The complete guide to calculating the Total Cost of Ownership (TCO) for a vehicle fleet in Saudi Arabia 2026

• Helps in making smarter purchasing decisions. • Reveals hidden costs that don't appear in the budget. • Highlights the difference between fuel-efficient cars and high-fuel-consumption cars. • Contributes to improved long-term financial planning.

1. Purchase Price and Depreciation • The purchase price is the starting point, but not the final price. • Commercial vehicles depreciate between 15-20% of their value annually, depending on usage. • For example, a pickup truck that costs SAR 100,000 might sell for only SAR 40,000 after 5 years. 2. Fuel Costs • Fuel prices in Saudi Arabia (2026). • The difference between a vehicle that consumes 10 liters/100 km and one that consumes 15 liters/100 km can reach SAR 50,000 annually for a fleet of 20 vehicles. 3. Insurance • The average cost of commercial car insurance in Saudi Arabia is SAR 3,500-5,000 annually. • Group fleet insurance offers discounts of up to 20%. 4. Resale Value • Vehicles specially equipped for fleets retain 15-20% more value than unequipped vehicles. • This means that investing in appropriate equipment increases resale value.

Item | Annual Cost per Car | Total Cost (10 Cars) Purchase Price and Depreciation | SAR 25,000 | SAR 250,000 Fuel (15 L/100 km x 30,000 km) | SAR 31,000 | SAR 310,000 Insurance | SAR 4,000 | SAR 40,000 Downtime | SAR 5,000 | SAR 50,000 Annual Total | SAR 65,000 | SAR 650,000

Even without maintenance or funding, there are indirect costs that must be accounted for: • Downtime: Every hour of downtime can cost the company 500-1000 riyals. • Reputational damage: Delayed deliveries or damaged goods can lead to the loss of long-term contracts. • Opportunity cost: A broken-down vehicle means a loss of the ability to fulfill new orders.

• Vehicles equipped with thermal insulation and interior partitions to minimize breakdowns and protect goods. • Direct purchase options with no extra fees or intermediaries. • Higher resale value thanks to customized features. • Fast delivery network covering most regions of the Kingdom.

A delivery company in Jeddah operated a fleet of 15 older vehicles: • Fuel consumption: 15 liters/100 km. • Annual fuel cost: 450,000 riyals. • Resale value after 5 years: Only 20% of the original price.

• Fuel consumption has decreased to 10 liters/100 km. • Annual savings: SAR 150,000. • Resale value has increased to 40% of the original price.

Calculating the Total Cost of Ownership (TCO) is key to understanding the true cost of your company's fleet. Focusing solely on the purchase price is a financial trap that leads to significant long-term losses. With Al Masdar Automotive's solutions, you can substantially reduce your TCO, increase operational efficiency, and ensure your budget is invested in growth, not breakdowns.