Car Cost Index LeasePlan Corporation N.V. - Consultancy Services - - PowerPoint PPT Presentation

LeasePlan Corporation N.V. - Consultancy Services September 2019

Car Cost Index

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• LeasePlan’s Car Cost Index is a comprehensive analysis
• f the costs of owning and operating a small to medium-size car in 18

European countries.

• It factors in all the various costs that must be payed for corporate

leasing in each country, including fuel, depreciation, taxes, insurance and maintenance.

• All costs are averaged over the first three years of ownership and

assume 20,000 km of driving a year.

• The data is based on corporate lease contracts and not on private

lease contracts. Furthermore, employee costs (like benefit-in-kind tax) are not included.

• Keep in mind that electric vehicles and diesel/petrol vehicles have

different trimlines and configurations which makes it impossible to conduct a like for like comparison. Therefore, the results of this study should not be interpreted as such.

The following information in this report is subject to certain conditions and disclaimers (see page 11), continuing to read this report indicates your acceptance of these conditions and disclaimers.

The Car Cost Index

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Key findings

The average monthly cost of driving a car varies hugely across Europe, from €440 a month in Greece to €830 a month in Norway. Relative to GDP, drivers in Italy and the Netherlands have the highest total cost of ownership, while drivers in Greece and the UK have the lowest total cost of

• wnership.

The Netherlands is the most expensive place to drive diesel cars and Norway for petrol cars. Consequently, electric cars are cheaper than diesel in the Netherlands and cheaper than petrol in Norway. Greece is the cheapest place to drive a diesel or petrol car. Electric cars are cost competitive in northern European countries such as the Norway and the Netherlands. Compared with our 2018 results, we see a sharp decline in the price differences between electric cars and petrol/diesel cars for the other European markets

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Driving a car in 2019 is most expensive in Norway, and cheapest in Greece

Average

€617

€ 830 € 825 € 764 € 715 € 667 € 643 € 639 € 626 € 618 € 611 € 605 € 602 € 563 € 521 € 507 € 496 € 451 € 440 France Czech Republic Norway Italy Netherlands Denmark Switzerland Sweden Belgium Spain Germany Portugal Greece United Kingdom Austria Poland Slovakia Romania

Average monthly TCO of all fuel types1

• In

Northern European countries like Norway, the Netherlands, and Denmark, driving a vehicle is relatively expensive

• In Eastern European countries like

Romania, Slovakia, and Czech Republic, driving a vehicle is relatively cheap

• The

average cost across the European markets has remained largely unchanged compared with

• ur 2018 results

1) Weighted for % of fuel type sold over Q1 2019

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Wealthier countries tend to have higher costs

NL IT DK BE ES NO CH SE PL DE FR CZ AT RO SK UK GR

€ 400 € 450 € 500 € 550 € 600 € 650 € 700 € 750 € 800 € 850 € 900 € 5,000 € 25,000 € 45,000 € 65,000 € 85,000 Average TCO per country versus GDP per capita

• Relative

affordability

• f

cars can be better understood when comparing the average monthly TCO to GDP per capita per country

• In the Netherlands & Italy the affordability

is relatively low with the average TCO being relatively high compared to the GDP

• For Greece and the UK, the average

TCO is relatively low compared to GDP indicating that driving a vehicle in these countries is relatively cheap GDP per capita Average monthly TCO of all fuel types1

1) Weighted for % of fuel type sold over Q1 2019

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In Norway and the Netherlands electric is more affordable than petrol or diesel

Average monthly total cost of ownership in top eight countries 100% = average within each country in Q1 2019* €833 €872 €676 €900 €974 €846 €804 €806 €821 €937 €567 €762 €683 €598 €576 €643 €851 €783 €596 €760 €794 €644 €587 €520

France Sweden Denmark Germany Norway United Kingdom Netherlands Italy Petrol Electric Diesel

*the cost levels are determined by comparing the same basket of vehicles per fuel type across countries. Please be aware that a like for like comparison is not possible between EV and Diesel/Petrol since range, horsepower, and comfort levels are different for EVs than for diesel/petrol vehicles.

Besides Norway, electric vehicles are now also nearing parity in terms

• f

cost in the Netherlands compared to petrol and diesel

• vehicles. The main contributors to this trend

are:

• The increased fuel cost of diesel and petrol
• The high registration and road taxation for

diesel specifically.

• The subsidies and tax breaks in place for

electric vehicles Even in countries where electric is more expensive than in petrol or diesel like Sweden, we can see demand for electric vehicles increasing because of favorable Benefit-in-kind taxation for electric vehicles.

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Average monthly total cost of ownership

The TCO breakdown of the three fuel types across all countries compared

52% 39% 32% 17% 20% 20% 7% 15% 21% 12% 13% 13% 6% 8% 9% 6% 5% 5% Electric Diesel Petrol

Depreciation Average of Maintenance, repair, road assistance & tires Average of Insurance & Accident Management Average of Road tax + VAT Average of Fuel Average of Interest

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Average monthly total cost of ownership

Electric

€995 €991 €974 €959 €900 €872 €858 €854 €847 €846 €834 €833 €833 €825 €806 €804 €676 €656 €- €100 €200 €300 €400 €500 €600 €700 €800 €900 €1,000

totals Interest RMT Insurance Fuel Road tax + VAT Depreciation

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Average monthly total cost of ownership

Diesel

€937 €821 €762 €691 €683 €643 €632 €598 €595 €591 €576 €567 €562 €549 €515 €486 €410 € 407 €- €100 €200 €300 €400 €500 €600 €700 €800 €900 €1,000

Totals Interest RMT Insurance Fuel Road tax + VAT Depreciation

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Average monthly total cost of ownership

Petrol

€851 €794 €783 €760 €644 €632 €613 €596 €587 €567 €538 €527 €520 €477 €461 €449 €446 €445 €- €100 €200 €300 €400 €500 €600 €700 €800 €900 €1,000

Totals Interest RMT Insurance Fuel Road tax + VAT Depreciation

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This material has been approved solely by, and is the responsibility of LeasePlan Corporation N.V. (“LPC”) on the basis of the sources as listed herein and information provided by LPC. LPC makes no representation or warranty (express or implied) of any nature, nor does it accept any responsibility or liability of any kind, with respect to the accuracy or completeness of any of the information or opinions in this material. The information contained in this document is derived from sources that have not been independently verified. LPC gives no undertaking and is under no obligation to provide the recipient with access to any additional information or to update this document or to correct any inaccuracies in it which may become apparent, and it reserves the right, without giving reasons, at any time and in any respect to amend or terminate the information described herein. Except in the case of fraudulent misrepresentation, neither LPC nor any of its affiliates, advisers or representatives shall have any liability for any direct, indirect, consequential or other losses or damages including loss of profits incurred by you or any third party that may arise from any reliance on (1) this document or for the reliability, accuracy, completeness or timeliness thereof or (2) for any other written or oral information made available by LPC in connection herewith or (3) any data which any such information generates.

Disclaimer

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