Understanding Total Vehicle Ownership Cost

Fuel is only one part of ownership; combine maintenance, insurance, tyres, taxes, depreciation and finance costs.

A useful ownership-cost view includes recurring fuel or electricity, scheduled maintenance, unscheduled repairs, tyres, insurance, registration, taxes, parking, tolls and financing. Depreciation can be one of the largest costs even though it does not appear as a monthly bill.

Track categories consistently and divide suitable costs by distance to understand cost per kilometre. Avoid comparing vehicles using fuel cost alone when purchase price, depreciation and maintenance are materially different.