TCO (Total Cost of Ownership)

Category: finance

A holistic financial calculation representing the total expense of operating a vehicle throughout its entire ownership period.

TCO includes the initial purchase price, financing interest, fuel or electricity, insurance premiums, scheduled maintenance, unexpected repairs, and the projected final resale value. TCO analysis is the standard metric used by corporate fleet managers to determine which brand badge offers the most value.

Common Examples

• Our TCO analysis revealed that while the luxury hybrid’s upfront price was higher, its total cost of ownership over 100k miles was significantly lower than the standard ICE vehicle.
• When presenting to the CFO, we utilize a TCO model to demonstrate the long-term savings of upgrading to the brand’s more reliable fleet lineup.