Calculating Total Cost of Ownership

Calculating Total
Cost of Ownership

Value estimating tool (VET) compares machine values through life cycle

What is VET?

VET is a web-based tool that helps governmental agencies quickly and easily compare the relative value of multiple machines, taking into consideration the total cost of ownership throughout each machine's life cycle.

How can VET help my agency?

It can be used to compare multiple Cat® machines and/or compare multiple brands in the marketplace. VET can demonstrate the total value advantage of Cat machines by putting together all the cost variables, such as resale value, fuel efficiency and lower maintenance and repair costs. By understanding the true cost of ownership beyond the initial price, governmental agencies can make more informed purchase decisions. Saving money over the entire length of the ownership period demonstrates responsible stewardship of constituents’ hard-earned tax dollars.

What can I compare with VET?

VET can be as simple or as sophisticated as you want. You can have as few as four inputs (purchase price, fuel costs, maintenance/repair costs and resale value) or also add comparisons of productivity costs. You’ll quickly receive easy-to-understand reports at the press of a button with VET.

Whether your focus is cost per hour or cost per unit of production, you will see exactly how Cat products can save you — and your taxpayers — more money. You can even compare the value of items beyond the machine specs, such as Equipment Protection Plans, Customer Value Agreements and Cat Technology Solutions.


“You’ll quickly receive easy-to-understand reports at the press of a button with VET. Whether your focus is cost per hour or cost per unit of production, you will see exactly how Cat products can save you — and your taxpayers — more money.”

– Wade Porter, VET Value Consultant


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