Whole-of-life cost (total cost of ownership)

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GlossaryUpdated 10 July 2026

Whole-of-life cost is everything a vehicle costs from purchase to disposal, including depreciation, fuel, maintenance, registration, insurance, tax and financing, expressed as a total, a yearly figure or cents per kilometre.

Purchase price is a poor guide to what a vehicle costs; depreciation and fuel usually dominate. Whole-of-life costing puts every bucket on the table so vehicles, and replacement timing, can be compared honestly. It is the standard method fleet bodies like AfMA and IPWEA teach.

Last updated 10 July 2026General information, not tax or legal advice.

Related terms

Keep reading.

Neighbouring terms from the fleet glossary.

Fleet utilisationFleet utilisation is the share of a vehicle's available time, or capacity, that is actually used for work, and it is the single number that reveals how many vehicles a fleet really needs.
Fringe benefits taxFringe benefits tax is the tax an employer pays when a work car is available for an employee's private use, calculated on the car's value or its running costs and paid by the employer, not the driver.FBT

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