Motiva Group is running a series of pilot projects with its existing employer clients to encourage organisations to look at the whole-life costs of their fleets rather than at monthly bills.
The fleet management firm has invested in accountancy firm Deloitte’s fleet and car tax analysis system, which allows almost every financial variable to be taken into account, including rental costs, all known and future tax legislative changes, inflation, insurance, depreciation, and the weighted average cost of capital rates.
Motiva Group is using the system as a free consultancy and internal audit tool. Pilot projects conducted with employers have highlighted potential savings for both the employer and employee running to tens of thousands of pounds.
Variables taken into account include corporation tax, VAT recovery rate, tax payment schedules, scheduled tax changes, year-end dates, depreciation, maintenance costs, CO2 emissions, insurance and fuel costs.
The system also produces reports that show the impact of car choice on employees, taking into account factors such as national insurance, benefit-in-kind tax, income tax, and personal and private fuel allowances.
Peter Davenport (pictured), chief executive at Motiva Group, said: “It’s amazing how many employers don’t even consider something as vital as fuel consumption when they are making decisions around their fleet policies.
“In fact the actual cost variables for both employer and employee are much more involved than most people realise.
“The rules around corporation tax, changing emissions regulations, the need to be seen to be green and the desire to make staff feel valued by offering a choice of [cars] all lead to a complex decision-making process.”
Martin Franks, business development manager at Motiva Group, added: “Within seconds, a fleet manager can see the real effect of changing the length of a contract, reducing fuel costs by 1%, changing [car] type, changing driver behaviour – in fact pretty much any variable you can think of.
“Not only that, it gives fleet managers the financial information they need to influence at board level.”