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Q. How does the Total Cost of Ownership (TCO) for my electric work vehicle compare with a gas or diesel-fueled work vehicle?

The Total Cost of Ownership (TCO) for an electric commercial truck or van compared to a work vehicle with a gas or diesel internal combustion engine (ICE) includes several key factors. These factors help determine the long-term costs of each type of vehicle, and the results can vary depending on usage, location, and specific vehicle models. Here's a breakdown of the main considerations:

1. Initial Purchase Price

Typically, electric commercial trucks or vans have a higher upfront cost compared to ICE vehicles due to the cost of the batteries. However, this price gap is narrowing as EVs become more mainstream and continue to enjoy government incentives.

2. Fuel Costs

Electricity is usually cheaper than gas or diesel on a per-mile basis. The cost of charging depends on local electricity rates and whether you're charging at home, work, or using a commercial EV charging station. On average, EVs cost around $0.03–$0.05 per mile to charge, whereas a gasoline vehicle costs about $0.12–$0.20 per mile to fuel, and diesel averages $0.40-$0.50 per mile.

(These figures are for example purposes only and vary greatly depending on engine and vehicle configuration.)

3. Maintenance and Repairs

Electric Vehicle: Commercial EVs tend to have lower maintenance costs because they have fewer moving parts. For example, there's no need for oil changes, and brake wear is often reduced thanks to regenerative braking. However, the battery might require replacement after many years, which can be expensive, though prices are falling.

ICE Vehicle: ICE vehicles require more regular maintenance (oil changes, exhaust systems, transmission repairs, etc.), which can add up over time. They also tend to have more mechanical parts that are subject to wear and tear.

4. Incentives and Tax Breaks

Electric Vehicle:  Many regions offer government incentives, rebates, and tax credits for purchasing an EV. These retail and Commercial EV incentives can significantly reduce the initial cost of the vehicle and may make the overall TCO more attractive.

ICE Vehicle: Such incentives typically do not apply to ICE vehicles, making them less attractive in terms of TCO compared to EVs in areas with strong government support for electric vehicles.

5. Depreciation

Electric Vehicle: Electric commercial vehicles may experience higher depreciation initially due to the perceived risk of battery degradation or limited range. However, the gap is closing as EV technology becomes more trusted, and there is a growing market for used EVs.

ICE Vehicle: Gasoline vehicles typically depreciate at a predictable rate, but with fewer incentives for electric-powered alternatives, they may hold their value more consistently.

6. Lifespan and Battery Life

Electric Vehicle: The battery is the most critical factor in an electric vehicle’s lifespan. Many EV batteries last between 8–15 years, so it’s possible for an EV to match the operational lifespan of its ICE counterpart in the context of the replacement cycle of a commercial fleet.

ICE Vehicle: ICE engines can last many years, and with proper maintenance, diesel engines often exceed 200,000 miles. This can be an important point for fleets with extended replacement cycles.

7. Operational Efficiency

Commercial EVs are highly efficient in converting energy into movement, with lower energy loss than ICE vehicles. They are also more energy-efficient in stop-and-go traffic, a condition that significantly increases the fuel consumption of ICE vehicles.

8. Environmental Impact

EVs produce zero tailpipe emissions, making them a more environmentally friendly choice, especially at the local level. However, the global environmental impact can vary based on how the electricity is generated, how the critical minerals for the batteries are mined, the environmental impact of recycling the batteries, etc.

TCO Comparison Summary

Upfront Costs: Electric commercial trucks and vans typically cost more initially, but government incentives can lower this gap.

Fuel Costs: Electric commercial vehicles generally cost less to fuel than ICE vehicles.

Maintenance Costs: Electric commercial vehicles have lower maintenance costs due to fewer moving parts.

Depreciation: Commercial EVs may depreciate faster, but this is changing over time as EV adoption increases.

Environmental Impact: EVs produce no gaseous or particulate emissions.

In the long run, an electric work vehicle often has a lower TCO due to lower fuel and maintenance costs, despite a higher initial purchase price. If your operation is in an area with incentives for electric vehicles and if the vehicle is used for regular, high-mileage operations, the TCO for an EV could be significantly lower than for an ICE vehicle.

Calculate the total cost of ownership (TCO) for your electric fleet vehicles

This TCO calculator goes beyond the standard sticker price, providing a comprehensive view of the total cost of ownership for each of your commercial EV options. Seeing the full picture is paramount to making the right decision, which is why factors like fuel costs (electricity vs. gas/diesel) and maintenance costs are included here. Discover more insights into the electric commercial vehicle space—visit the Comvoy CEV Hub today!