Pictured: Phil Roberts, managing director of Flexible Vehicle Contracts

Companies searching for cars for employees are being advised that apparently low headline lease rates may not tell the full story. What appears to be a cost-effective company car could actually cost hundreds of pounds per year more than an alternative vehicle that appears more expensive when just looking at the monthly lease cost, according to Staffordshire-based Flexible Vehicle Contracts.

The full effects of fuel efficiency, insurance maintenance costs, and tax implications, should always be taken into account, said managing director Phil Roberts.

"It's a real problem and hundreds of companies are being caught out because they are not considering the total cost of leasing a vehicle. My message to businesses is don't be guided too much by the monthly lease costs."

Flexible Vehicle Contracts now offers a service quoting the whole life costs of vehicles.

Phil said: "We recently guided one business through the process and were able to improve both the marque and specification on each vehicle by running the whole life cost quote. For example, just because a BMW may cost more than a Ford it doesn't necessarily mean the operating costs are more.

"Far too often clients and potential clients get wrapped up in the monthly headline lease rate cost of a vehicle. Clients' budgets tend to only involve a certain amount per month to cover the lease cost, and this is often their primary concern.

"Not enough attention is being paid to the whole life costs of vehicles including such costs as fuel mpg, insurance, maintenance and tax implications. We are advising both business and personal clients to order vehicles based on these whole life costs rather than the headline monthly rates. In many cases cars with a higher headline lease rate will work out cheaper over the term of the contract due to better fuel efficiency and lower tax rates."

He added: "We are determined to arm our clients will all the knowledge they need to make informed decisions on their vehicle choices. We want our clients to know from the outset their actual running costs so that they don't get a nasty shock months down the line."

Since its launch in 1996, Flexible Vehicles has delivered more than 20,000 vehicles to business and personal customers across the UK. It has the ability to supply vehicles for periods from three months to four years. Services include contract hire and leasing, personal lease, vehicle finance, vehicle rental, outright purchase and commercial vehicles. Its Flexible Fleet Management system also allows companies to focus on their core business and not become distracted by the everyday problems associated with operating company vehicles and the ever-increasing grey fleet vehicles.