Total cost of ownership balloons by a third since 2020
Vehicle total cost of ownership has increased by 32% in just six years, according to the Arval Mobility Observatory.
The automotive insights company has published a new white paper, ‘Understanding Total Cost of Ownership 2027,’ which has revealed that total costs over the lifespan of a vehicle have been driven up by nearly a third since 2020.
It attributes the uptick to higher energy prices, financing and operating costs.
The white paper also identified different factors impacting different power trains. It found that total cost of ownership for petrol and diesel models have go up primarily as a result of fuel price volatility and operational costs, while finance and depreciation have had a greater impact on electric vehicles.
Dan Boiangiu, international Arval Consulting and Arval Mobility Observatory director, said: “As costs continue to rise and volatility affects every component of fleet ownership, organisations need a clear understanding of their total cost of ownership to make informed decisions.
“Total cost of ownership helps put market uncertainty into perspective, assess risk exposure and identify the levers that can strengthen fleet resilience. Through this white paper, we share insights and practical recommendations to support strategic fleet decisions in a rapidly changing environment.”
