In summary: TCO (total cost of ownership) = depreciation + fuel + annual costs (maintenance/insurance/plate) + interest on financing(in this scenario). Scenario used (Hino L6): $130,000 (purchase) → $70,000 (resale), 5 years, 60,000 km/year, diesel $1.85/L, consumption 23 L/100 km, other costs $18,000/year, financing 7.99% / 60 months with 15% down payment. Depreciation: $12,000/year (130000-70000)÷5 Fuel: $25,530/year (13,800 L/year × $1.85). Financing: down payment $19,500, amount financed $110,500, payment ≈ $2,240.01/month, total interest ≈ $23,900.77 over 5 years. ✅ Hino L6 TCO result: ≈ $60,310.15/year, or ≈ $1.01/km, and ≈ $301,550.77 net over 5 years (after resale). Monthly recurring cashflow (payment + fuel + annual costs): ≈ $5,867.51/month. Major flows: -$19,500 at start (downpayment) and +$70,000 at end (resale). Lever #1: consumption at 60,000 km/year, +1 L/100 km = $1,110/year (with diesel at $1.85/L). What really moves the TCO: fuel consumption, diesel price, resale value, and stability of annual costs (maintenance/insurance/plate). Download our free TCO calculator! Keep your free TCO calculator on your device for life. Download our TCO calculator (Total Cost of Ownership) Your first name Your surname Enter your e-mail address Enter your phone number Download the calculator Overview of the TCO calculator you’re about to get Download our TCO calculator (Total Cost of Ownership) Overview of the TCO calculator you’re about to get Download the calculator Total Cost of Ownership Hino L6 full calculation + cashflow (5-year scenario / 60,000 km/year) Buying a truck isn’t just about confirming a price on a purchase order. To measure the real profitability of a vehicle, you need to look at its Total Cost of Ownership (TCO ): all the expenses that add up month after month and per kilometer (depreciation, fuel, maintenance, insurance, registration, financing, etc.), over the entire operating period, minus the resale value. If you’re shopping for a 6-wheel truck around 26,000 lb GVWR, the Hino L6 is a particularly attractive option. Whether for haulage (20/26 ft box, distribution, fleet) or light towing, all within the context of a Class 5 permit, the price is just a starting point. What really counts is the Hino L6’s TCO (Total Cost of Ownership): how much it costs you over 5 years, per km, and above all in real cash outflow. At Hino Drummondville, we support companies in this analysis to avoid unpleasant surprises and compare options objectively. In this article, we present an example based on a realistic 7.99% financing scenario with a 15% down payment, then show you how to adjust the model to reflect your usage (mileage, consumption, diesel price, resale value, etc.). 1) What exactly is TCO (Total cost of ownership) ? TCO adds up all the real costs involved in operating the truck: Depreciation (purchase – resale) Financing (interest, fees) Fuel Preventive maintenance (scheduled services) Repairs/contingencies Tires/brakes Insurance + registration/license Downtime: towing, delays, replacement rentals, loss of opportunity 👉 The right indicator to compare two trucks is generally: $/km Why it’s useful Because two trucks can have a similar purchase price… but cost very differently: one consumes more than the other one retains its value better (and therefore has a higher resale value) one has higher maintenance costs one makes you lose more time in downtime 👉 The TCO allows you to compare “apples to apples” and decide with a concrete figure: Annual TCO (budget) TCO per km (profitability / operating cost) 2) Scenario assumptions (basic figures) Let’s take a fairly neutral, standard scenario for the transport industry: Hino L6 (chassis cab only: no equipment) – Purchase price: $130,000 Resale after 5 years: $70,000 Usage: 60,000 km/year Horizon: 5 years (300,000 km) Diesel: $1.85/L Average fuel consumption: 23 L/100 km Other costs (maintenance + insurance + plate): ≈ $18,000/year Financing: 7.99% over 60 months Down payment: 15% or $19,500 Please note taxes (GST/QST), administration fees, tires, downtime and consumption variations (city/highway/load/ralentiate) are not included here, to keep the model clear and comparable. 3) Hino L6 TCO calculation (step-by-step) A) Annual depreciation Dépreciation = (130 000 $-70 000 $)/5 years =12 000$/year ✅ Depreciation: $12,000/year B) Annual fuel (23 L/100 km) with 60,000 km/year Litres/year : 60 000×25/100 = 13 800 L/year Cost/year : 13 800×1,85 = 25 530 $/year ✅ Fuel: $25,530/year C) Other annual costs (Approximately $18,000/year) ✅ Maintenance + insurance + plate: ≈ $18,000/year D) Financing (7.99% over 60 months, 15% down payment) Downpayment: $130,000 × 15% = $19,500 Amount financed: $130,000 – 19,500 = $110,500 Monthly payment (60 months): $2,240.01/month Total interest over 5 years: $23,900.77→ annual average: $4,780.15/year ✅ Interest (annual average): $4,780. 15/year 4) Hino L6 TCO results (final figures) ✅ Hino L6 annual TCO 12 000 + 25 530 + 18 000 + 4 780,15 = 60 310,15 $/year ➡️ Annual TCO ≈ $60,310.15/year ✅ Hino L6 TCO per km 60 310,15 $ / 60 000 km = 1,0052 $/km ➡️ TCO ≈ $1.01/km ✅ Net cost over 5 years (after resale) of the Hino L6 60,310.15/year × 5 years = 301 550,77 $ ➡️ Net cost 5 years ≈ $301,551 5) CASHFLOW version: what you actually get out (monthly + yearly) Cashflow is the reality on the ground: how much the truck costs you per month to run. A) Monthly cash flow (months 1 to 60) Financing payment: $2,240.01/month Fuel + other monthly costs: (25 530$ + 18 000$) / 12 months = 3 627,50 $/mois ✅ Monthly recurring total: 2 240,01 $+ 3 627,50 $ = 5 867,51 $/mois ➡️ Monthly cashflow ≈ $5,867.51/month B) One-off flows Day 0: down payment -$19,500 Month 60: resale +$70,000 ➡️ In month 60, you have a net cash flow of approximately: +70,000 – 5,867.51 = +$64,132.49 C) Annual cash flow (“management” view) Each year (1 to 5), you have : Annual payments: $2,240.01 × 12 ≈ $26,880.15 Fuel: $25,530 Other costs: $18,000 Annual total ≈ $70,410.15/year Year 5: + $70,000 (resale) D) Verification: net cash cost over 5 years Total cash out = down payment + 60 payments + (fuel + other costs × 5)= $19,500 + $134,400.77 + $217,650=