June 26, 2020 - Athlon International, one of the leading providers of vehicle leasing and fleet management services and a part of Daimler Mobility AG, has developed a simulator that enables users to quickly and easily compare the total cost of ownership (TCO) of vehicles.
This new online platform transparently depicts all of the vehicle-related costs of models with various drive technologies. In this way, it shows how the cost of vehicles with alternative drive systems, such as electric vehicles and plug-in hybrids, differs from that of vehicles equipped with conventional combustion engines.
New tax breaks for drivers of company cars with electric or plug-in hybrid drive systems in many European countries are increasing the demand for electric mobility among company employees. However, the factor that determines which vehicle a company will select is the total cost of ownership. One of the reasons why businesses are still wary of switching to electric vehicles is that they think that these vehicles will lead to higher costs. Although the net list price and leasing fee of electric vehicles are usually higher than those of comparable models equipped with combustion engines, they reflect only part of the total cost of ownership. To this must be added the cost of fuel, maintenance, and service as well as taxes — all of these costs are generally lower for electric cars. In addition, some countries offer an “environmental premium” or other benefits for electric cars that also need to be taken into account.
Athlon International’s free TCO Simulator now handles the complex calculation of operating costs for fleet managers. Because Athlon is a multibrand leasing provider, customers can use the simulator to calculate the TCO of around 100 models from a wide variety of brands. The calculation takes into account the vehicle model, the term of the contract, the expected mileage, the loss in value, the fleet size, the maintenance and insurance costs, the country-specific taxes, and the cost of fuel. It even inquires about the driving style and how much fuel is expected to be consumed as a result. In addition, it takes into consideration the different electricity costs when charging a vehicle at home, in the office, or at public charging stations.
The results are provided for a specific country. The TCO Simulator incorporates the effects of local regulations and laws into its calculations. Among other things, it takes benefits in kind, incentives, company car taxes, tax breaks, and the respective VAT into account. And all the user has to do is make a few clicks. The TCO Simulator is currently available in Germany, Belgium, France, the Netherlands, and the UK.
The advantages of the TCO Simulator
- Users can compare up to five different vehicles with regard to their brand, model, fuel type, term of contract, fleet size, and fuel and energy consumption.
- It provides a direct cost comparison between different drive technologies such as electric drives and gasoline or diesel engines.
- Detailed itemizing of the TCO of your preferred vehicles.
- Free and fast assessment of your total cost of ownership.
- Country-specific comparison of the operating costs that takes local regulations and legal conditions into account.
Try the TCO Simulator out for yourself at: TCO by Athlon