When a site manager asks us for an electric utility vehicle quote, the operational case is usually settled. Things slow down when finance compares it against a cheaper option.
Since 1976, we’ve found that the purchases that get signed off are backed by a clear total cost of ownership (TCO) case. Here’s how to build one for electric utility vehicles in Australia.
Key points
- TCO covers purchase, charging, maintenance, downtime and resale value, not just the quoted price.
- Charging costs are simple to estimate from your duty cycle and tariff.
- Fewer service items means less time off the floor.
- A short hire trial gives approvers real site data instead of brochure figures.
What does total cost of ownership include for commercial electric vehicles?
TCO is the full cost of owning a vehicle from delivery to disposal. For commercial electric vehicles on Australian sites, five lines cover most of it.
- Purchase: vehicle, battery, charger, accessories and delivery.
- Energy: electricity used for charging.
- Maintenance: servicing, tyres, brakes and parts.
- Downtime: lost productivity while the vehicle is unavailable.
- End-of-life value: resale or trade-in value.
Model these over the period you normally keep site vehicles.
Purchase price: getting a quote that holds up in review
A battery-operated vehicle usually costs more upfront, and the quote is where many business cases come unstuck. Two quotes can differ by thousands of dollars simply because one includes the charger and the other doesn’t.
Ask your supplier to itemise battery type and capacity, the charger, warranty terms on the vehicle and battery, accessories, and delivery and training. Battery choice deserves its own line. Lithium can offer lower weight, opportunity charging, and less routine battery maintenance than flooded lead-acid, though lifespan and warranty depend on the manufacturer.
Charging: what will energy cost your site?
Charging is the easiest line to estimate, and usually one of the smallest. You need three numbers: energy used per shift, shifts per year, and your price per kilowatt-hour (kWh).
The 2026-27 Victorian Default Offer puts the average small business bill at $3,380 for 10,000 kWh a year (Essential Services Commission), roughly 34 cents per kWh including supply charges. As a worked example, a vehicle drawing 10 kWh a night across 250 working days uses 2,500 kWh, or about $850 a year. Use your own tariff for the real figure.
Confirm the charger and circuit each model needs, and get an electrician’s quote early.
Replacing a diesel unit? Use its actual fuel spend net of fuel tax credits, currently 53.7 cents per litre for off-road business use (ATO). Our electric vs diesel utility vehicles guide covers the wider comparison.
Maintenance and downtime: the costs that rarely reach the spreadsheet
Electric drivetrains have fewer wearing parts and fewer items to service. US Department of Energy research found battery electric road vehicles cost around 40% less to maintain than combustion vehicles (Argonne National Laboratory). Ask for service intervals and parts pricing for your chosen model.
Downtime is harder to price but worth quantifying. When a utility vehicle is off the floor, staff walk further, loads get handled twice, and jobs slip. Estimate hours lost per breakdown and multiply by labour cost. Then check what keeps downtime short. Our Maribyrnong team provides servicing, mobile technicians, and spare parts for the vehicles we supply.
How to build a TCO case that gets through approval
Approvals stall on unanswered questions. Build your case in this order:
- Record your duty cycle: distance per shift, loads, gradients and hours.
- Request an itemised quote.
- Model each cost line over your ownership period.
- Add a downtime estimate from your own records.
- Trial a vehicle on site before final sign-off.
A trial often settles a hesitant committee. With industrial vehicle hire through Hire It Now, you can run an electric model, such as the EMC Vantage, on your own routes and bring real usage data into the meeting.
Need help with the numbers? Talk to our team, and we’ll prepare an itemised quote and help you build a TCO comparison for your site.
Frequently Asked Questions
1. What is total cost of ownership for an electric utility vehicle?
It’s the full cost of owning the vehicle across its working life: purchase, charging, maintenance and downtime, less resale value. It gives a fairer picture than purchase price alone.
2. How long should we model total cost of ownership over?
Use the period your business normally keeps site vehicles. A shorter and longer scenario alongside it shows how sensitive the result is.
3. How do we estimate charging costs?
Multiply energy used per shift by shifts per year, then by your per-kWh rate. The 2026-27 Victorian Default Offer works out to roughly 34 cents per kWh for an average small business (Essential Services Commission).
4. What should procurement ask for in a quote?
Ask for battery type, charger details, warranty terms, accessories, delivery, and training, each listed separately. Confirm site power requirements too, since charging systems vary by model.
5. Can we trial a vehicle before buying?
Yes. Short- and long-term hire lets you test a vehicle on your own routes before committing. Ask our team about hire options across Melbourne and Australia.
