CONTINUING EDUCATION COURSE
FLEET MANAGER:
DEVELOPMENT OF MANAGERIAL SKILLS
HOW MUCH DOES IT COST THE
COMPANY CAR?
Gian Primo Quagliano
Communication Lecturer at the University of Bologna
Lecturer in Economics at the Journalism School (University of Bologna)
President of Econometrica and Centro Studi Promotor
TCO
=
TOTAL COST OF OWNERSHIP
TCO CONFIGURATIONS (I)
-CAR OWNERSHIP
-CAR RENTAL
N NOLEGGIO
TCO CONFIGURATIONS (II)
-ITEMISED ESTIMATE
TOTAL ANNUAL COST OF A VEHICLE
where:
V AC
y,n
= FC + VC*n
V AC
y,n
= it’s the annual cost (AC) for the vehicle V
that is owned for “y” years and it travels “n”
kilometers per year.
FC = annual fixed charge
VC= variable costs per kilometer.
y = no. years of ownership
ANNUAL FIXED CHARGE
FC = D+I+B+Cli+Fti+G+T+Fi+RC+AE
where:
D = annual depreciation
I = interest on capital employed
B = property tax
Cli = civil liability insurance
Fti = fire & theft car insurance
G = garage and parking lot
T = tolls
Fi = fines
RC = replacement cars
VARIABLE COSTS PER KILOMETRE
where:
VC = C+M+L+T
C = fuel cost per kilometer
M = maintenance cost per kilometer
L = lubricants cost per kilometer
AVERAGE AGE OF A COMPANY CAR
What was the average age of the disused cars in your company
fleet’s car park?
Disused cars in
Average age
2010
42 months
2011
44 months
2012
45 months
2013 – January
43 months
AVERAGE TOTAL MILEAGE OF A
COMPANY CAR
How much kilometers, on average,
had your disused cars traveled?
Cars disused in
Km traveled
2011
125.973 km
2012
123.023 km
2013 – January
126.845 km
HOW TO ACQUIRE A CAR PARK (I)
What are the percentages of ownership, long-term rental, financial leasing and
financial leasing + services?
DISTRIBUTION OF CARS BY ACQUISITION TYPE
Financial leasing plus services 2% Ownership 13% Financial leasing 2% Long-term car rental 83%
HOW TO ACQUIRE A CAR PARK (II)
If your company uses the long term rental, with how many
companies is co-operating at this time?
Feb-13
Jul-12
Jul-11
Number of long-term rental companies
2,8
2,2
2,4
How many brands and models are there in your company fleet?
Feb-13
Jul-12
Jul-11
Number of brands
8,4
5,8
7,3
Number of models
24,3
15,9
19,1
BENEFIT CARS (I)
What is the percentage of cars for personal use (benefit) for executives and
managers?
PERCENTAGE CARS IN BENEFIT
none 4% up to 25%: 20% over 50%: 58% from 26% to 50%: 18%
CAR PARK GRANTED IN BENEFIT: AVERAGE 59,5%
BENEFIT CARS (II)
How users choose car benefits?
Feb-13
Jul-12
Jul-11
Within a list
40%
37%
56%
The model is decided by the company
37%
39%
25%
Freely, within a maximum spending limit
23%
24%
19%
Power source
Average %
Vehicle fleet
Gasolio
89,08
Benzina
6,67
Metano
2,45
Gpl
1,05
Ibride
0,62
Elettriche
0,13
Etanolo
-
TOTAL
100,00
AVERAGE COMPOSITION OF THE VEHICLE
FLEET BY POWER SOURCE
Electric 0,13% Hybri d 0,62% GPL 1,05% Methane 2,45% Petrol 6,67% Diesel 89,08%
Source: Centro Studi Auto Aziendale (excerpt from a quarterly business survey on fleet managers)
Diesel
Petrol
Methane
GPL
Hybrid
Electric
Ethanol
HOW MANY KM CAN YOU TRAVEL WITH AN
AVERAGE CAR (1.500-2000 CC) AND €10 OF FUEL?
Fuel
No. of km
performance
with €10
petrol
56
diesel
67
gpl
88
methane
151
Source: EconometricaENVIRONMENTAL IMPACT OF CAR FLEET
What actions your company intends to implement in 2012, to prevent
pollution and reduce harmful emissions of your car fleet?
Pay attention to CO2 emissions in
the choice of new cars:
55%
Acquire smaller cars:
22%
Acquire electric cars:
19%
Acquire natural gas cars:
15%
Acquire GPL cars:
15%
0% 10% 20% 30% 40% 50% 60%
FIRE & THEFT CAR INSURANCE
Ownership or
financial leasing
Long-term rental
Uninsured companies
14%
9%
Insured companies
nowadays, but with
propensity not to
insure in the future
a non assicurare in
futuro
10%
11%
INTERVENTIONS ON CAR FLEET (I)
Measures that the company will take over the next twelve months, if the
market situation gets worse.
(percentages, more than one answer)MEASURES
April
2012
April
2011
Changing the type of cars
30
54
Decrease the number of cars in the fleet
13
24
Decrease benefits for employers/employees
dirigenti/dipendenti
8
12
Changing the car supplier
6
14
Reduction/elimination of the owned cars
5
6
Increase the rental share
3
0
Relying on an outside management company
1
0
Increase the leased cars
-
-
Other
4
11
No measure
56
37
INTERVENTIONS ON CAR FLEET (II)
Obstacles in the acquisition of new cars
(in order of importance)
Insurance cost
96% (*)
Fuel cost
94%
General economic situation
92%
Credit availability
88%
Car price/rental fee/leasing fee
84%
Efficacy of promotional policies of supplier
76%
Company’s economic situation
74%
INTERVENTINOS ON CAR FLEET (III)
% of companies that are studying measures listed below
MEASURE
%
MEASURE
%
Extension of existing long-term rental conctracts
37% Decrease the number of rental cars 11%
Raise the average time spent of the cars in the fleet
32% Decrease the concession of cars “in benefit” 10%
Stipulation of new long-term rental contracts, with longer duration
31% Decrease the number of car leased 9%
Utilization of the employee’s car for corporate travel, with mileage reimbursement
29% Deferment of decisions on car sales 8%
Restriction on car choice by the driver 26% Expansion on car choice by the driver 8%
Increase the number of rental cars 21% Stipulation of new long-term rental contracts, with shorter duration
7%
Increase the number of purchased cars 15% Extend the concession of cars “in benefit” to new categories of empolyees
7%
Decrease the number of purchased cars 11% Increase the number of leased cars 5%
Decrease the number of owned cars 11% Decrease the average time spent of the cars in the fleet
4%
COMPANIES WHO ALSO USE THE
EMPLOYEES’ CARS
INTERVENTIONS ON CAR POLICY (I)
Do you think that your company car policy will change
over the next twelve months?
Survey
April 2012
Survey
April 2011
Will change
25%
23%
Remain the same
75%
77%
Total
100%
100%
INTERVENTIONS ON CAR POLICY (II)
If your company car policy will change, how it will change?
(spontaneous answers)
