'Whole-of-life' and operating costs
Estimating and comparing ‘whole-of-life’ costs for vehicles enables fleet managers to gain a more accurate picture of vehicle costs over time and therefore to make more strategic purchasing decisions.
'Whole-of-life' cost calculations include the following elements:
- purchase price (dealer delivery charge, compulsory third party insurance, registration, motor vehicle duty, number plate fees, optional extras and adjustment for trade-in vehicle)
- depreciation (purchase price minus residual value)
- recurring fixed costs (registration, insurance, roadside assistance and finance costs)
- operating costs (fuel, tyres and maintenance).
Residual value is the amount a vehicle is sold for and depreciation is the difference between the vehicle's original value and its sale price.
Access to current vehicle residual estimates is available for purchase from:
Sample 'whole-of-life' cost calculations
The following calculator from the NRMA provides a demonstration of how ‘whole-of-life’ costs are calculated. The full version of the calculator is available for purchase.
'Whole-of-life' cost tool
This tool can be used by community service organisations to calculate the 'whole-of-life' cost of vehicles owned by their organisation:
- Vehicle whole of life cost tool for owned vehicles [Excel, 42.0 KB - opens in a new window]This tool does not perform any automatic calculations but includes links to information on how to calculate some costs.
Vehicle private usage operating costs for a range of vehicles are available from:
Supported by the Community Sector Investment Fund (external link - opens in a new window).