Total Cost of Ownership | TCO Hino L8 : calculation, cashflow and tips
✅ At a glance: Hino L8 total cost of ownership
- TCO (total cost of ownership) = depreciation + fuel + annual costs (maintenance/insurance/plate) + interest on financing (in this scenario).
- Scenario used: Hino L8 at $145,000 (purchase) → $80,000 (resale), 5 years, 60,000 km/year, diesel $1.85/L, average consumption 25 L/100 km, other costs $18,000/year, financing 7.99% / 60 months with 15% down payment.
- Depreciation: $13,000/year (145,000 – 80,000 ÷ 5).
- Fuel: $27,750/year (15,000 L/year × $1.85).
- Financing: down payment $21,750, amount financed $123,250, payment ≈ $2,498.48/month, total interest ≈ $26,658.55 over 5 years.
- Monthly recurring cashflow (payment + fuel + annual costs): ≈ $6,125.98/month.
- Major flows: -$21,750 at start (downpayment) and +$80,000 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).
Total Cost of Ownership (TCO) of a Hino L8 full calculation + cashflow (5-year scenario /60,000 km/year)
Buying a truck isn’t just about “a price on an invoice”. The real figure that determines whether your truck is profitable is the Total Cost of Ownership (TCO ): everything the truck costs you per month and per kilometer, over its lifetime… minus the resale value.
If you’re thinking of buying a 6-wheel truck with a GVWR of 35,000 lbs, the Hino L8 is for you. For hauling (20/28-foot box, distribution, fleet) or towing, the price on the invoice is only a small part of the story. What really counts is the TCO Hino L8 or Total Cost of Ownership of the Hino L8: everything the truck will cost you over 5 years, per km, and above all in cash outflow.
In this article, we’ll give you a concrete example based on a realistic scenario, with financing at 7.99% and a down payment of 15%, then show you how to adapt it to YOUR reality.
1) What exactly is TCO?
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 often: $/km.
2) Scenario assumptions (basic figures)
Let’s take a fairly neutral, standard scenario for the transport industry:
Hino L8 (chassis cab only: no equipment) – Purchase price: $145,000
Resale after 5 years: $80,000
Usage: 60,000 km/year
Horizon: 5 years (300,000 km)
Diesel: $1.85/L
Average fuel consumption: 25 L/100 km
Other costs (maintenance + insurance + plate): ≈ $18,000/year
Financing: 7.99% over 60 months
Down payment: 15% or $21,750
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 L8 TCO calculation (step-by-step)
A) Annual depreciation
Dépreciation = (145 000 $–80 000 $)/5 years =13 000$/year
✅ Depreciation: $13,000/year
B) Annual fuel (23 L/100 km) with 60,000 km/year
- Litres/year : 60 000×25/100 = 15 000 L/year
Cost/year : 15 000×1,85 = 27 750 $/year
✅ Fuel: $27,750/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: $145,000 × 15% = $21,750
Amount financed: $145,000 – 21,750 = $123,250
Monthly payment (60 months): $2,498.48/month
Total interest over 5 years: $26,658.55
→ annual average: $5,331.71/year
✅ Interest (annual average): $5,331.71/year
4) Hino L8 TCO results (final figures)
✅ Hino L8 annual TCO
13 000 + 27 750 + 18 000 + 5 331,71 = 64 081,71 $/year
➡️ Annual TCO ≈ $64,082/year
✅ Hino L8 TCO per km
64 081,71 $ / 60 000 km = 1,0680 $/km
➡️ TCO ≈ $1.07/km
✅ Net cost over 5 years (after resale) of the Hino L8
64 081,71/year × 5 years = 320 408,55 $
➡️ Net cost 5 years ≈ $320,409
5) CASHFLOW version: what you actually get out (monthly + yearly)
Cashflow is the reality on the ground: how much you take out per month to drive.
A) Monthly cash flow (months 1 to 60)
Financing payment: $2,498.48/month
Fuel + other monthly costs: (27 750$ + 18 000$) / 12 months = 3 812,50 $/mois
✅ Monthly recurring total:
2 498,48 $+ 3 812,50 $ = 6 310,98 $/mois
➡️ Monthly cashflow ≈ $6,310.98/month
B) One-off flows
Day 0: down payment -$21,750
Month 60: resale +$80,000
➡️ In month 60, you have a net flow of approximately: +$80,000 – $6,310.98 = +$73,689.02
C) Annual cash flow (“management” view)
Each year (1 to 5), you have :
Annual payments: $2,498.48 × 12 ≈ $29,982
Fuel: $27,750
Other costs: $18,000
Annual total ≈ $75,732/year
Year 5: + $80,000 (resale)
D) Verification: net cash cost over 5 years
Total cash out = down payment + 60 payments + (fuel + other costs × 5)
= $21,750 + $149,908.55 + $228,750
= $400,408.55Resale entry = $80,000
✅ 5 -year net cash cost = $320,408.55
(= exactly your 5-year net TCO)
6) Summary (Table): TCO of the Hino L8
Table 1: TCO (Total Cost of Ownership) of the Hino L8 - Summary
| Cost item | Annual ($) | On 5 years ($) | Hypothesis / detail |
|---|---|---|---|
| Depreciation | 13 000,00 | 65 000,00 | (145 000 − 80 000) ÷ 5 |
| Fuel | 27 750,00 | 138 750,00 | 60 000 km/year × 25 L/100 × 1,85 $/L |
| Others cost (maintenance + insurance + license plate) | 18 000,00 | 90 000,00 | Fixed annual Budget |
| Interest (Loan) | 5 331,71 | 26 658,55 | 7,99% / 60 months sur 123 250 $ |
| TCO total (net) | 64 081,71 | 320 408,55 | After resale (including depreciation) |
Table 2: Cash Flow (Outflows/Inflows) – Monthly for the Hino L8
| Element | Amount | Detail |
|---|---|---|
| Deposit (15%) | 21 750,00 $ | Paid on day 0 |
| Amount financed | 123 250,00 $ | 145 000 − 21 750 |
| Monthly payment (Loan) | 2 498,48 $/months | 7,99% / 60 months |
| Fuel + other costs (monthly) | 3 812,50 $/months | (27 750 + 18 000) ÷ 12 |
| Total recurring monthly expenses | 6 310,98 $/months | 2 498,48 + 3 812,50 |
| Resale (On months 60) | 80 000,00 $ | Entered at the end of the term |
| Net flow at the month 60 | +73 689,02 $ | 80 000 − 6 310,98 |
Annual schedule (management perspective)
| Year | Loan payments | Fuel | Other Costs | Total Expenses | Income from resale | Net flow |
|---|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 21 750,00 | 0 | -21 750,00 |
| 1 | 29 981,71 | 27 750,00 | 18 000,00 | 75 731,71 | 0 | -73 511,71 |
| 2 | 29 981,71 | 27 750,00 | 18 000,00 | 75 731,71 | 0 | -73 511,71 |
| 3 | 29 981,71 | 27 750,00 | 18 000,00 | 75 731,71 | 0 | -75 731,71 |
| 4 | 29 981,71 | 27 750,00 | 18 000,00 | 75 731,71 | 0 | -75 731,71 |
| 5 | 29 981,71 | 27 750,00 | 18 000,00 | 75 731,71 | 80 000,00 | +4 268,29 |
| Total on 5 years | 149 908,55 | 138 750,00 | 90 000,00 | 400 408,55 | 80 000,00 | -320 408,55 |
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-monitored planned maintenance
stable insurance
few claims/downtime
Otherwise, this item can escalate rapidly (and this is often where the TCO explodes).
What is the TCO of the Hino L8 in this scenario?
With a $145,000 purchase price,
- Resale: $80,000
- 60,000 km/year
- Diesel cost $1.85/L
- Average fuel consumption: 25 L/100
- Other costs $18,000/year
- Financing 7.99% (15% down payment)
The TCO of the Hino L8 is about ≈ $1.07/km or $320,409 over 5 years,.
How much does a Hino L8 cost "per month" in cashflow?
In recurring outflows, about $6,310.98/month (payment + fuel + maintenance/insurance/plate), plus $21,750 at startup (downpayment), and +$80,000 upon 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.
Recent articles
- All Post
- Employment
- Non classifié(e)
- Security
- Services
- Technology
- Transport
- Truck
More articles
All rights reserved © Groupe National Hino.INC. Powered by WebPlify
