What is in the TCO?
The TCO brings together all the costs a vehicle incurs over its term. Only when you add them up can you compare vehicles, drivetrains and providers fairly.
The cost items
- Lease or depreciation and interest.
- Fuel or electricity.
- Maintenance, repair and tyres.
- Insurance and excess on damage.
- Taxable benefit and other tax effects.
- Residual value at the end of the term.
- Management and administration costs.
Why TCO is the right benchmark
A low lease rate says little if the car uses a lot of fuel or drops sharply in value. Conversely, a more expensive-looking car can be cheaper over the term. Those who steer on TCO instead of the list price or monthly rate demonstrably make better decisions.
The cheapest car on paper is rarely the cheapest car over the term.
TCO and sustainability
In the choice between electric, hybrid and combustion, the TCO is the fair reference point. Electric often wins on energy and maintenance, but residual value and tax treatment weigh heavily.
Make a first estimate
The calculator below gives a first indication of the savings room based on your fleet size and procurement situation. A full TCO calculation per vehicle category is done in the QuickScan or a targeted benchmark, using your own figures as the basis.
