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'Whole-of-life' and operating costs

'Wole-of-life' 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 for used vehicles include the following elements:

  • purchase price (compulsory third party insurance, registration or transfer or registration, motor vehicle duty, number plate fees and adjustment for trade-in vehicle)
  • mechanical and roadworthiness inspection
  • 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

Whole-of-life cost tool