TCO Hino L6 | Calculating the Total Cost of Ownership | Tips
In summary :
- TCO (total cost of ownership) = depreciation + fuel + annual costs (maintenance/insurance/plate) + interest on financing (in this scenario).
- Scenario used: Hino L8 at $130,000 (purchase) → $70,000 (resale), 5 years, 60,000 km/year, diesel $1.85/L, average consumption 23 L/100 km, other costs $18,000/year, financing 7.99% / 60 months with 15% down payment.
- Depreciation: $12,000/year (130,000 – 70,000 ÷ 5).
- Fuel: $25,530/year (13,800 L/year × $1.85).
- Financing: down payment $19,500, amount financed $110,500, payment ≈ $2,240.01/month, total interest ≈ $23,900.77 over 5 years.
Hino L6 TCO result: ≈ $60,310.15/year, or ≈ $1.01/km, and ≈ $301,550.77 net over 5 years (after resale.)
- Monthly recurring cashflow (payment + fuel + annual costs): ≈ $5,867.51/month.
- Major flows: -$19,500 at start (downpayment) and +$70,000 at end (resale).
- Lever #1: consumption by driving 60,000 km/year, +1 L/100 km = $1,110/year (on diesel at $1.85/L).
- What really moves the TCO: fuel consumption, diesel price, resale value, and stability of annual costs (maintenance/insurance/plate).
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Total Cost of Ownership Hino L6 full calculation + cashflow (5-year scenario / 60,000 km/year)
Buying a truck isn’t just about looking at the amount on the order form. To know whether a vehicle is really profitable, you need to analyze its Total Cost of Ownership (TCO): all the expenses that accumulate month after month and per kilometer (depreciation, fuel, maintenance, insurance, registration, financing, etc.), over the entire period of use, minus the resale value.
If you’re shopping for a 6-wheel truck in the 26,000 lb GVWR range, the Hino L6 is a very attractive option. Whether for haulage (20/26′ box, distribution, fleet) or light towing within the context of a Class 5 permit, the listed price is just a starting point. What really counts is the Hino L6’s TCO (Total Cost of Ownership): how much it costs you over 5 years, per km, and above all in real cash outflow.
In this article, we present you with an example based on a realistic 7.99% financing scenario with 15% down payment , and then show you how to adjust this model to reflect your usage (mileage, consumption, diesel price, resale value, etc.).
1) What does TCO actually mean?
The TCO adds up all the real costs involved in operating the truck:
- Depreciation (purchase – resale)
- Financing (interest, fees)
- Fuel
- Preventive maintenance (scheduled services)
- Repairs/contingencies
- Tires/brakes
- Insurance + registration/license
- Downtime: towing, delays, replacement rentals, loss of opportunity
👉 The right indicator to compare two trucks is generally: $/km
Why it’s useful
Because two trucks can have a similar purchase price… but cost very differently:
- one consumes more than the other
- one retains its value better (and therefore has a higher resale value)
- one has higher maintenance costs
- one makes you lose more time in downtime
👉 The TCO allows you to compare “apples to apples” and decide with a concrete figure:
- Annual TCO (budget)
- TCO per km (profitability / operating cost)
2) Scenario assumptions (basic figures)
Let’s take a fairly neutral, standard scenario for the transport industry:
- Hino L6 (chassis cab only: no equipment) – Purchase price: $130,000
- Resale after 5 years: $70,000
- Usage: 60,000 km/year
- Horizon: 5 years (300,000 km)
- Diesel: $1.85/L
- Average fuel consumption: 23 L/100 km
- Other costs (maintenance + insurance + plate): ≈ $18,000/year
- Financing: 7.99% over 60 months
- Down payment: 15% or $19,500
Please note taxes (GST/QST), administration fees, tires, downtime and consumption variations (city/highway/load/ralentiate) are not included here, to keep the model clear and comparable.
3) Hino L6 TCO calculation (step-by-step)
A) Annual depreciation
Dépreciation = (130 000 $–70 000 $)/5 years =12 000$/year
✅ Depreciation: $12,000/year
B) Annual fuel (23 L/100 km) with 60,000 km/year
- Litres/year : 60 000×25/100 = 13 800 L/year
Cost/year : 13 800×1,85 = 25 530 $/year
✅ Fuel: $25,530/year
C) Other annual costs (Approximately $18,000/year)
✅ Maintenance + insurance + plate: ≈ $18,000/year
D) Financing (7.99% over 60 months, 15% down payment)
Downpayment: $130,000 × 15% = $19,500
Amount financed: $130,000 – 19,500 = $110,500
Monthly payment (60 months): $2,240.01/month
Total interest over 5 years: $23,900.77
→ annual average: $4,780.15/year
✅ Interest (annual average): $4,780. 15/year
4) Hino L6 TCO results (final figures)
✅ Hino L6 annual TCO
12 000 + 25 530 + 18 000 + 4 780,15 = 60 310,15 $/year
➡️ Annual TCO ≈ $60,310.15/year
✅ Hino L6 TCO per km
60 310,15 $ / 60 000 km = 1,0052 $/km
➡️ TCO ≈ $1.01/km
✅ Net cost over 5 years (after resale) of the Hino L6
60,310.15/year × 5 years = 301 550,77 $
➡️ Net cost 5 years ≈ $301,551
5) CASHFLOW version: what you actually get out (monthly + yearly)
Cashflow is the reality on the ground: how much the truck costs you per month to run.
A) Monthly cash flow (months 1 to 60)
Financing payment: $2,240.01/month
Fuel + other monthly costs: (25 530$ + 18 000$) / 12 months = 3 627,50 $/mois
✅ Monthly recurring total:
2 240,01 $+ 3 627,50 $ = 5 867,51 $/mois
➡️ Monthly cashflow ≈ $5,867.51/month
B) One-off flows
Day 0: down payment -$19,500
Month 60: resale +$70,000
➡️ In month 60, you have a net cash flow of approximately: +70,000 – 5,867.51 = +$64,132.49
C) Annual cash flow (“management” view)
Each year (1 to 5), you have :
Annual payments: $2,240.01 × 12 ≈ $26,880.15
Fuel: $25,530
Other costs: $18,000
Annual total ≈ $70,410.15/year
Year 5: + $70,000 (resale)
D) Verification: net cash cost over 5 years
Total cash out = down payment + 60 payments + (fuel + other costs × 5)
= $19,500 + $134,400.77 + $217,650
= $371,550.77Resale entry = $70,000
✅ 5 -year net cash cost = $301,550.77
(= exactly your 5-year net TCO)
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6) Summary (Table): TCO of the Hino L6
Table 1: Hino L6 TCO (Total Cost of Ownership) — Summary
| Cost item | Annual ($) | Over 5 years ($) | Assumption / detail |
|---|---|---|---|
| Depreciation | 12 000,00 | 60 000,00 | (130 000 − 70 000) ÷ 5 |
| Fuel | 25 530,00 | 127 650,00 | 60,000 km/year × 23 L/100 × $1.85/L |
| Other costs (maintenance + insurance + registration) | 18 000,00 | 90 000,00 | Fixed annual budget |
| Interest (financing) | 4 780,15 | 23 900,77 | 7.99% / 60 months on $110,500 |
| Total TCO (net) | 60 310,15 | 301 550,77 | After resale (included via depreciation) |
Table 2: Cash Flow (Outflows/Inflows) — Monthly for the Hino L6
| Item | Amount | Detail |
|---|---|---|
| Down payment (15%) | 19 500,00 $ | Paid on day 0 |
| Amount financed | 110 500,00 $ | 130 000 − 19 500 |
| Monthly payment (financing) | 2 240,01 $/month | 7.99% / 60 months |
| Fuel + other costs (monthly) | 3 627,50 $/month | (25 530 + 18 000) ÷ 12 |
| Total recurring monthly outflow | 5 867,51 $/month | 2 240,01 + 3 627,50 |
| Resale (month 60) | 70 000,00 $ | Inflow at the end of the term |
| Net cash flow in month 60 | +64 132,49 $ | 70 000 − 5 867,51 |
Annual schedule (management view)
| Year | Financing payments | Fuel | Other costs | Total outflows | Resale inflow | Net cash flow |
|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 19 500,00 | 0 | -19 500,00 |
| 1 | 26 880,15 | 25 530,00 | 18 000,00 | 70 410,15 | 0 | -70 410,15 |
| 2 | 26 880,15 | 25 530,00 | 18 000,00 | 70 410,15 | 0 | -70 410,15 |
| 3 | 26 880,15 | 25 530,00 | 18 000,00 | 70 410,15 | 0 | -70 410,15 |
| 4 | 26 880,15 | 25 530,00 | 18 000,00 | 70 410,15 | 0 | -70 410,15 |
| 5 | 26 880,15 | 25 530,00 | 18 000,00 | 70 410,15 | 70 000,00 | -410,15 |
| Total (5 years) | 134 400,77 | 127 650,00 | 90 000,00 | 371 550,77 | 70 000,00 | -301 550,77 |
7) The levers that really move your TCO (and how to control them)
1) Fuel consumption (L/100): lever #1
With 60,000 km/year and $1.85/L :
- +1 L/100 km = +600 L/year
- Annual impact = 600 × 1.85 = $1,110/year
- Impact over 5 years = +$5,550
👉 Conclusion: a difference of 23 vs 26 L/100 changes your TCO in a major way.
2) Diesel prices: the other critical lever
Same calculation: each price/L variation directly affects your cost/km.
👉 Tip: keep a range (e.g. low / medium / high) in your projections.
3) Resale value
- +$10,000 on resale = -$2,000/year over 5 years
- It comes down to: maintenance, history, general condition, corrosion, tires, mechanical file.
4) “Other costs” (maintenance/insurance/plate)
In our $18,000/year scenario, this is solid if :
- Well-tracked planned maintenance
- Stable insurance
- Few claims/downtime
Otherwise, this item can escalate rapidly (and this is often where the TCO explodes).
Download our free TCO calculator!
Keep your free TCO calculator on your device for life.
What is the TCO of the Hino L6 in this scenario?
With a $130,000 purchase price,
- Resale: $70,000
- 60,000 km/year
- Diesel cost $1.85/L
- Average fuel consumption: 23 L/100
- Other costs $18,000/year
- Financing 7.99% (15% down payment)
The TCO of the Hino L6 is about ≈ $1.01/km or $301,551 over 5 years,.
How much does a Hino L6 cost "per month" in cashflow?
Recurring outflows, approximately $5,867.51/month (payment + fuel + maintenance/insurance/plate), plus $19,500 at startup (downpayment), and +$70,000 on resale.
Does financing change depreciation?
No. Depreciation is still purchase – resale. Financing adds an interest cost that increases your TCO.
What's the best way to reduce TCO?
In practice, the three most effective levers are :
reduce actual consumption (idling, road, load, driving)
stabilize annual costs (planned maintenance + insurance)
maximize resale value (history, condition, maintenance)
Why compare in $/km?
Because it neutralizes the “I drive more/less” effect, and makes it possible to compare two configurations more accurately.
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