How to Calculate Total Cost of Ownership (TCO) for Trucks

Make Smarter Business Decisions with a Full Picture of Your Costs

When buying a used or new truck, the purchase price is only part of the story. To truly understand the investment, you must look beyond the initial cost. That’s where the Total Cost of Ownership (TCO) comes in. Calculating TCO helps you evaluate the long-term financial impact of your decision—before you commit.

What Is Total Cost of Ownership (TCO)?

TCO refers to all the costs associated with owning and operating a vehicle over its entire lifecycle. This includes not just the purchase price but also expenses like fuel, maintenance, insurance, depreciation, taxes, and resale value.

For businesses, especially those running fleets, understanding TCO ensures:

• Better budget planning

• Lower operating costs

• Higher return on investment (ROI)

1. Initial Purchase Price

This is the upfront cost to buy the truck. With used trucks, you might save significantly compared to new vehicles, but this must be balanced against condition, mileage, and age.

Tips:

• Compare similar models

• Check if the vehicle has been inspected and certified

• Buy from reliable exporters like EVERYCAR.jp

2. Fuel Costs

Fuel is a major contributor to ongoing costs. Fuel economy varies based on:

• Engine type (e.g., diesel vs. gasoline vs. hybrid)

• Load weight

• Driving conditions (urban vs. highway)

• Driving habits

Formula to estimate annual fuel cost:

Example:
If a truck runs 20,000 km/year at 6 km/L and diesel costs $1.20/L →
(20,000 / 6) × 1.2 = $4,000/year

3. Maintenance and Repairs

Routine services like oil changes, brakes, and tire replacements must be included. Trucks with strong reputations (like Japanese brands) often have lower maintenance costs.

Consider:

• Frequency of repairs

• Availability of spare parts

• Age and condition at purchase

• Past maintenance history

4. Insurance and Licensing

These costs vary by region, use type (commercial vs. private), and vehicle size. Consult with a local provider to get accurate quotes.

5. Taxes and Duties

Import taxes, VAT, registration fees, and other government charges add to the total cost—especially when purchasing across borders.

EVERY Co Ltd provides guidance on local import regulations to help you estimate these fees correctly.

6. Depreciation and Resale Value

Depreciation is how much value a truck loses over time. While new trucks depreciate quickly in the first few years, used trucks often maintain value longer, especially well-maintained Japanese trucks.

A vehicle with a strong resale market gives you more value in the long run.

7. Downtime Costs

Often overlooked, downtime costs refer to the financial loss from a truck being out of service. Choosing a reliable model reduces unplanned repairs and maximizes uptime.

Putting It All Together: Sample TCO Calculation

Multiply by 5 years = $58,500 total ownership cost

Why This Matters

Knowing your TCO helps you:

• Choose trucks that offer better value over time

• Budget accurately

• Improve operational efficiency

• Avoid surprises in your bottom line

Conclusion: Think Long-Term, Not Just Upfront

Understanding how to calculate Total Cost of Ownership is essential for any truck buyer—whether you're running a delivery company in Africa or a construction business in Asia. By looking at all the hidden and future costs, you can make a smarter, more profitable decision.

At EVERYCAR.jp, we help our global customers find high-quality used Japanese trucks that deliver strong value through low fuel consumption, minimal maintenance needs, and excellent resale performance.

Let us help you choose a truck that fits your budget not just today—but for years to come.

If you are looking for Japanese Used truck, please check our list.
The list of Used Japanese used truck for sale(*Click to open).

We do our best work for all customer's partnership.
It's for SDGs goal number 17 "PARTNERSHIP FOR THE GOALS".
Let's work together!