Male hands typing on a laptop

Understanding Vehicle Operating Costs

2 min to readFleet Management
There are many factors that affect the total cost of use (TCO) of a car, that interact with each other. Learn more from LeasePlan!
Share

The components that make up the total cost of ownership (TCO) of a vehicle ultimately affect each other. Reduce your TCO by selecting vehicles with the highest resale value, and the lowest fuel and maintenance costs. Then, look at the other areas for possible cost-saving opportunities.

Maintenance & Repair costs only make up 7-9% of TCO but can have a measurable impact. Create a preventive maintenance schedule to avoid expensive repairs later!

Depreciation accounts for 28-38% of the total cost of a vehicle. To reduce TCO, evaluate your fleet to make sure you are using the right vehicle for the specific job application and replacing vehicles at the optimal time.

Fuel can be 32-44% of a vehicle’s total cost. Reduce your fuel costs by utilising a smaller engine when possible and cost-control measures that a managed program can provide.

Fees, Taxes & Interest combined make up 4-6% of your TCO. Because these are smaller portions, you won’t get the “biggest bang for your buck” if you only focus on these areas.

Accident Expenses can be 6-8% of a vehicle’s operating cost. Decrease these costs with regular maintenance of the vehicle and the implementation of a driver training program.

Insurance accounts for 8-10% of your total cost. It is an essential element of TCO.

2016LPGRTCOInfographic
Published at March 1, 2017
Was this article helpful?

March 1, 2017
Share

Related articles

Leasing
Light Commercial Vehicles: Why you should choose leasing? 18 October 2019 - 2 min to read
Fleet Management
5 reasons to consider leasing a car for your small business06 June 2019 - 2 min to read
Fleet Management
LeasePlan Benchmarks the Global Fleet Industry01 April 2017 - 1 min to read