The cost of use or TCO (Total Cost of Ownership) includes the total cost of the complete lifetime of a vehicle. It is often underestimated.
The costs to be taken into account to calculate its cost of use/TCO are:
- the price of the vehicle;
- the vehicle-related taxes, which often depend on the category and model of the vehicle as well as its emissions type;
- sometimes a tax on polluting particle emissions, depending on the type of vehicle;
- the cost of depreciation, which corresponds to the normal wear and tear of the vehicle;
- fuel consumption;
- maintenance;
- management and compliance costs (so that the vehicle remains compliant with current standards, which can change);
- insurance.
Some components in the TCO calculation can vary a lot depending on the context and have a significant impact. It is therefore important to pay particular attention to the following aspects:
- fuel, depending on whether the country is an oil producer – or not – or whether the area has easy access to good quality fuel or not.
- the availability of spare parts, which can sometimes pose great difficulties and immobilise equipment for long period of time.
