Contract Hire and Leasing Award – Ogilvie Fleet
Ogilvie Fleet’s true cost matrix grabbed the judges’ attention in the Leasing and Contract Hire category of the 2021 Company Car Today Innovation Awards, with its focus on easing the comparison between the actual running costs of petrol, diesel and electric vehicles.
The Ogilvie True Cost matrix takes actual energy costs to help give what the company says is a fairer and correct view of the running costs.
“Our OTC includes the fuel cost, which is of course a huge factor in determining which vehicles to operate,” Ogilvie managing director Gordon Stephen (pictured) tells Company Car Today in the wake of the Innovation Awards victory. “It takes into account the true – and yet differing – elements of cost that should be considered when comparing cars next to each other, as well as creating fair and cost-effective band values.”
According to Ogilvie, fleets can struggle with placing electric vehicles in their company car bands thanks to the higher up-front cost, creating problems when company car drivers are keen to capitalise on the current Benefit-in-Kind advantages.
“It was important to take some of the myth away,” continues Stephen. “Where rental alone would likely not allow many EVs to be chosen, where the true cost of operation is taken into consideration – fuel being the critical element – we are getting EVs onto our clients’ fleets.”
Ogilvie’s boss says that EVs were not being fairly represented on policies thanks to the difficulty in understanding the fuelling cost, and the company uses a calculation based on the UK Power cost of energy figures, which are updated quarterly. The cost is then combined with vehicle range and efficiency to give a calculated fuel price over the contract.
Stephen also said that Ogilvie is looking to expand the reach of its matrix, examining how to incorporate elements of cost raised by customers, most prevalently the varying cost of electric vehicle charging. Also on the agenda is more accurately reflecting the real-world fuel use of plug-in hybrids, and adding electric vans into the mix once more data and supply of EV LCVs becomes available.
But Ogilvie’s electric vehicle attention reaches beyond its true cost matrix, because the company has also launched a green task force to ensure all its staff are up to date on all things EV.
“Internally, our teams have really bought into the EV revolution and the initiatives developed by the green fleet task force,” says Stephen. “We have invested significant time and resources in ensuring our staff can support our clients with their transition to electric.”
“Our client base has really engaged with us to understand how introducing electric vehicles can not only reduce costs and their carbon footprint, but also to help attract and retain staff following a period of economic uncertainty,” he continues. “We have also had a rise in the number of new customer enquiries, especially from referrals, as fleet managers want to take advantage of our EV tools and the knowledge of our team.”
The leasing company has also recently launched an EV database to help drivers and fleets understand the myriad options now on offer, while its own company fleet is moving to EVs, including the vast majority of external-facing customer management team. Other things in the pipeline include closer relationships with EV charge card companies to ease the process of public charging, while Ogilvie is also running regular seminars and blogs to help fleets garner the information they need to make the move, or make EVs work better for them.
All in all, it’s a package that was a clear Innovation Award-winning favourite.