Total Cost of Ownership — TCO — is the only fair way to compare an EV and an internal combustion engine. The purchase price says nothing, the monthly lease price says something, but only the TCO over 4 years provides the full picture.

The seven cost items

  1. Lease or depreciation. Monthly lease amount or investment / 4 years.
  2. Energy or fuel. kWh × €/kWh or liter × €/liter.
  3. Maintenance. Servicing, tires, brake pads.
  4. Insurance. Premium depending on model and power.
  5. Tax (BIV and road tax). In Flanders €0 for pure EV in 2026.
  6. Benefit in kind. Not for the company, but relevant for the employee’s net cost.
  7. Residual value. How much the car retains after 4 years.

Calculation example: VW Passat diesel vs Tesla Model 3

Volkswagen Passat 2.0 TDI Business, €43,000 list price, 30,000 km/year:

  • Lease: €620/month × 48 = €29,760
  • Diesel: 5.8L/100 km × 1,200 km/month × €1.75 = €122/month × 48 = €5,856
  • Maintenance: €2,200 over 4 years
  • Insurance: €1,300/year × 4 = €5,200
  • Road tax: €350/year × 4 = €1,400
  • Total employer: €44,416 over 4 years

Tesla Model 3 RWD, €42,000 list price, 30,000 km/year, 70% home charging:

  • Lease: €580/month × 48 = €27,840
  • Energy: 4,500 kWh/year × (70% × €0.33 + 30% × €0.65) = €1,916/year × 4 = €7,664
  • Maintenance: €900 over 4 years (no oil changes, less brake wear)
  • Insurance: €1,450/year × 4 = €5,800
  • Road tax: €0
  • Total employer: €42,204 over 4 years

Difference: €2,212 in favor of the EV — and that is without taking into account the tax deduction, which is more favorable for EVs.

For the employee (BIK)

Passat: BIK ±€3,800/year taxable = ±€140/month net impact.
Tesla: BIK ±€1,900/year taxable = ±€70/month net impact.
The employee gains €70/month net with the EV.

The variables with the most impact

Mileage (the more you drive, the greater the EV advantage), share of home charging (low = small advantage, high = large advantage), and residual value (highly dependent on the model — some EVs depreciate faster than German premium diesels).

What is often forgotten in TCO calculations

  • One-time installation cost of a home charging station (€1,500–€2,500), but it covers 4–8 years.
  • Management platform subscription for split billing (€10–€25/month).
  • Unexpected costs (tire repair, minor damage) — equal for both types.

Read also

Would you like to calculate your own TCO? Schedule a consultation with our fleet specialist — we compare EV and diesel for your fleet, based on your actual mileage and charging profile.