Use this vehicle research tool to compare lifecycle costs and fleet incentives by model & class
Carbon Emissions Vs. Ownership Costs: Mid-size Luxury Sedans
When comparing a vehicle’s carbon emissions and its total cost of ownership, which vehicles and powertrain types offer the maximum benefit for the money? [Part 4 of 5]

For the mid-size luxury sedan segment, the switch to BEV comes at an average cost savings, not a premium.
Photo: BBM
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:

The standouts in this category in overall TCO are models with the lowest initial cost, including Volvo S60 and Cadillac CT5.
Source: BBM
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.

In this category, five-year TCO for BEVs beats or is in line with that of many popular luxury ICE sedans.
Source: BBM
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.
More Vehicle Research

Why Fleet Management Looks Different in 2026 | AF News Recap
Here’s how rebranding, data strategy, and decades of industry evolution are reshaping fleet leadership.
Read More →
Turning Connected Vehicle Data Into Decisions That Matter
Fleet leaders have more data than ever, but turning that data into clear, actionable decisions remains a challenge. This white paper shows how leading organizations are using connected vehicle data to improve safety, reduce costs, and optimize fleet performance. Learn how to turn insight into action across your fleet.
Read More →Are You Tracking Your Fleet's True Total Cost of Ownership?
Bobit Business Media surveyed 190 fleet professionals and found that while most fleets are tracking costs, fragmented systems and data gaps are keeping true TCO visibility out of reach. With rising pressure to control spend in an increasingly volatile environment, the gap between what fleets think they know and what the data actually shows is wider than you might expect. See how your peers are managing costs today and where the industry still has room to improve.
Read More →
Emkay Through the Years: 80 Years of Innovation & Partnership
From vintage office photos and early dealership roots to modern fleet technology and an 80th anniversary celebration, this gallery traces Emkay's journey across generations.
Read More →
Volvo, Google Preview AI-Powered In-Car Navigation Features
Gemini integration and new Google Maps immersive navigation tools are slated for upcoming Volvo EV models, including the EX60.
Read More →
Automotive Fleet Hall of Fame Inductee Ray Breault Passes at 95
Ray Breault, a former NAFA president and longtime fleet leader whose career spanned nearly 60 years, died May 1 at age 95. Breault was inducted into the Automotive Fleet Hall of Fame in 2008 and was widely recognized for his contributions to the fleet management profession.
Read More →
The 2027 Volkswagen Lineup
Volkswagen recently released details on the 2027 lineup, which includes a variety of new features for the vehicles.
Read More →
2026 Kia EV6 Arrives With Lower Pricing, New Charging Features
Kia lowered pricing for the 2026 EV6 lineup while adding standard charging equipment, Plug & Charge capability, and updated color options.
Read More →
2027 BMW iX3 Starts at $61,500 With Up to 434 Miles of Range
BMW priced the 2027 iX3 50 xDrive at $61,500 and said the new EV SUV will offer up to 434 miles of range, 800V fast charging, and a new-generation operating system when deliveries begin in September.
Read More →
How Fleets Are Doing More with Less in 2026 | AF News Recap
In this news recap, host Faith Howell covers the ethics of AI, replacement delays, and how one company is streamlining uptime.
Read More →