The newly passed law, HEA 1194, is predicted to save millions of taxpayer dollars by factoring lifetime operating costs into state vehicle purchases

INDIANAPOLIS – Governor Holcomb signed into law yesterday a bill requiring the Indiana Department of Administration to apply a Total Cost of Ownership (TCO) analysis when purchasing new light-duty vehicles for their state fleet. TCO considers differences in the average cost of fueling and maintaining vehicles, allowing the state to generate significant savings over the lifespan of a vehicle compared to vehicle purchases based on sticker price alone.

Indiana joins states like Nevada and Virginia in applying this good governance measure, which a report last year from national business association Advanced Energy United found could save Indiana $62.4 million over 15 years.

“We have much more data available than just MSRP sticker price. Applying that data to save Hoosiers’ money is fiscal responsibility at its simplest,” said Advanced Energy United Managing Director Trish Demeter. “Many equivalent options like electric vehicles cost more upfront, but more than make up for it over their lifetime by being cheaper to operate and maintain.”