When purchasing a commercial vehicle or truck, many people focus solely on the purchase price. While that seems logical, there are many other costs involved in owning a vehicle. The Total Cost of Ownership (TCO) provides a complete overview of all the costs a vehicle incurs. This includes fuel consumption, maintenance, depreciation, insurance, and more. In this blog, we explain exactly what TCO is and why it’s so important when buying your next commercial vehicle. With this knowledge, you’ll be able to make the best possible choice – and save money in the long run.
When purchasing a vehicle, most people initially focus on the purchase price. That makes sense – it's the most visible figure and often the first factor you consider. However, over the long term, there are many other costs that come into play. Below are the key cost components included in the Total Cost of Ownership:
Purchase cost. The price of the vehicle or the lease amount.
Depreciation. The loss of value of the truck over time. This is often the largest cost factor in the TCO.
Fuel consumption. Diesel represents a major cost – especially for intensive use. The fuel efficiency of your vehicle significantly affects overall expenses.
Maintenance and repairs. Regular servicing, wear parts, and unexpected breakdowns. That’s why choosing a reliable brand and model is crucial.
Tyres. Tyres on a commercial truck wear out relatively quickly. The replacement frequency impacts your overall TCO.
Insurance. Premiums vary based on vehicle type and coverage level.
Taxes and tolls. These include road taxes, toll charges, emission zone fees, and country-specific charges like the German Maut.
Financing costs. If the vehicle is financed, interest charges also contribute to the TCO.
Downtime. This is especially relevant for trucks. Every day a truck is idle due to maintenance, damage or delays costs money – even if you don’t see it on the invoice.
Calculating the TCO of a used truck or van requires more attention than for a new vehicle. Factors like wear and tear, maintenance history, and residual value play a larger role. Still, you can easily get a realistic estimate using a structured method.
You can calculate TCO using the following formula:
TCO = Depreciation + Fuel (average consumption × fuel price × km) + Maintenance (€0.05 – €0.15 per km depending on age/mileage) + Insurance + Taxes + Other costs / usage (in km or months)
Example: A transport company buys a 4-year-old used truck for €45,000 with 400,000 km on the odometer. The company plans to use the truck for another 3 years, driving approximately 90,000 km per year. The estimated residual value after 3 years is €15,000. Insurance (WA + Casco) is estimated at €2,200/year. Road tax and tolls are about €2,500/year. Tyres and other costs add up to €1,800/year.
Total annual costs = €10,000 + €41,143 + €9,000 + €2,200 + €2,500 + €1,800TCO per year: €66,643TCO per km: €66,643 / 90,000 km = €0.74 per km
You can also use a TCO calculator if you'd prefer not to do the math manually. Most tools are focused on new vehicles, but you can enter your own values to estimate the TCO for used trucks.
Besides long-term cost forecasting, TCO is a powerful tool when comparing different vehicles. Especially when you’re hesitating between multiple options that all seem attractive on paper. Keep the following in mind to make the smartest choice:
Use the same calculation method for every vehicle type. Whether you're comparing a truck or a van, using the same formula allows for a fair cost-per-kilometre or cost-per-year comparison.
Include the complete cost picture. Factors can vary by vehicle type – think of city driving, diesel vs. electric, or lease vs. purchase.
Compare costs per km or per month. This gives you a clear, objective comparison between options.
Analyse costs across your entire fleet. TCO helps determine which vehicle fits which job, whether it's smarter to replace or keep an older model, and which ones deliver the highest return.
TCO helps you invest more strategically in your commercial vehicles. It reduces the risk of unexpected costs and gives you concrete insight into the efficiency of each model or brand. It also supports measurable, data-driven decisions when it comes to sustainability and fleet management.
At BAS World, we offer a wide selection of new and used commercial vehicles and trucks. With the tips above, you can make a long-term choice that suits your operations and budget.
Explore our current stock or get in touch with one of our advisors for transparent, expert advice tailored to your needs.
