Total cost of ownership
When buying a car, many people focus on the upfront purchase price and EVs can be more expensive to buy compared to an internal combustion engine vehicle equivalent. If you look at the whole of life costs or total cost of ownership (TCO) of a vehicle, EVs can be a more cost effective option, given the greater cost running savings.
Total cost of ownership calculator
Determining the TCO for a particular vehicle involves understanding the cash flow impact of ownership of a vehicle over a defined timeframe. There are several inputs into a TCO calculation as outlined in the following table.
| Input | Description |
|---|---|
| Purchase price | The ultimate cash price after all dealer rebates and dealer delivery charges |
| Duties and taxes | Stamp duty, Luxury car tax, registration charges, CTP insurance |
| Subsidies | Any government subsidies provided |
| Running costs | Maintenance costs, Third Party insurance, fuel |
| Pre-sale make-good costs | Costs of vehicle improvements prior to resale |
| Residual value | The depreciated price for which a vehicle is sold at the end of ownership period |
| Finance costs | Any operating or finance lease |
| Holding period | The time between the purchase and sale of a vehicle |
| Accident management fee | Cost of roadside assistance and management of repairs process |