Total cost of ownership is the metric that almost always changes the conclusion. The headline price of an owned vehicle ignores most of the costs it actually incurs — and those costs add up to a number that surprises most fleet managers.
What TCO should include
- Capital cost or finance interest
- Depreciation
- VED, insurance, MOT
- Servicing, tyres, parts and labour
- Major repairs (the unpredictable line)
- Compliance (DVS permits, tachograph calibration)
- Downtime cost during maintenance and breakdowns
- Driver pay during VOR
- Internal admin and management time
- Disposal cost or residual value risk
Where this changes the maths
A vehicle that "costs £25,000" on the invoice is rarely a £25,000 decision. It's typically a £40k–£60k+ decision over its working life — before lost revenue from downtime is factored in.
Why hire often comes out ahead
Hire bundles maintenance, MOT, breakdown cover and replacement into a fixed rate. The unpredictable lines — major repairs, compliance changes, depreciation — sit with us, not you.
Where hire genuinely doesn't suit
- Highly specialised vehicles with no rental market
- Vehicles that are core to a niche business model
- Operators who actively want to manage maintenance in‑house
For everything else, the maths usually points the same way.
What to do next
Don't take our word for it. We'll run a transparent TCO comparison using your real data.
Want to see what hire actually costs vs. ownership? Speak to SVH for an honest analysis.
