'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 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
- 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.
Supported by the Community Sector Investment Fund (external link - opens in a new window).