Jaama, a company which combines fleet management and risk management services, believes that some fleet operators do not include all of the relevant data in their overall company fleets calculations meaning that the real whole life cost picture is not fully transparent. The company’s Key2 Vehicle Management software therefore has functionality that takes account of all transactions and identifies the optimum funding strategy for organisations on an individual basis.

Taking the examples of contract hire and vehicle purchase, Jaama points out that whole life cost calculations (from contract hire and leasing companies) are often based on a just an effective rental plus the cost of fuel. But fleets should also include, for example, the cost associated with employer National Insurance contributions and subtract a corporation tax saving before adding back in to the calculation any applicable lease rental disallowance. In the case of buying vehicles the cost of borrowing money should also be included in the calculations.