In order to accurately compare the costs of two vehicles, the total cost of ownership (TCO) should consist of all costs related to both purchasing and operating the vehicle. This TCO analysis builds on previous work to provide a comprehensive perspective of all relevant vehicle costs of ownership. In this report, the authors present what they believe to be the most comprehensive explicit financial analysis of the costs that will be incurred by a vehicle owner. This study considers vehicle cost and depreciation, financing, fuel costs, insurance costs, maintenance and repair costs, taxes and fees, and other operational costs to formulate a holistic total cost of ownership and operation of multiple different vehicles. For each of these cost parameters that together constitute a comprehensive TCO, extensive literature review and data analysis were performed to find representative values in order to build a holistic TCO for vehicles of all size classes. The study finds that Electric and electrified powertrains have lower maintenance and repair costs than internal combustion engine (ICE) powertrains for all vehicle sizes, relative to vehicle price. While the HEV begins as the lowest cost powertrain for passenger vehicles, fuel cells are forecast to reach cost parity by 2030 when hydrogen prices reach $5/kg while battery electric vehicles (BEV) reach cost parity by 2035 at a battery cost of $98 per usable kWh of capacity, with these two technologies being the lowest cost in 2050.

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