How to index your car policy

Vehicle leasing prices have changed significantly. Many fleet managers wonder these days whether to review their car policy in order to align it with the current market, or perhaps wait a little longer until markets stabilize. Revising the car policy often feels inevitable. But, what is the actual cause of the fact that the current car policy budget doesn´t fit with the changed market? In many countries, multiple causes can be pointed out, such as higher investment value or inflation.

We may carefully presume that the figures will not go back to where they were, any time soon. What is the impact on your lease price? An what actions are expected from Fleet Managers?

Price indexation

To make the complexity of the current price developments more tangible, a lease price index has been developed called the “Car Policy Index”. It monitors the behavior of your Car Policy categories. And with categories we mean the job levels and the corresponding lease price that the employee is eligible to have. This so called Car Policy Index enables companies to adjust their Car Policy categories based on actual facts from the market.

All developments at a glance

The Car Policy Index is a dashboard with graphs which simply can be filtered by year or brand, giving insight in the development of the monthly lease rate since your car policy was last revised. Besides that, it also displays the development of list prices, interest rates, cost of maintenance and dealer discounts – all per car policy category.

The Car Policy Index was launched on 1 September 2022 and is initially applicable for Poland, Czech Republic, Slovakia, Hungary and Romania.

Additionally, Fleet Europe has hosted a live webinar about the Car Policy Index, which was moderated by Steven Schoefs, including a Q & A session with the audience. A recording of the webinar is available on YouTube:  LINK TO WEBINAR.

Full Electric Vehicles for Central European countries

Increasingly, local authorities and even national governments are banning the most polluting diesel and petrol cars. Some have even announced a ban on all cars with combustion engines by 2025 to 2030.

At the same time, electric vehicles are slowly hitting the mainstream. More and more carmakers are introducing affordable EVs with ranges of well over 300 kilometers. So, is the time now to electrify your fleet?

Optimal fleet electrification

Many international fleet managers ask themselves “To what extend can I optimally ‘electrify’ my fleet?” Electric cars are everywhere. Or, at least, you’d expect them to be everywhere, judging from how much people in the fleet and mobility industry are talking about them.

The answer to the question can be found in looking at the problem country by country. Realistically, each country has different circumstances, i.e. terrain, government incentives, taxes, public charging grid, maintenance grid, and many more. These have an effect not only on your TCO but it also effects the time drivers spend to get to the nearest garage, the time they wait at a charging station while their car is recharging, or even the time spend finding a charging station and planning their trips.

In reality

Only few fleets are walking the talk. European-wide EVs don’t even represent 6% of new vehicle fleet registrations but that is likely to change now new EU regulations have fixed the threshold in 2030 for manufacturers to allow selling fully electric vehicles from that point on. To know where to go is to know the full picture.

The facts

The E-mobility factsheet sums up the facts about;  West versus Central Europe, the numbers of charging stations, the number of PHEVs and EVs,  governmental regulations in Central Europe country-by-country and made a comparison with Western European countries. The E-mobility Factsheet shows you the latest data about electric vehicle adoption and charge point infrastructure.

Request the E-mobility Factsheet here

How to index your car policy

Vehicle leasing prices have changed significantly. Many fleet managers wonder these days whether to review their car policy in order to align it with the current market, or perhaps wait a little longer until markets stabilize. What is the actual cause of the fact that the current car policy budget doesn´t fit with the changed market? In many countries, multiple causes can be pointed out, such as higher investment value or inflation.

We may carefully presume that the figures will not go back to where they were, any time soon. What is the impact on your lease price?

Price indexation

To make the complexity of the current price developments more tangible, Business Lease has developed an Index which monitors the behavior of your Car Policy categories. With categories we mean the job levels and the corresponding lease price that the employee is eligible to have. The so called Car Policy Index enables Business Lease’ clients to adjust their Car Policy categories based on actual facts from the market.

All developments at a glance

The result is a dashboard with graphs which simply can be filtered by year or brand and giving insight in the development of the monthly lease rate. Besides that, it also displays the development of list prices, interest rates, cost of maintenance and dealer discounts – all per car policy category.

The Car Policy Index will be operational as of 1 September 2022 in all Business Lease offices (Poland, Czech Republic, Slovakia, Hungary and Romania).

Additionally, the Fleet Europe platform has hosted a live webinar on September 28 2022, which was moderated by Steven Schoefs, followed by a Q & A session with the audience. A recording of the webinar is available on YouTube here.

Contact us

Whether you’re thinking about revising your car policy or you need to budget your fleet costs for next year, engage with the Business Lease International team for an open talk, via e.korver@businesslease.com.