Posted on 30 Nov 2020
2 min read
New algorithm helps fleets make a more precise comparison between Electric Vehicles, hybrids, petrols and diesels when building car choice lists
Ogilvie has extended its innovative Ogilvie True Cost (OTC) matrix, which has helped hundreds of fleets set their company car policies, to include electric vehicles.
OTC takes the whole life cost calculation to the next level by accurately representing actual costs associated with the operation of the vehicle and allows a far more precise comparison to be made between different models.
The new calculation for Electric Vehicles starts by calculating key information such as electric range, battery capacity and the cost of electricity – currently around 15p per kW/h in the UK.
It then includes the critical costs associated with NIC and then applies the relevant corporation tax savings to actual and direct fleet costs before adding back in any applicable lease rental restriction.
This builds up an extensive picture of each company vehicle enabling companies to make the best possible decision for their business.
Ogilvie can set up an entire car policy using OTC as well as providing a full, bespoke, online driver quotation system that allows drivers to select only those vehicles that fall within their OTC band. This is becoming the modus operandi for the majority of Ogilvie clients operating more than 50 vehicles.
“The company vehicle landscape is changing very quickly which has made it more difficult for fleets to compare models with different engines like for like,” explained Nick Hardy, Ogilvie’s sales and marketing director.
“Our True Cost matrix provides a new level of data for fleets that will enable them to make more informed decisions on car choice and make easier comparisons. This takes our True Cost matrix to another level,” he added.
This example shows the OTC breakdown for the petrol Kia Niro and the fully electric Kia e-Niro.
|Total Effective Rental
|plus Monthly Total Fuel Cost
|plus Monthly Employer’s NIC
|less 19.00% Corp. Tax Saving
|plus Lease Rental Disallowance
|equals Ogilvie True Cost