![]() Whole Life Cost policies give your organisation three “wins”: ![]() It takes into account future changes such as CO2 -based writing down allowances that will undoubtedly have a significant effect on the feasibility of many currently popular models. A Whole Life Cost car fleet policy shapes your fleet around the entire range of known fixed and variable costs. The alternative – using Whole Life Costs – is the only tried and tested method when it comes to maximising financial, environmental and tax efficiency. ![]() However, commonly used criteria such as purchase price or front-end lease rental costs will not help you define and run a low-cost, low-CO2, low-tax fleet. And for businesses, there are stronger than ever incentives to reduce CO2 emissions of their car fleet – not only from an environmental attitude – but also as a way to minimise the impact of volatile operating costs and rising fuel taxes.Ĭhoosing the right vehicles is therefore vital every fleet decision you make “locks in” CO2 emissions and running costs such as fuel and tax bills for the lifetime of the vehicle on your fleet – and in the case of some tax charges, long afterwards. The “credit crunch” has forced increased pressure on businesses to run greener fleets and save money on their car fleet operations. Why Whole Life Cost decisions are so important The answers can be found in Whole Life Cost calculations, as they provide an irrefutable means for selecting the right vehicles at the lowest total cost to the business. The Rate-My-Lease and Car-Lease-Calculator tools will calculate the LVR for you.Removing uncertainty from vehicle policy decisionsĬan you run a greener, more environmentally-friendly company car fleet and save your business money and fuel at the same time? How do you really know which cars are best for your fleet and your bottom line? Below, is a formula that you can paste into your spreadsheet for helping you determine your own Lease Value Ratio. The LVR should be used only as a rule of thumb to give you a quick snapshot of whether or not you’re getting a reasonable good car lease payment or not. (Monthly Payment x Lease Term) + Down Payment ![]() There may be certain models of cars that simply don’t look like a good lease on paper, but when you compare them to other cars in their class, perhaps they fair very well.ĭown Payment Doesn’t Include First Month’s Payment Each of us lease cars for slightly different personal reasons. Remember, the lease value ratio is only a number. So, how do you know by the number a good lease from a bad one? Based on the monthly car lease figures and data we’ve accumulated over the past two years, here is a guide to help you quickly decide. I’ve seen some really amazing car leases where the lease value ratios below 1.00% and some really lousy car leases where the Lease Value Ration tops 1.50%. The resulting numerical percentage is usually between 1 and 1.5 percent however there are exceptions on both sides of the rule. ![]() The lower the LVR, the better the car lease deal. The LVR is displayed as a single number percentage, or ratio, which quickly tells you how much car you are getting for your average payment. We wanted to make it easy to evaluate car leases. The Lease Value Ratio (LVR) is the heart, soul, passion and entire purpose of. ![]()
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