Optimization of Total Cost of Ownership (TCO)
Total Cost of Ownership may represent a significant percentage of company costs thus their eventual reduction may substantially influence an entire economy of the company. So an analyzing and optimization of these costs have recently been playing even more important role.
These costs consist not only of purchase value of vehicle and its operation costs, but very important role plays also residual value of the vehicle – in our case, an amount of money you get when reselling the vehicle. And it is the difference between the purchase price and the residual value (depreciation) that represents the biggest part in the Total Cost of Ownership. The rest of the TCO consists of fuel, interest, insurance, maintenance&repair and tax&fees (see the example of the TCO structure in model chart below: vehicle = lower mid class, diesel engine, 3 years operation, 20 000 km/year)
Given a significant importance of the vehicle depreciation within Total Cost of Ownership, it may happen that the vehicle purchased for a substantially lower price is much more expensive at the end than another one with higher purchase price. The reason is high operation costs compared to the relatively more expensive vehicle which has lower operation costs and, above all, its residual value doesn’t fall down so quickly. After few months of operation, the cheaper vehicle becomes more expensive from Total Cost of Ownership point of view.
Therefore, when choosing the suitable vehicle, it is appropriate to take all relevant costs, i.e. Total Cost of Ownership into consideration.
With our services we are going to support you to control costs and find a way of their optimization:
|
|
- one system fleet data recording, administration efficiency improvement - any data output available |
|
|
|
- outsourcing of fleet management operations - fleet management cunsultancy, tailor made selection procedures |
|
|
|
- LCV & microbus rental | |
|
|
- an effecient way of purchasing company or private cars |
Our partners
