For most corporate fleet managers, balancing sustainability initiatives while keeping fleet costs in check is a top priority. Yet sourcing vehicles’ carbon emissions, matching them to vehicle routes, defining ownership costs, and then performing the cost-benefit analysis is a time and resource-consuming endeavor. 

This study may help overcome these initial hurdles. We asked the lifecycle cost experts at Vincentric to provide total cost of ownership (TCO) data for 2024 model-year vehicles driven 20,000 miles per year for five years in these categories: half-ton pickups, cargo vans, passenger cars, compact SUVs, and luxury vehicles. 

The resulting list produced close to 1,300 total vehicle configurations with gas and diesel (ICE), battery electric (BEV), hybrid electric (HEV), and plug-in hybrid electric (PHEV) powertrains.

As usual, Vincentric calculated its standard eight cost elements: depreciation, financing, fees and taxes, fuel, insurance, maintenance, opportunity cost, and repairs. This time, Vincentric also provided annual in-use carbon (CO2) emissions for each vehicle. 

We divided the analysis by segment. We’ve already published results for compact SUVs, pickups, and cargo vans. We now turn to mid-size luxury sedans. But first: 

How Emissions Are Calculated

Vincentric broke out four sets of CO2 emissions by metric tons per year: 

• Electric generated (BEVs and PHEVs): Defined by the amount of CO2 emissions produced by power plants needed to power these vehicles.

• Tank-to-wheel (ICE & HEV): Defined by the amount of CO2 emissions produced from burning fuel within a vehicle while the vehicle is in motion.

• Well-to-tank (ICE & HEV): CO2 emissions produced from extracting, refining, and delivering fuel to the vehicle. 

• Annual in-use CO2 emissions: Totals the above three values for all vehicles in a single value demonstrating the yearly release of CO2 and Nitrous Oxide. 

With this data, Automotive Fleet calculated the average annual in-use CO2 emissions and TCO for every vehicle configuration, sorted by vehicle segment. We then calculated the average percentage improvement in CO2 emissions when switching from an ICE engine to a BEV, HEV, BEV, or PHEV. (Note: for BEVs, the analysis does not include charging infrastructure costs.) 

AF also included the top 5 TCO performers in each segment.

On to the analysis of the mid-size luxury sedans category: 

Mid-size Luxury Sedans

The luxury segment, from compact luxury and mid-size SUVs to mid-size and large sedans, offers multiple ICE and BEV models and configurations. For this analysis, we stuck to mid-size luxury sedans. 

While this segment serves a smaller fleet audience, the switch to BEV comes at an average cost savings, not a premium. This is partly driven by the luxury segment’s higher depreciation rates and fuel costs. When switching to BEVs, the fuel/power savings are greater than in non-luxury categories, and the depreciation isn’t as steep. 

From a TCO standpoint, the segment is skewed by the immense gulf between the lowest-priced models, such as the Audi A3 and Cadillac CT4 (invoice below $40k) and the Mercedes-Benz S Class and BMW 7 Series (invoice above $115k). 

ICE: 90 configurations

• 5-Yr TCO Average: $103,933

• Average yearly CO2 output (metric tons): 6.41

The TCO standouts in this segment are models with lower initial costs. Audi A3 and Cadillac CT4 models dominate, followed by Volvo S60 and BMW 3 Series configurations. 

BEV: 13 configurations

• 5-Yr TCO Average: $101,382

• Average yearly CO2 output (metric tons): 2.76

• Average yearly premium BEV over ICE: -$2,551

• Average yearly CO2 savings by switching from ICE to HEV: 57%

Polestar 2, BMW i4, and BMW i5 won the TCO prize in the BEV segment. Their five-year TCO beats or is in line with that of many popular luxury ICE sedans.

Notes & Cautions

This analysis is meant to be directional only. It does not account for nuances in the capacities and capabilities of individual models within a segment. 

The overall list includes manufacturers that don’t have a formal fleet program. They were included in the averages but not in our top 5 lists.   

Often, one model dominates the top 5 TCO list. We point these cases out in the text. For the list, we include the top model’s best TCO configuration and move on to the next best-performing model.