Vehicle Life cycle Costing Tool Explainer

NTEA's Vehicle Life Cycle Cost Tool - designed to be flexible and user-friendly to accommodate a variety of truck life cycle analysis needs and different fleet structures - is a cloud-based resource enabling fleets, engineers and sales representatives to load differing depreciation methodologies (such as straight-line, accelerated and pool depreciation techniques), fuel types and regional fuel prices to fit the necessary truck or fleet analysis. Users can also incorporate the impact of income taxes into business decisions, where appropriate, and perform what-if scenarios. Depending on needs, the template can support single-vehicle comparison decisions, vehicle class analysis and whole fleet calculations. It can also act as a forecast tool when paired with a price sensitivity analysis — often necessary when dealing with volatile fuel price scenarios. Learn more at http://www.ntea.com/lifecycle

1. What is life cycle costing? A fundamental part of understanding the value a work truck brings to your business Critical when Conducting strategic planning for fleet assets Evaluating fleet acquisition and disposition actions Considering a new acquisition Scenario planning when comparing alternative vehicle selections Comparing multiple options to support your vehicle needs Making capital allocation decisions between fleet asset classes ntea.com/lifecycle

2. What is the online tool? Supports evaluation of multiple strategic or operational alternatives in a quick, comprehensive approach Replaces CD version (formerly available on Shop NTEA) Designed to be flexible and fit a wide variety of fleet types and accounting approaches Enables you to conduct analysis tailored to your fleet needs ntea.com/lifecycle

3. What is the online tool? Calculates annual cash flow, total cash flow and net present value of the various cost and revenue streams associated with ownership of a vehicle asset across the total life of the asset at any given internal rate of return Follows generally accepted accounting principles Aligns with International Accounting Standards Board standards ntea.com/lifecycle

4. How do you access this tool? Free NTEA member benefit (login required) — not available for public purchase Must have (or create) an ntea.com account Get details at ntea.com/lifecycle ntea.com/lifecycle

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27. About NTEA Established in 1964, NTEA – The Work Truck Association , a 501(c)(6) organization, represents more than 2,100 companies that manufacture, distribute, install, sell and repair commercial vehicles, truck bodies, truck equipment, trailers and accessories. Buyers of work trucks and the major commercial truck chassis manufacturers also belong to NTEA. ntea.com/lifecycle

28. About NTEA (Cont’d) The Association provides in-depth technical information, education, and member programs and services, and produces Work Truck Week ® , Green Truck Summit, Commercial Vehicle Upfitting Summit and Executive Leadership Summit. The Association maintains its administrative headquarters in suburban Detroit and government relations offices in Washington, DC, and Ottawa, Ontario, Canada.  ntea.com/lifecycle