1. TCO Summary Section
The summary shows the results of the TCO calculations. It gives you two figures:
- The True Cost to Own figure. This is all of the ownership and operation costs for five years.
- The Total Cash Price for new cars is the sum of a vehicle's True Market Value® (TMV®) price, along with typically equipped options, destination charge, base tax for the state and any applicable luxury or gas-guzzler taxes. For used vehicles, the total cash price shown is the sum of the vehicle's private-party TMV price in "clean" condition, plus typically equipped options, and base tax and fees in your state.
2. Five-Year Details
This section gives a breakdown of how the vehicle's expenses change over the five-year period. It shows the car's depreciation, meaning its decline in value. This would be important if, for example, there were a sudden drop-off in value after the third year. Knowing this, the owner could sell the car before the cliff and avoid the subsequent loss of its value.
The other parts of the breakdown show the typical expenses related to the purchase of this vehicle, including such things as fuel, insurance, maintenance and repairs. These are costs that people sometimes overlook when they're buying a car. Seeing them listed, and then totaled, can help you plan for this large purchase.
By looking at Edmunds TCO data, you get a snapshot of the car's costs over time. You will see the big picture: not just today's price tag.