School transportation budgets don’t fail because people mismanage them. They fail because the purchase price only tells a small part of the story. A bus that looks affordable in August becomes a financial drag by February if you didn’t plan for fuel swings, insurance jumps, labor pressure, or a maintenance cycle that doesn’t match your duty profile.

Districts know this. The challenge is getting board members, finance officers, and community groups to understand the full picture. This articleguide breaks down every major cost bucket, shows how they stack up over five and ten years, and gives you practical numbers you can use during planning sessions.

Data in this guide comes from School Bus Fleet, NASDPTS, the National Highway Traffic Safety Administration (NHTSA), National Association of Insurance Commissioners (NAIC), American Bus Association (ABA), EPA, and the U.S. Department of Energy’s AFLEET tool. All cost ranges reflect national averages and the standard swing you see between states.

1. Purchase Price and Depreciation

A new school bus costs more now than at any point in history. There’s no way around that.

Current ranges:

• Type A (mini): 90,000–125,000
• Type C (conventional): 140,000–200,000
• Type D (transit-style): 200,000–260,000
• Electric: 350,000–420,000

Source: School Bus Fleet 2024–2025 OEM pricing surveys; NTEA Commercial Vehicle Outlook.

Electric pricing remains volatile because battery pack costs fluctuate. Districts buying through grants often see lower effective cost, but the sticker price is still high.

Depreciation is where districts underestimate impact.

A typical district sees:

• 7–12 percent drop in year one
• 5–8 percent per year after
• Stronger depreciation on gasoline units
• Better retention on diesel Type C and Type D platforms

A well-kept diesel bus still holds 20–30 percent of its value after ten years. Gasoline units fall closer to 10–20 percent. Where things fall apart is when a district stops documenting maintenance. Poor recordkeeping erases resale value faster than miles.

 

2. Fuel and Energy Costs

The big variable for electric is infrastructure. Charging upgrades add significant cost in Year One. For this reason, the TCO advantage of electric only shows up in districts with stable grant funding or high operational density. Currently, that funding has mostly dried up nation-wide.

 

3. Maintenance and Repairs

Insurers pay close attention to how well a fleet is maintained. Strong PM records lower risk and usually lead to better rates because they show fewer roadside failures, cleaner safety files, and a lower chance of high-severity claims. Fleets with inconsistent PM schedules tend to face higher premiums, more inspections, and tighter underwriting.

Maintenance is where the wrong fleet plan gets exposed.

Annual averages most districts report:

• Diesel Type C: 5,000–8,000
• Gas Type C: 4,000–6,000
• Propane: 3,000–5,000
• Electric: 2,000–4,000 (requires far fewer moving parts; battery cooling systems still need annual service)

Source: School Bus Fleet Maintenance Cost Index 2023–2025; Fleet Maintenance Magazine.

High-cost patterns:

• Brake systems on stop-and-go urban routes
• HVAC units in hot climates
• Rust remediation in northern states
• Sensors and electrical components on newer digital platforms

A well-run PM program increases fleet life by 5–10 years depending on climate and use. Districts with strong PM discipline often run diesel buses 15–20 years before retiring them.If you need a full breakdown of what solid upkeep looks like across a working fleet, this Complete Bus Fleet Maintenance Guide is a good reference.

 

4. Insurance

Insurance is one of the steadier line items in a school bus budget, but the spreads are wide enough to matter. Premiums rise with seating capacity, vehicle value, and route exposure. A Type C diesel in a rural district might fall near the lower end of the range, while a metro district running a Type D on high-traffic routes pays more because the liability exposure is higher.

Typical cost ranges based on recent NAIC summaries and industry reporting:

• Type C buses: 2,500–4,500 per year
• Type D buses: 3,000–5,000 per year
• EVs: often a tier higher because replacement value drives premiums

The factors that push premiums up are predictable: larger passenger counts, congested routes, night operations, high accident-rate corridors, new drivers with limited commercial experience, and higher-value equipment.

For anyone budgeting a fleet, this overview of coverage types and real-world insurance benchmarks in our 2025 Bus Insurance guide.

This guide walks through liability minimums, common exclusions, certificate requirements for contracts, and what operators can do to keep premiums from drifting upward year after year.

 

5. Driver Wages and Labor Costs

Labor is now the biggest cost in yellow bus operations.

School Bus Fleet’s 2025 wage survey reports:

• Average hourly wage: 23.18
• Wage growth: up five consecutive years
• More unionized drivers than non-union for the first time
• Overtime use rising due to staffing gaps

Most districts and private schools spend:

• 55,000–75,000 per driver per year (wages, benefits, training, onboarding)
• Higher costs in high-union or high-cost-of-living states

This is the cost bucket with the least flexibility. Labor pressure is why many districts now stretch fleet cycles or shift toward used inventory.

 

6. Compliance and Required Testing

Compliance costs don’t make headlines, but they drain time and budget.

Recurring items:

• Annual DOT inspections
• State-specific safety inspections
• Emissions testing
• Driver medical exams
• Drug and alcohol testing for CDL drivers
• Recordkeeping systems

Average annual cost: 500–1,200 per bus (varies by state).

Source: FMCSA; state DOT fee schedules.

 

7. Storage, Parking, and Facility Costs

Parking looks cheap until you price it.

National Parking Association data shows:

• Surface lot space: 1,500–3,000 per year
• Covered or secured parking: 4,000–7,500 per year
• High-density metro areas see 10,000+ per year

Districts with limited yard space pay the highest price because they lease overflow lots or rely on third-party storage.

 

8. Unexpected Repairs and Mid-Life Components

Big-ticket failures usually land between years 7 and 13.

Failing to plan for these spikes results in getting trapped in emergency purchasing cycles. This is where used inventory fills the gap: fewer surprises during replacement.

 

9. Five-Year and Ten-Year TCO Models

Based on moderate-use fleets running 12,000–15,000 miles per year.

These examples use middle-of-the-road assumptions. Costs vary by region, duty cycle, driver wages, weather, and shop capability. The goal is to give directors a realistic planning framework, not a budget template.

Sources used across models:

• School Bus Fleet (annual reports on purchase prices, maintenance averages, fuel burn, and EV operating cost trends)
• National Transit Database (fuel/energy efficiency ranges)
• NAIC (insurance cost trends)
• EPA + DOE AFLEET data (EV and diesel lifetime cost modeling)

Diesel Type C (Conventional, 71–77 passengers)

Purchase price: 140,000–190,000

Depreciation: roughly 8,000–12,000 per year

Annual maintenance: 4,000–7,000

Annual fuel: 4,000–5,500 (6–7 mpg range)

Annual insurance: 2,500–4,500

Compliance + misc: 1,200–2,000

Five-year resale value: 50,000–70,000 (condition dependent)

Five-Year Estimate

• Total operating cost: 60,000–95,000
• Depreciation over 5 years: 40,000–60,000
• Net value recovered: 50,000–70,000

Five-year TCO: roughly 150,000–185,000

Ten-Year Estimate

• Operating cost: 130,000–190,000
• Depreciation: 90,000–120,000
• Resale value: 10,000–25,000

Ten-year TCO: 210,000–295,000

 

Gasoline Type C (71–77 passengers)

Purchase price: 135,000–165,000

Depreciation: 7,500–11,000 per year

Annual maintenance: 4,500–7,500 (higher spark plug and ignition cost cycles)

Annual fuel: 5,500–7,000 (4–6 mpg range)

Annual insurance: 2,500–4,500

Compliance + misc: 1,200–2,000

Five-year resale value: 40,000–60,000

Five-Year Estimate

• Total operating cost: 70,000–110,000
• Depreciation: 38,000–55,000
• Resale value: 40,000–60,000

Five-year TCO: 155,000–195,000

Ten-Year Estimate

• Operating cost: 145,000–205,000
• Depreciation: 85,000–115,000
• Resale: 8,000–20,000

Ten-year TCO: 225,000–310,000

 

Diesel Type D (Transit, 84–90 passengers)

Purchase price: 200,000–260,000

Depreciation: 12,000–18,000 per year

Annual maintenance: 5,000–9,000

Annual fuel: 5,500–8,000 (5–6 mpg typical)

Annual insurance: 3,000–5,000

Compliance + misc: 1,500–2,500

Five-year resale value: 65,000–90,000

Five-Year Estimate

• Operating cost: 80,000–120,000
• Depreciation: 60,000–90,000
• Resale: 65,000–90,000

Five-year TCO: 185,000–240,000

Ten-Year Estimate

• Operating cost: 165,000–245,000
• Depreciation: 130,000–170,000
• Resale: 12,000–30,000

Ten-year TCO: 270,000–385,000

 

Gasoline Type D (Transit, 84–90 passengers)

Purchase price: 185,000–235,000

Depreciation: 10,000–16,000 per year

Annual maintenance: 5,500–9,500

Annual fuel: 7,000–9,500

Annual insurance: 3,000–5,000

Compliance + misc: 1,500–2,500

Five-year resale value: 50,000–75,000

Five-Year Estimate

• Operating cost: 90,000–130,000
• Depreciation: 50,000–80,000
• Resale: 50,000–75,000

Five-year TCO: 190,000–250,000

Ten-Year Estimate

• Operating cost: 180,000–260,000
• Depreciation: 105,000–150,000
• Resale: 10,000–25,000

Ten-year TCO: 295,000–405,000

 

Electric Type C (71–77 passengers)

Purchase price: 350,000–450,000 (battery is 35–40 percent of cost)

Depreciation: 20,000–35,000 per year (steeper early curve)

Annual maintenance: 2,500–4,000 (fewer moving parts)

Annual electricity: 2,200–3,200 (at approx 1.1–1.3 kWh/mile, 12–15k miles)

Annual insurance: 3,500–6,000 (higher valuation increases premiums)

Compliance + misc: 2,000–4,000

Five-year resale value: highly variable (40,000–80,000), depending on battery health and incentives

Five-Year Estimate

• Operating cost: 45,000–70,000
• Depreciation: 100,000–150,000
• Resale: 40,000–80,000

Five-year TCO: 310,000–380,000

Ten-Year Estimate

• Operating cost: 95,000–135,000
• Depreciation: 210,000–300,000
• Resale: 5,000–25,000

Ten-year TCO: 430,000–600,000

(Wide range reflects battery replacement uncertainty and evolving incentive structures.)

 

A Smarter Way to Plan the Next Ten Years

The best-run fleets build replacement decisions around real numbers, not instinct. A district with accurate TCO data avoids panic buys, manages labor pressure better, and puts every vehicle on a predictable timeline.

If your district or private school is facing rising costs or a backlog of aging buses, predictable replacement inventory helps stabilize the budget. You can review used Type A, Type C, and Type D buses, compare costs, and look at available delivery timelines at BusesForSale.com.