Total Cost of Ownership | TCO Hino L6 : calculation, cashflow and tips

A price on a purchase order doesn’t say much about a truck’s profitability. To make an informed decision, it’s best to look at the Total Cost of Ownership (TCO): everything the vehicle actually costs you over time and kilometers – depreciation, fuel, maintenance, insurance, registration, financing, and more – then subtract the resale value at the end of the term.

In the category of 6-wheelers around 26,000 lb GVWR, the Hino L6 stands out as a solid choice. Transport (20/26-foot box, distribution, fleet) or light towing within the limits of a class 5 license, the key factor is not the price, but what the truck represents in terms of cost/km and monthly cashflow. This is the type of analysis that Groupe National Hino Rive-Sud puts forward to align the truck with your reality: use, budget and operating objectives.

In this article, we start with a concrete scenario ( 7.99% financing with 15% down payment) to calculate the TCO of the Hino L6, then show you how to easily adjust the model to your data (annual mileage, fuel consumption, diesel price, resale value, etc.).

1) What exactly is TCO?

TCO adds up all the real costs involved in operating the truck:

1. Depreciation (purchase – resale)
2. Financing (interest, fees)
3. Fuel
4. Preventive maintenance (scheduled services)
5. Repairs/contingencies
6. Tires/brakes
7. Insurance + registration/license
8. 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

1. Litres/year : 60 000×25/100 = 13 800 L/year

2. 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