Why is TCO important?
TCO is important to calculate because it helps fleet managers and owners better manage their fleet. Fleet total cost of ownership demonstrates the true costs of owning and operating a fleet. Therefore, using this information, fleet managers and owners can track costs and determine how to optimize fleet performance to maximize their return on investment. Fleet total cost of ownership can also help fleet managers recognize and address safety-related issues and identify how new technology can assist with fleet management. Most importantly, TCO can help with important financial and business decisions.
For example, accurate TCO figures can assist with detailed financial reporting, decisions about when to replace fleet vehicles, maximizing profitability and ROI, and monitoring vehicle and driver performance.