After having your van for a while, you may notice payments for your asset tend to pile up. Research shows that over 80% of consumers do not understand the whole life costs of their vehicles, meaning you may be paying more than you originally signed up for.
Majority of van owners may only look at how much the vehicle cost upfront or over monthly payments but it’s important to factor in costs such as servicing, fuel and depreciation. Businesses should consider the following when purchasing a new vehicle:
- Retained Value – This is what your vans estimated value at the end of your agreed term (prices subject to condition). This is important to look at as you could be losing money in the long run even if you bought a cheaper van, to begin with. For example: In the example, although the Sprinter costs around £500 more than the Movano, the depreciation is £1,150 less. Therefore, when it comes to selling your vehicle at the end of the cycle, your vehicle will retain a higher value.
- Depreciation – This is the difference between the vehicle’s value when you buy it (List Price) and the value when you come to sell it (Retained Value). The value of a new vehicle can fall at an alarming rate, although this varies across manufacturers and models. You can limit the level of depreciation by maintaining a vehicle effectively (see service, tyres and repairs) and to keep it in a good condition if you plan to sell it on again.
- Service, Tyres & Repairs – This is an essential factor to work out when calculating your whole life costs. Make sure to check if your dealership is offering any free work that your vehicle qualifies for. Rossetts Commercials makes sure your vehicle is maintained to the highest standard by offering these services:
–36-month unlimited mileage warranty
–Service Care Plans
–2-year unlimited mileage genuine parts
–MobiloVan (Our FREE 24/7 roadside assistance service)
Making sure your van is serviced and maintained well will mean your vehicle will hold more value at the end of the contract.
- Fuel Costs – Fuel consumption has a big impact on your whole life cost calculation. If you are considering a new fleet, pay close attention to fuel consumption as not only will this reduce your fuel costs, but it will also affect depreciation and final retained value. For example:
As you can see, the Sprinter and the Nissan are of similar list value, with the Nissan costing slightly more. However, with fuel costs being just over £1,000 less due to fuel consumption, the Sprinter actually retains a higher value due to depreciating £1,000 less than the Nissan.
With all of this taken into account, make sure you check that your fleet isn’t losing you money. You can check the whole life costs on the Rossetts Commercials website of Mercedes-Benz vans compared to many others.