What Is My Fleet’s Total Cost of Ownership?

In today’s global transportation environment, a variety of factors have made fleet management more challenging to keep operations running without any issues. One of these is deciding whether to own or lease commercial vehicles.

Owning a commercial fleet involves more than just buying trucks and covering fuel—it includes hidden costs like downtime and administrative overhead. And, due to inflation, fleet managers must adjust where possible to accommodate for rising maintenance costs and interest rates on commercial vehicles.

As market pressures drive these expenses higher, many fleet owners underestimate the cost of running a fleet and may be losing money that could be useful elsewhere within their organization.

In this blog, we’ll explain what total cost of ownership (TCO) really means, compare the cost of a commercial truck lease vs. owning, and show how Ryder’s free TCO assessment can help you discover potential savings – up to 19%– by choosing a full-service lease.

What is Total Cost of Ownership (TCO)?

The total cost of ownership is everything a fleet manager must pay to acquire, store, maintain/repair, and operate a commercial truck, van, tractor, or trailer. TCO is also affected by depreciation of vehicles, as well as any disposal costs associated with selling. For example, when you purchase a truck, you’ll pay the sale price on any commercial vehicle plus applicable upfront fees such as tax. But, once you’re off the lot, you will be responsible for future costs that will inevitably impact your fleet.

Because many variables affect the total cost of ownership, fleet managers that report their own fleet costs often underestimate TCO. For instance, a TCO study by Ryder and KPMG LLP (KPMG) shows a significant difference in self-reported vs. third-party class 8 tractor cost data; at least 14 percent (self-reported) vs. nearly 38 percent (third-party data). In fact, up to 41% of fleets report $0 for critical items like roadside assistance or admin costs.

Commercial Truck Lease vs. Ownership: What’s Really Cheaper?

A common myth in the transportation industry is the idea that “owning is cheaper than leasing” because of the misconception that ownership comes with one-time purchases as opposed to multiple monthly payments on leases.

While it’s understandable to look at commercial truck leasing vs. ownership in this manner, there are a couple factors to consider when looking at both. Aside from the high upfront capital, ownership comes with the burden of administrative costs and unexpected maintenance expenses.

Not only that, but resale headaches are common for individuals who decide to sell a used commercial truck. Leasing, on the other hand, comes with predictable costs each month, includes vehicle maintenance options to save you money on expensive repairs, and even offers substitute vehicles in the event of a vehicle breakdown.

Plus, when looking at the real comparison between leasing and owning a commercial vehicle, there is a difference of up to 19% per mile in savings. Ownership cost per mile is, on average, $0.80, whereas the cost per mile for leasing is $0.65.

Hidden Costs Fleet Owners Overlook

In the KPMG study, the following quote is one excellent way to summarize the hidden costs that fleet owners often overlook: “Even without inflation, it is difficult to capture many of the costs fully and accurately.”

This is because third-party logistics (3PL) providers, vendors, businesses, and other organizations that are involved with freight deliveries, (even if they share a common goal), all charge amounts that can rapidly adjust to market changes. These costs can include:

• Administrative fees from scheduling and compliance
• Substitute vehicle rental rates
• Licensing and legal overhead
• Roadside assistance and cleaning costs
• Equipment replacement costs (i.e. refrigerated units)

Businesses with smaller fleets are subject to higher interest rates and other costs, unlike companies that utilize hundreds of commercial vehicles daily.

Is My Fleet At Risk?

No matter the size of your operation—whether you're running a few vehicles or managing a national fleet—underestimating the total cost of ownership (TCO) can put your business at financial risk. While small and mid-size fleets often feel the pressure of rising costs more acutely, even large fleets with more resources can fall into the trap of hidden expenses and inefficient practices.

For smaller fleets, the lack of economies of scale means higher financing rates, increased per-unit costs, and fewer internal resources to manage the complexities of fleet operations. These fleets may struggle with administrative burden, unplanned downtime, and vendor coordination.

Mid-size fleets often face growing pains—caught between expanding demand and limited resources. These businesses may miss out on bulk savings and still rely on manual processes or inconsistent vendor relationships that inflate TCO.

Even large fleets, despite their buying power and broader infrastructure, are not immune. They can encounter challenges like underutilized assets, siloed cost centers, or outdated maintenance strategies—all of which can erode profitability if left unchecked.

Across the board, the biggest risk is not knowing your true cost. Without a full-picture TCO analysis, decisions about whether to lease or own vehicles may be based on incomplete or inaccurate data, leading to missed opportunities for cost reduction and improved efficiency.

That’s why assessing your TCO—no matter your fleet size—is critical to staying competitive and financially sound in today’s volatile transportation landscape.

Future-Proofing with TCO

At the end of the day, the total cost of ownership for your fleet must be taken seriously to gain an advantage over your competitors and maximize the full potential for your fleet management. Having an accurate TCO helps you make more informed decisions when starting or extending your fleet, from maintenance strategies to investment priorities. Plus, the total cost of ownership isn’t only essential for evaluating trucks; TCO can also drive future powertrain decisions with vehicle type and right sizing your fleet.

When you start future-proofing with a TCO mindset, you’ll be more prepared for changes in regulations, supply and demand fluctuations, and other aspects of transportation management.

Discover Your True Total Cost of Ownership with Ryder

Ready to take a look at your total cost of ownership? We’ve got you covered. When you’re faced with the decision to consider a commercial truck lease or purchase, be sure to get a personalized TCO assessment from Ryder first.

With our proprietary TCO calculator, we can analyze the most important and relevant information you need to uncover hidden costs and identify real savings opportunities.

Schedule your personalized TCO evaluation at ryder.com today.