APPARENTLY business car managers are not all doing their sums right when it comes to the company cars their firms run.

Research from the car leasing company GE Capital says that businesses may be failing to account for the total cost of running their company car fleet, leading to unexpected financial costs at the end of the year.

In its latest Company Car Trends Survey – a survey of its large fleet customers, rather than small businesses by the way – GE Capital found that just under half of all businesses (44%) now consider the maximum monthly rental as the key measure for calculating the cost of company cars. Furthermore, in an environment where companies are concentrating on cost savings, a fifth of companies (21%) focus on vehicle cost per mile.

But, neither of these measures can provide a company with the total cost of fleet ownership reckons Gary Killeen, UK fleet commercial leader at GE Capital: “Given the current economic climate, it is surprising that businesses are not more focused on making savings to the overall cost of their company cars. Without taking into account all the extra costs in operating a fleet, such as vehicle insurance, national insurance costs and the impact of corporation tax, managers can find they are in for a nasty surprise at the end of the financial year.”

Mr Killeen also noted that the level of carbon dioxide emitted from vehicles, stated by 59% of managers, had replaced fitness for purpose, stated by 52% of managers, as the most important criterion for fleet decision makers when considering a choice of car.

Other factors cited by employers, continued Mr Killeen, when choosing their fleet included safety features (mentioned by almost a quarter of companies), maximum engine capacity (16%), and brand image (12%).

Mr Killeen concluded: “It is important that businesses have the right balance of all these factors when working out their best choice of fleet. Missing out on the right calculation could prove inefficient and extremely costly in the long run.”