Work Truck Logo
MenuMENU
SearchSEARCH

Depreciation Drives TCO Increases in Q4

According to Vincentric, fleet costs per mile for most vehicle categories increased slightly in the fourth quarter, tempered by falling fuel prices.

Chris Brown
Chris BrownAssociate Publisher
Read Chris's Posts
January 10, 2024
Depreciation Drives TCO Increases in Q4

Ownership costs for the pickup category crested the $ .90-per-mile mark for the first time, then cooled to end the year. Car and SUV costs have been less volatile over the past few quarters with an overall moderate rise.

Photo: Vincentric

2 min to read


Welcome to the latest installment of Fleet Data Depot, which provides snapshots of information, trends, and analysis relevant to the fleet market.

The total cost of ownership experts at Vincentric deliver another quarterly update on per-mile ownership costs for fleets over the previous 12 months. These fleet cost-per-mile calculations are for the fourth quarter of 2023. 

Ad Loading...

This analysis is based on vehicles driven 20,000 miles per year for three years. As usual, Vincentric calculates its standard eight cost elements: depreciation, financing, fees and taxes, fuel, insurance, maintenance, opportunity cost, and repairs.

Ownership costs for luxury passenger cars and SUVs have been on an uneven yet steady rise over the past few quarters, with average costs per mile now at or close to all-time highs.

Photo: Vincentric

Cost Per Mile Increases   

The fleet costs per mile for most vehicle categories increased slightly in the fourth quarter of 2023, though the Passenger Cars and Pickups categories remained the same:

  • Luxury Car: increased by ~2.4%

  • Luxury SUVs: increased by ~1.8%

  • Passenger Cars: 0% change

  • Pickups: 0% change

  • SUVs: increased ~1.2%

The fourth-quarter data contrasts with the third quarter, in which costs for most vehicle categories decreased slightly, though the Pickups and SUVs categories remained the same over the previous quarter. 

The increases in cost per mile were primarily caused by increases in depreciation costs, which ranged from 6% to 7% higher on average in the quarter compared to the previous quarter. According to Vincentric, the increase is likely primarily due to the high number of MY24 vehicles it has received from its data provider since last quarter.

Ad Loading...

Although depreciation costs increased, Vincentric noted that fuel costs for all segments decreased by 7% to 10% compared with the third quarter. 

To understand up-to-date lifecycle costs and fleet incentives based on model and class, visit here.

Originally posted on Automotive Fleet

More Small Fleet

Cover of a whitepaper titled “The Hidden Costs of Departmentally Assigned Vehicles on Your Fleet” featuring a black fleet vehicle driving on a road at sunset. Subheadline reads: “Discover how your fleet can reduce costs and minimize risk by implementing vehicle sharing.” The document focuses on fleet optimization, vehicle sharing, cost reduction, utilization tracking, and risk management for fleet operations.
SponsoredMay 13, 2026

Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools

Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.

Read More →
SponsoredMarch 9, 2026

Boosting Last-Mile Fleet Uptime, Safety, and Value with AI Vehicle Inspections

AI-powered inspections are transforming last-mile fleets by replacing manual checks with highly accurate automated scans that detect defects in seconds. By giving fleet operations visibility into the daily condition of their vehicles, you can identify trends over the vehicle’s lifecycle that enable improved procurement decisions, route management, driver training and accountability.

Read More →
SponsoredMarch 1, 2026

Report: How AI Is Reshaping Fleet and Field Service Operations

AI is moving beyond the back office and into the driver’s seat of work truck and field service operations. New research shows fleets are using AI to improve predictive maintenance, optimize dispatch and routing, reduce downtime, and boost technician productivity, while also tackling challenges around workforce adoption and data readiness. Discover the trends, technologies, and real-world use cases shaping the future of connected work truck fleets.

Read More →
Ad Loading...
SafetyFebruary 4, 2026

Five Ways Seat Belts Help Prevent Injuries

There are five ways seat belts protect occupants from injuries, according to the Tennessee Department of Safety and Homeland Security.

Read More →
SponsoredJanuary 14, 2026

It’s here: The 2026 Fleet Technology Trends Report

What does AI mean for fleets? Get the answer — and learn other top tech trends.

Read More →
Wreaths Across America graphic highlighting the role of small fleets in delivering wreaths to honor veterans, featuring wreath icons and the American flag.
Small Fleetby Lauren FletcherDecember 8, 2025

Small Fleets, Big Impact: How Independent Drivers Power Wreaths Across America

Check out how small fleets and independent drivers power Wreaths Across America each December and why their impact matters more than ever.

Read More →
Ad Loading...
A stressed person covers their face, illustrating that 65% of small fleet managers handle all operations alone, according to a Vehicle Management Systems (VMS) survey.
Small Fleetby StaffNovember 12, 2025

VMS Survey Finds 65% of Small Fleet Managers Run Operations Alone

A new VMS survey shows small fleet managers are stretched thin, with most handling operations solo and eager to adopt digital tools for relief.

Read More →
Safe Driving on Halloween over spooky fall road
Safetyby StaffOctober 20, 2025

Tips for Driving Safely on Halloween Night

This video features a reminder from the Connecticut Department of Transportation (DOT) and the Connecticut Police Chiefs Association, urging drivers to prioritize safety this Halloween.

Read More →
VMS Co-CEO David Prusinski highlights the company’s AI-powered virtual fleet manager designed to improve uptime and reduce operating costs for fleets.
Green Fleetby Lauren FletcherOctober 6, 2025

AI, Access, and Uptime: VMS’s Next Chapter with David Prusinski

VMS’s new Co-CEO, David Prusinski, shares how an AI-first approach will give small fleets and repair shops the tools to compete like big players.

Read More →
Ad Loading...
Photo of tire tracks and winter scenes.
Small FleetMay 24, 2025

Fleet Managers Share Winter Prep Tips: It's Never Too Early!

Three fleets share best practices to prep vehicles for winter and prevent downtime when the cold sets in.

Read More →