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Total cost of ownership brings together the costs of acquiring, financing, using, and maintaining a vehicle over a defined period, taking into account the value it retains at the end.
Reviewed 05.10.2026 · Version 2 · Scope: General
A comparison should specify the period, distance, energy, insurance, maintenance, taxes, and financing method. It may use the purchase price minus resale value, or depreciation, without counting the same loss twice.
Hypothetical example: a five-year comparison includes loss of value, interest, and expected usage expenses for the same annual distance. Changing that distance may change the result.
It makes it possible to evaluate a purchase by its full economic impact rather than focusing only on the price or a monthly payment. The assumptions should accompany the result.
A small payment does not prove a low total cost. Nor do estimates guarantee future energy prices, breakdowns, or resale value.
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