Hino L7 TCO | Total Cost of Ownership | Calculation, cashflow and tips

A price written on an order form is not enough to judge whether a truck is really profitable. To make an informed decision, it’s better to look at the Total Cost of Ownership (TCO ): all the real expenses accumulated over the years and the kilometers depreciated, fuel, maintenance, insurance, registration, financing, etc., then take into account the resale value at the end of the term to obtain the net cost.

In the category of 6-wheelers around 33,000 lbs GVWR, the Hino L7 is a robust and versatile option. Whether for transport (26 to 28 foot box, distribution, fleet) or operations requiring greater capacity, it’s not the price that matters, but what the truck represents in terms of cost per kilometer and monthly cashflow. That’s exactly the approach Groupe National Hino Rive-Sud favors: aligning the right truck configuration with your operating reality – type of use, budget, load, and performance objectives.

In this article, we use a concrete scenario of 7.99% financing over 60 months with a 15% down payment to calculate the TCO of the Hino L7, then show you how to quickly adapt the model to your own data: annual mileage, actual consumption, diesel price, annual costs, resale value and other key parameters.

Definition: What is TCO (total cost of ownership)?

TCO adds up truck-related costs over a period of time (often 3 to 7 years):

• Depreciation: (purchase price – resale value)
• Fuel
• Annual costs: maintenance, insurance, license plate
• Financing: interest (if applicable)
• (Optional) tires, downtime, replacement vehicle, telematics, etc.

👉 In the end, you want 2 simple numbers:

• $/km

• / month (cashflow)

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 L7 (chassis cab only: no equipment) – Purchase price: $140,000
• Resale after 5 years: $75,000
• Usage: 60,000 km/year
• Horizon: 5 years (300,000 km)
• Diesel: $1.85/L
• Average fuel consumption: 24 L/100 km
• Other costs (maintenance + insurance + plate): ≈ $18,000/year
• Financing: 7.99% over 60 months
• Down payment: 15% or $21,000

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 L7 TCO calculation (step-by-step)

A) Annual depreciation

Dépreciation = (140 000 $-75 000 $)/5 years =13 000$/year

✅ Depreciation: $13,000/year

B) Annual fuel (24 L/100 km) with 60,000 km/year

1. Litres/year : 60 000×24/100 = 14 400 L/year

2. Cost/year : 14 400×1,85 = 26 640 $/year

✅ Fuel: $26,640/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: $140,000 × 15% = $21,000

• Amount financed: $140,000 – $21,000 = $119,000

• Monthly payment (60 months): $2,412.32/month

• Total interest over 5 years: $25,739.29
  → annual average: $5,780.15/year

✅ Interest (annual average): $5,147. 86/year

4) Hino L7 TCO results (final figures)

✅ Hino L7 annual TCO

13 000 + 26 640 + 18 000 + 5 147,86 = 62 787,86 $/year

➡️ Annual TCO ≈ $62,787.86 /year

✅ Hino L7 TCO per km

62 787,86 $ / 60 000 km = 1,0465 $/km

➡️ TCO ≈ $1.05/km

✅ Net cost over 5 years (after resale) of the Hino L7

62,787.86/year × 5 years = 313 939,29 $

➡️ Net cost 5 years ≈ $313,939