Putting A Price On Whole-Of-Life Cost
Buying a truck is an exciting time. After all, a truck is an important asset and a long-term investment that can impact your business’s bottom line.
But before handing over the cash for your new workhorse, you might stop to think, “What is this truck actually costing me—in the long run?”
As buying a truck can be one of your bigger upfront expense (as most kinds of capital equipment are), the initial sale price is often the primary focus.
But looking at expenses beyond the truck’s sticker price can give you a much clearer picture of how much a truck will cost over the whole of its working life, and ultimately save you some dollars in the long run.
What is whole-of-life cost?
Whole-of-life cost refers to the total cost of owning a certain piece of asset, such as a truck. This takes into account all expenditure associated with a truck from the moment it’s purchased to the moment it’s resold or disposed of.
Whole-of-life cost takes the following into account:
- Initial sale price
- Finance or lease repayments
- Fuel usage
- Servicing and maintenance
- Parts repair and replacement
- Registration, licence and stamp duty
- Insurance
- Estimated resale value at the end of ownership, or disposal cost
- Updated safety features
- Improved fuel economy
- Newer parts and features that could add to the resale value
Playtime’s over, get $3,500* to spend on extras.
If you’re ready to get serious about tackling bigger jobs, grab yourself an NLR 45-150 AMT SWB Traypack from the Ready-to-Work range for $62,990 drive away*. And to prove we aren’t playing, buy any NLR Traypack before June 30 and you’ll get $3,500* to spend on genuine accessories or an Essentials service agreement.
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