Total Cost Of Ownership (TCO)

Depreciation is often the largest single cost for new cars. A cheaper car to buy is not always cheaper to own. Fleet managers use it to compare vehicles over a fixed period. Electric cars often cost more to buy but less to run, so TCO is a useful way to compare them with combustion cars.

All expected costs over the ownership period are added and compared, often per year or per kilometre.

Estimates depend on assumptions about mileage and prices. Include tyres, parking and charging or fuel prices for a fair comparison.