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Lifetime Cost

The total lifetime cost of an item accounts for maintenance fees over the useful lifespan of a product in addition to the upfront price.


Consider a $30,000 car. It might need servicing every year for oil changes, brake pad replacements, cleaning, and more. Assuming the car lasts 10 years and costs $1,000 to maintain annually, the total lifetime cost of the car is $40,000.

Lifetime Cost

Cars are a product that requires extensive maintenance and thus have a lifetime cost higher than the upfront cost.

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Capital
Labor
Deposit Insurance

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