ANL/ESD-21/4 Comprehensive Total Cost of Ownership Quantification for Vehicles with Different Size Classes and Powertrains Energy Systems Division About Argonne National Laboratory Argonne is a U.S. Department of Energy laboratory managed by UChicago Argonne, LLC under contract DE-AC02-06CH11357. The Laboratory’s main facility is outside Chicago, at 9700 South Cass Avenue, Lemont, Illinois 60439. For information about Argonne and its pioneering science and technology programs, see www.anl.gov. DOCUMENT AVAILABILITY Online Access: U.S. Department of Energy (DOE) reports produced after 1991 and a growing number of pre-1991 documents are available free at OSTI.GOV (http://www.osti.gov/), a service of the US Dept. of Energy’s Office of Scientific and Technical Information. 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ANL/ESD-21/4 Comprehensive Total Cost of Ownership Quantification for Vehicles with Different Size Classes and Powertrains by Andrew Burnham1, David Gohlke1, Luke Rush1, Thomas Stephens1, Yan Zhou1, Mark A. Delucchi2, Alicia Birky3, Chad Hunter3, Zhenhong Lin4, Shiqi Ou4, Fei Xie4, Camron Proctor5, Steven Wiryadinata5, Nawei Liu6, and Madhur Boloor7 1 Energy Systems Division, Argonne National Laboratory 2 Lawrence Berkeley National Laboratory 3 National Renewable Energy Laboratory 4 Oak Ridge National Laboratory 5 Sandia National Laboratories 6 University of Tennessee 7 U.S. Department of Energy, Vehicle Technologies Office April 2021 Erratum to accompany “Comprehensive Total Cost of Ownership Quantification for Vehicles with Different Size Classes and Powertrains” (Argonne National Laboratory report ANL/ESD-21/4) July 2021 After initial publication of this report, the authors were made aware of some minor typographical errors and omissions. As these mistakes can potentially confuse the results, they have been corrected in the present version. In the executive summary on page xxiii, “HEV” (hybrid electric vehicle) was once written as “BEV” (battery electric vehicle), contrary to the findings shown in the accompanying figure. Tables B.5 and B.6 previously stated the incorrect all-electric ranges for the battery electric vehicle and plug-in hybrid electric vehicle for the class 8 day cab tractor and class 4 delivery truck, respectively. These ranges have been corrected. Additionally, two sentences were added to Appendix B on page 143 to explicitly state the correctly modeled all-electric range for all medium- and heavy-duty vehicles. Several stakeholders have been added explicitly to the acknowledgments section. CONTENTS ACKNOWLEDGMENTS ............................................................................................................ xii LIST OF ACRONYMS ............................................................................................................... xiii EXECUTIVE SUMMARY ........................................................................................................ xvii 1. INTRODUCTION ................................................................................................................... 1 2. TCO CALCULATION METHODOLOGY AND BACKGROUND ..................................... 6 2.1. Conceptual Framework for Vehicle Costs ..................................................................... 6 2.2. Review of TCO Literature .............................................................................................. 8 2.2.1. Highlights from Specific Studies ..................................................................... 10 2.3. Quantification of TCO .................................................................................................. 14 2.3.1. Financial Analysis ............................................................................................ 19 2.3.2. Analysis Timeframe and Survivability ............................................................. 23 2.3.3. Vehicle Travel and Mileage ............................................................................. 24 3. COST ELEMENT DATA AND ASSUMPTIONS ............................................................... 28 3.1. Data Source Summary .................................................................................................. 28 3.2. Vehicle .......................................................................................................................... 29 3.2.1. Vehicle Retail Prices ........................................................................................ 29 3.2.2. Vehicle Fuel Economy ..................................................................................... 35 3.2.3. Validation of Retail Price and Fuel Economy .................................................. 43 3.2.4. Vehicle Financing ............................................................................................. 46 3.2.5. Vehicle Cost / Depreciation ............................................................................. 47 3.3. Fuel Costs and Infrastructure ....................................................................................... 61 3.4. Insurance Cost .............................................................................................................. 63 3.4.1. Passenger Light-Duty Insurance ...................................................................... 63 3.4.2. Commercial Heavy-Duty and Light-Duty Insurance ....................................... 70 3.5. Maintenance and Repair Costs ..................................................................................... 71 3.5.1. Annual M&R Costs, LDV ................................................................................ 72 3.5.2. Per-Mile M&R Costs, LDV ............................................................................. 76 3.5.3. Maintenance Costs by Service Schedule, LDV ................................................ 81 3.5.4. Repair Costs, LDV ........................................................................................... 86 3.5.5. Maintenance and Repair Costs, MHDV ........................................................... 90 3.6. Taxes and Fees ............................................................................................................. 92 3.6.1. Taxes and Fees, LDV ....................................................................................... 93 3.6.2. Taxes and Fees, MHDV ................................................................................... 95 3.7. Costs and Considerations Specific to Commercial Vehicles ....................................... 95 3.7.1. Summary of Qualitative Workshop Findings ................................................... 96 3.7.2. Commercial Vehicle Priorities ......................................................................... 99 3.7.3. Key Cost Elements ......................................................................................... 101 4. RESULTS ............................................................................................................................ 108 4.1. Base Case ................................................................................................................... 108 4.2. Side Cases................................................................................................................... 114 iii CONTENTS (CONT.) 4.2.1. Vehicle Technology Advancement ................................................................ 114 4.2.2. Current Vehicles ............................................................................................. 115 4.2.3. Vehicle Ownership Period.............................................................................. 116 4.2.4. Component Replacement ............................................................................... 117 4.2.5. Taxi Cabs ........................................................................................................ 118 4.2.6. Labor costs while Fueling .............................................................................