TCO (Total Cost of Ownership)
The complete cost of owning and operating a vehicle over its lifecycle, including acquisition, fuel, maintenance, insurance, and depreciation.
Definition
The complete cost of owning and operating a vehicle over its lifecycle, including acquisition, fuel, maintenance, insurance, and depreciation.
Why this term matters in software research
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Total Cost of Ownership (TCO) represents the complete financial impact of a fleet vehicle from acquisition to disposal. TCO includes purchase or lease costs, fuel, maintenance and repairs, insurance, registration, tolls, driver costs, and depreciation. Fleet management software helps calculate and track TCO to inform vehicle replacement decisions and fleet sizing.