys will be mightily displeased.
Because as long as your employees
are using cars that you’re funding for
work purposes, that means that you –
the employer – are responsible.

18. FOR
THEIR
SAFETY.
FOR ANY DAMAGE THEY CAUSE.
FOR PROVIDING DUTY OF CARE.
FOR CARRYING OUT YOUR
SERVICE DELIVERY OBLIGATIONS
FOR YOUR REPUTATION.

19. SO EITHER YOU SPEND
YOUR DAYS CHECKING
ROAD TAX, OR YOU
EMPLOY SOMEONE TO
MANAGE YOUR FLEET
FOR YOU.

20. OR YOU OUTSOURCE
THE WHOLE SHOOTING
MATCH, AND MAKE SURE
THAT YOUR PARTNER’S
SLAs WILL CATCH ANY
TARDY SERVICING, OR
WORN TYRES.

21. ONE WAY
THAT’S
ONE WAY
TO DO IT.

22. “BUT I’M STILL INCLINED
TO BE A BUYER. AND WON’T
YOU STICK ME WITH SOME
ANNOYING BILL FOR ALL
SORTS OF SMALL-PRINT
STUFF IF I DECIDE TO LEASE,
INSTEAD OF BUY?”

23. NOT
NECESSARILY.
WE ARE ALL ABOUT BEST VALUE.
FAIR PRICING, SERVICE MAINT
REPAIR, FLEXIBLE MILEAGES
AND CONTRACTS (SO CLIENTS
CAN CHANGE HALFWAY THROUGH),
FAIR WEAR AND TEAR STANDARDS.

24. We show you every cost, every
calculation. You decide the ground rules:
• Guaranteed price matching?
• Residual values?
• The Finance Lease or Purchase Lease
option that’s right for you

25. NO PROBLEM.

26. REMEMBER
THOSE MULTIPLE
COSTS WE
MENTIONED?

27. Keeping Whole Life Cost as low as possible
means finding that sweet spot, where
you’re balancing the:
• Fleet profile you want
• With the lowest overall cost – whether
that’s lease or purchase
• With the level of expertise and outsourced
management that you need

28. WE BET YOU
COULD MAKE
SOME SAVINGS.

29. HAPPY AS A CLAM WITH HOW
YOU’RE FUNDING YOUR FLEET,
OR NOT CONSIDERING RENEWING
AT THE MOMENT?
We’ll still make sure that you’re getting
the best possible deal on your other costs.
• How you’re paying for fuel – card, cash,
allowance?
• Insurance – who’s the bad egg pushing
up your premiums?
• Cash takers – are they dragging you down?

30. GOT A SPARE
15 MINUTES?
Have a go with the super
tool that we’ve developed
with Deloitte.

31. Ta dah!You can plug in your
own figures, scenarios
and tweaks to work
out your exact costs.
Introducing the Automated Consulting Tool!

32. YOU MIGHT JUST SAVE
SOME SERIOUS CASH.
YOU
KNOW,

33. OR IF WE CAN’T
FIND ANY WAY TO
MAKE YOU SOME
SAVINGS…
…you’ll get to bask in the sunshine of
superiority because you’ll have confidence
you’ve already got the best possible fleet
at the absolute best price.

34. WE HOPE WE’VE SHOWN YOU THAT THERE’S
A CLEAR ANSWER TO THIS QUESTION.
IT’S JUST NOT THE SIMPLE ANSWER THAT SOME
LEASING COMPANIES WILL SWERVE AROUND.
HOW MUCH
DOES YOUR
FLEET COST?

35. TIME TO GET
A PROPER IDEA
OF THE COST
OF YOUR FLEET?
WE’VE WRITTEN A LOVELY
EBOOK ON ALL 7 OF THESE
COSTS AND VARIABLES, BY
THE WAY. CHECK IT OUT HERE »THE EIGHT LEVERS of fLEET oPTIMIzATIoN
1. dEPREcIATIoN
We all know that a car loses value as soon
as it leaves the showroom, even if you resell it
24 hours later. That’s depreciation for you. But
get your lease financing and fleet mix right,
and you can make some serious savings.
Money first. Do you want to own your fleet,
or look into leasing? Own it and the cost
goes straight onto your corporate balance
sheet as an expenditure. You can’t claim any
VAT back either.
ease your fleet, and you’ll only need to pay
nd there’s lots of ways
k
But hang on – your organisation might have
a 0% VAT recovery rate. In which case, you’ll
be keen to do the maths on your purchase
and payment options.
Then there’s the vehicles you choose. CO2
emission levels can make all the difference
here. The current threshold is 130g/km. At
this level or under, companies can subtract
the costs of lease rentals from their profits.
That’s down from 160g/km preApril 2013 –
so overnight, that’s an additional cost on any
vehicle over that level. Something to consider
when you come to renew your fleet.
VARIABLES WITHIN VARIABLES:
So, it’s all about the CO2 level?
Nope. You’ll also have to factor
in the monthly lease price,
employee’s car allowance,
employer’s National Insurance
contributions, SMR costs, and
the rest. But never fear, that
sweet spot is in there somewhere
– we’ll help you find it.
THE SEVEN LEVERS
OF OPTIMISATION
HOW TO DRIVE DOWN THE WHOLE LIFE COST
OF YOUR PUBLIC SECTOR FLEET

36. WHO YOU
GONNA
CALL?
TELEPHONE
OUR INDEPENDENT CONSULTING TEAM;
LEASEPLAN CONSULTANCY SERVICES
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