Rajeev, the owner of a micro delivery firm in Pune, was in a dilemma whether to get a new commercial vehicle, or go the second-hand route, when he was thinking of ordering a fleet expansion in early 2025. The second-hand truck was affordable to his budget, but he was afraid of surprises and problems in its performance. It was during this time that he came across a concept called Total Cost of Ownership (TCO).
The demand for used commercial trucks in India is skyrocketing due to the growing logistics and e-commerce industries. However, sellers forget that even though a truck may be small on paper, in the long run it can be too big for the pocket. Here, knowing about the cost of ownership of a used commercial truck will prove to be your biggest strength.
In any case, having the real figures will help you make a more informed decision regarding the investment.
What Makes Up the Real Cost of a Used Commercial Truck?
When you are considering buying a used commercial truck, pricing isn’t everything. Your actual expenses fall into five main areas:
1. Acquisition costs
2. Operating costs
3. Maintenance costs
4. Depreciation resale value
5. Insurance and financing
All of these costs are included in a proper analysis of the costs of a used truck. If you ignore even one of these, you will face a financial problem that will affect your profits in the long run.
Acquisition Costs: What You Really Pay Upfront
Although used trucks are initially quite affordable, their prices vary depending on the seller, its condition and model. A second hand truck bought from an authorised dealership may come with warranty, servicing and paperwork; but buying a used pickup directly from an individual may not be the same and eventually the price may go up.
By 2025, second hand model of Mahindra Bolero Pickup will sell between Rs 2.5 lakh and Rs 4 lakh depending on the model type and mileage. On the other hand, a Tata Ace or Ashok Leyland Dost may cost around Rs 1.8 to Rs 3.8 lakh. Then add RTO transfer charges, possible repairs and paperwork, then the price of your car can increase by another 10-15%.
Operating Costs in 2025: Fuel, Drivers & Downtime
Fuel is still one of the biggest costs of fleet operations. Downtime resulting from breakdowns will have the most severe impact on the operating costs of used trucks in 2025, as it is factored into drivers’ salaries, route planning, etc.
For example, if your second-hand truck has a fuel efficiency of 15 km/l and you travel 3,000 km per month, the fuel cost will be around Rs 18,800 per month at an average of Rs 94/l. That’s fuel. Add drivers’ salaries, permits, and possible fines and penalties due to late deliveries to the equation, and you get a clearer perspective.
Choose used trucks with good mileage like the Mahindra Supro Maxitruck or the Tata Intra V30 to reduce operating costs. You can also cut down on your monthly expenses by selecting the proper route, allowing less idle time, and using a global positioning system (GPS) that does tracking.
Maintenance Cost for Second-hand Trucks: What to Expect
This is where first-time truck buyers often go wrong. A rusty old truck can cost you a lot unless its maintenance records are maintained properly. This includes clutch replacement, worn tyres, engine tuning and bad suspension.
This is because the maintenance cost of second-hand trucks can vary depending on the age of the truck, distance travelled and the brand used. For light commercial vehicles, routine maintenance (usually every 5,000 to 10,000 kilometres) can cost you anywhere between Rs 1,500 and Rs 3,000 per visit. In case of major repairs, especially in the case of older trucks with no service history, it can go up to Rs 20,000 or even more.
Long term cost can be decreased majorly by adopting timely maintenance procedures like regular oil change, tyre rotation, and air filter change. Early maintenance will help you maintain both the life and performance of your truck.
Depreciation and Resale Value of Commercial Trucks
Unlike private cars, commercial trucks also depreciate based on age and usage. On average:
0-3 years: 10-15% depreciation per year
3-6 years: 20% depreciation per year
6+ years or more: Resale value decreases rapidly, unless they are in perfect condition.
The detail about the depreciation associated with commercial vehicles is beneficial in future upgrading plans of your vehicles. For example, a truck bought in 2025 worth Rs 4 lakh can be sold in 2028 for Rs 2.5 lakh if well maintained.
Trucks from popular brands like Mahindra, Tata or Ashok Leyland that are well cared will hold their value better. By 2025, online resale markets and its consumer markets in tier-2 and tier-3 cities are improving the resale value of commercial trucks, providing more exit options to the buyer.
Insurance and Financing for Old Trucks
Insurance of old commercial trucks is mandatory and is usually less expensive than new trucks. However, unless upgraded, the coverage will be less. A simple third-party coverage will be around ₹6,000-8,000 per year and comprehensive coverage could even be ₹12,000 per year.
By the year 2025, financing for used commercial truck will become easier. Digital lending facilities and non-banking financial companies offer:
· Loans up to 80 percent of the vehicle value
· Tenure that can vary between 12 to 60 months
· Competitive interest rates of 10-16%
Try to calculate your EMI, insurance and maintenance charges to know the actual monthly liability; only then sign the deal.
Real Cost Analysis: Used Truck vs. New Truck in 2025
To cost analysis of used trucks in comparison to new trucks, let us take a comparative look:
| Cost Component | New Truck | Used Truck |
| Acquisition Cost | ₹6–7 lakh | ₹2.5–4 lakh |
| Insurance (Annual) | ₹20,000 | ₹8,000 |
| Fuel (Monthly) | ₹20,000 | ₹18,800 |
| Maintenance (Annual) | ₹12,000 | ₹18,000 |
| 3-Year Depreciation | 40% | 25% |
As mentioned above, older trucks are better because of their lower initial cost and lower depreciation rate. But they require sensible maintenance to be profitable. This kind of cost analysis will also break down the cost of your investment, letting you know how to evaluate the vehicle based on its actual value rather than its current cost.
Expert Tips to Minimise TCO When Buying Used Trucks
Here are some tips that experienced fleet managers swear by:
• Buy authorised pre-owned from authorised dealers
• use telematics to monitor fuel and driver behaviour,
• Preventive maintenance at 8,000 km intervals
• Negotiate cheaper insurance coverage
• Maintain good inventory to increase resale in future
• Choose fuel-efficient models to reduce operating costs
• Check brakes, tyres and suspension regularly for maximum safety
And maybe you should download our Used Truck TCO Checklist to see how to do the assessment step by step.
Conclusion Make Informed Moves, Not Expensive Mistakes
The total cost of owning a used commercial truck in India is far higher than the cost of purchasing it. When Rajeev used these TCO principles, he actually purchased a full-service certified 2021 Mahindra Supro Maxitruck. After a year, his maintenance costs were reduced by 30 percent and fuel efficiency also increased.
By paying attention to the sticker price alone, you can make informed purchasing decisions and avoid many of the pitfalls that eat away at the profits of your operations.Once you decide to buy a truck or add more vehicles to your fleet, it is wise to inform yourself about the used commercial truck ownership cost in 2025.
