We’ve put together a glossary to help you understand some of the key terminologies associated with fleet vehicles.
Term Glossary
What are Whole Life Costs?
The Whole Life Cost is the total expense of owning a vehicle over its operational life. As well as the initial acquisition price, this includes MPG, C02 emissions, level of depreciation, maintenance and servicing costs as well as running costs – including fuel, mileage, taxation and insurance.
Whole-life Costing helps Fleet Managers make the best possible vehicle choices.
What is BIK?
If you drive a company car that is made available for private use, Benefit-in-Kind (BIK) is the company car tax you will be liable to pay.
The amount of BIK tax you’ll pay is based on official CO2 emissions, the car’s P11D value, fuel type and your personal tax rate.
WHAT IS P11D?
The P11D value comprises the list price of your car, including optional extras and delivery charges. It does not include non-taxable items such as the car’s first-year registration fee or annual VED car tax.
A P11D form is completed by employers each year to inform HMRC about the cash equivalent of all the benefits and expenses that you have received from your company in addition to salary during the tax year.
What is WLTP?
The Worldwide Harmonised Light Vehicles Test Procedure – or WLTP replaces the previous testing process, the New European Driving Cycle or NEDC. The WLTP testing method is designed to give a more realistic set of figures for emissions and fuel consumption than the NEDC – closer to what you could achieve in everyday driving.
All new cars registered must now have type-approved WLTP figures. From September 2019, WLTP regulations will also be applied to light commercial vehicles.
How will WLTP affect you and your Nissan fleet vehicles?
When you choose a Nissan company car, we want you to have all the facts at your disposal. This includes having accurate and clearly-expressed information about vehicle emissions and fuel consumption. WLTP makes this easier. Although under the new conditions, the figures will be higher than those quoted under the obsolete NEDC test process, Nissan vehicles remain the same – it’s just that the standards by which they are tested have been improved.
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