As prices soar in many industries, inflation spares corporate fleets. Better, the cost of a company vehicle returns to the level of 2012. After three years of increase between 2017 and 2019, the trend was reversed last year. This good news is carried by the Arval Mobility Observatory, BNP Paribas' think tank which measures the evolution of costs in the fleets each year. To assess automotive budgets, its experts have developed the concept of TCO (Total Cost of Ownership), which takes into account all the expenses related to the operation of a vehicle to understand its total weight and be able to compare it with other models on an equivalent basis. Ten years ago, the Arval Mobility Observatory seized on this concept to create the TCO Scope,an annual barometer dedicated to the study of the evolution of detention costs.
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Fleet report: the big changes
In 2020, the average cost per kilometer (PRK) stood at 0.372 euros including tax.
This indicator was calculated from the weighted average total cost of a sample of 267,656 cars with an annual mileage of 25,000 km, i.e. long-term rental contracts of 48 months and 100,000 km.
This PRK is down 5.1% compared to 2019 but has not yet returned to its lowest level of 2016.
“The cost of fuels has fallen significantly,
says Arval Mobility Observatory,
since the simulations were carried out on the basis of the average price per liter in 2020, i.e. around 1.34 euros including tax per liter of petrol (14 cents less compared to 2019), 1.26 euros per liter of diesel (18 cents less compared to 2019) and, for electric vehicles, an amount of 2 euros per 100 km (identical to 2019). ”
The current surge in oil prices, however, suggests an increase in the PRK for the year 2021. Another explanation, the increasingly marked presence of electric vehicles in the fleets of companies has a downward influence on taxation and on the maintenance.
Depreciation
In 2020, the weighted average total cost reached 37,520 euros, against 39,301 euros in 2019. Vehicle depreciation, financial costs, maintenance, tires, insurance, energy, tax and social charges, all items are falling. On the other hand, the respective weight of these different positions does not change. The main component of the TCO, depreciation expresses the difference between the purchase price of the vehicle and its foreseeable resale value at the end of the 48 months of ownership, a concept expressed under the name of residual value by long-term rental companies. In 2020, the amount of the depreciation was fixed at 15,041 euros, a decrease of 4.51%, against + 1.96% in 2019 and + 7% in 2018.
Second expense item for fleets, tax and social charges account for 23.20% of TCO. This budget includes TVS, non-deductible depreciation and social charges on benefits in kind. "
The State and social organizations represent a significant weight in the cost of using a fleet of private vehicles"
, estimates the think-tank. This part is all the more important since the non-deductible VAT on the purchases of goods and services is not taken into account whereas it represents an additional cost of 20% for this item. However, this budget is also down (- 1.98% to 8,719 euros). With a wider focal length, the situation seems less favorable, since this position increased by 11.62% between 2012 and 2020.
With 7,207 euros and 19.22% of the TCO, maintenance, including tires and insurance, forms the third largest budget.
Here again, this item fell and lost 2.1%.
With the exception of 2016, 2020 is the year in which this position will have been the lowest.
Energy comes in fourth place with 13.63% of the cost of using a vehicle.
In value, it represents 5,113 euros, against 5,918 euros in 2019, a decrease of 13.6%.
This trend is explained by lower prices at the pump over the period considered.
Notable fact: between 2012 and 2020, the weight of energy in the total PRK fell by 5.37%.
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The TCO Scope also analyzes the evolution of costs according to the segments of the automotive market. With the exception of the upper segment (type Audi Q5), all PRKs are down. Compared to 2019, the Eco segment (Renault Twingo) shows the largest decrease (- 7.55%, to 0.245 euro incl.tax / km) followed by the lower segment (Renault Clio) (- 4.76% to 0.280 euro incl. km) and the upper middle segment (VW Tiguan) (- 2.61% to 0.448 euro incl. tax / km). The PRO of the lower middle segment (Peugeot 308) does not budge in 2020, at 0.417 euros including tax / km, while that of the upper segment appreciates by 3.8%, at 0.634 euros including taxes / km.
According to the Arval Mobility Observatory, this general decrease is explained by the decline in gasoline engines, which emit more CO2 and consume more fuel, in favor of electrified models with more favorable taxation and for some of them more sober. Between 2012 and 2020, the luxury segment (BMW X5) is the only one to see its TCO drop (- 6.72%). Over the same period, the upper (+ 18.1%) and the lower middle (+ 11.2%) progress by a double-digit percentage.
Offering a complete panorama, the TCO of vehicles must not obscure the other operating costs of a fleet: administrative, management and organizational tasks.
According to a study by SesamLLD, the union of long-term rental companies, 58 hours are needed per year and per vehicle to carry out these tasks.
Above all, driver behavior is essential to contain costs.
Bad practices can increase TCO by 40%.