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Balancing Fleet Costs and Sustainability: A Total Cost of Ownership Analysis for Compact SUVs

Corporate fleet managers face the challenge of balancing sustainability initiatives with cost control, requiring complex analyses of vehicle emissions and ownership expenses. A study by Vincentric analyzed the total cost of ownership (TCO) and annual in-use CO2 emissions for 2024 model-year vehicles driven 20,000 miles per year over five years, covering gas (ICE), hybrid (HEV), plug-in hybrid (PHEV), and battery electric (BEV) powertrains.

The compact SUV segment, a corporate fleet favorite, showed significant variation in costs and emissions. ICE models averaged a five-year TCO of $71,654 with annual CO2 emissions of 8.68 metric tons. BEVs offered the greatest carbon savings (69% reduction) but had a $9,299 higher TCO than ICE vehicles. PHEVs reduced emissions by 34% but had the highest TCO premium ($9,551), while HEVs provided the best cost savings, averaging $7,185 less than ICE models and delivering a 35% emissions reduction. Despite BEVs’ superior emissions benefits, HEVs presented a cost-effective, incremental step toward fleet sustainability. The study highlights the trade-offs fleets must consider when transitioning to greener vehicles.

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