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.

Purchase priceThe ultimate cash price after all dealer rebates and dealer delivery charges
Duties and taxesStamp duty, Luxury car tax, registration charges, CTP insurance
SubsidiesAny government subsidies provided
Running costsMaintenance costs, Third Party insurance, fuel
Pre-sale make-good costsCosts of vehicle improvements prior to resale
Residual valueThe depreciated price for which a vehicle is sold at the end of ownership period
Finance costsAny operating or finance lease
Holding periodThe time between the purchase and sale of a vehicle
Accident management feeCost of roadside assistance and management of repairs process