Electric Vehicle - TCO Analysis Pt. 3

In the previous posts about the Total Cost of Ownership (TCO) for an electric vehicle I have detailed the various costs involved with the ownership of an electric vehicle. For the various costs I have described what they are about and given a rough idea on how to fit that to another situation at hand. In this final post on the TCO I will wrap things up with an example calculation, using some nice guesses and round figures to fill in the numbers. For the example I’ll base it on a Nissan Leaf in the Netherlands with an average yearly driving distance of 15.000 km.

The Nissan Leaf is advertised on the website of Nissan for 34.990 Euro, or 35.000 in our example. There are various subsidies involved here in the Netherlands, assumed is a 5000 Euro benefit, as is applicable for residents in Amsterdam. The example uses a 4 year period for depreciation, a period that is used a lot in lease-based contracts. Assuming you will want to drive your own vehicle for a longer period, feel free to adjust this to a longer period. The remaining value of the vehicle, at the end of this period is set at 4000 Euro. There is a lot of debate about what should be the value after depreciation, currently there are not a lot of electric vehicles that are of age to provide real scientific data for this.

Further more, there are costs for the car insurance, and a reservation for repairs. Among the repairs is also the reservation for (winter) tires.

The current value of 671.67 Euro per month is only the base cost, it does not involve the costs to actually drive the vehicle. To get an idea how much you would need to take into account to drive your electric vehicle, the following provides a nice rule of thumb and should be treated as an approximation.

The battery size is 24 kWh and one can drive 160 km when it is fully charged. This equals a distance of 6.67 km per kWh. Assuming a total distance of 15.000 km per year, a total of 2250 kWh is needed to cover this distance over the year. At the average Dutch electricity price of 0.22 Euro / kWh, this equals 495 Euro per year, or 41.25 per month.

This leads down to the estimated TCO, combining the fixed and variable costs, resulting in 712.92 Euro per month.