Total cost of ownership, or TCO, is the purchase price of an asset plus its costs of operation, according to Investopedia. It's a more holistic way of looking at what a product actually costs you. When you're choosing among things you might buy — such as a vehicle — you look not just at the price (the short-term cost) but also the cost to operate it (the long-term cost). In the final analysis, the asset with lower total cost of ownership is the better value. Edmunds applies this concept to car shopping with its True Cost to Own (TCO) pricing system. It essentially is a long-term car cost calculator that does all the work for you. Learn more