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| Image by Fastcoolcars.com |
Have you ever wondered which car is the cheapest car to drive. Well you might think hey my car only cost me 15K so that price is pretty cheap, but you need to look at more than just the price of the car. Fuel is a big component of how much your car will cost you over time, in addition to a few other fees. I will provide you with a list of cars that won the cheapest award in every category.
This current list of cars is being provided by Kelley Blue Book Value. I always was curious to find out which cars after 5 years of owning them are cheaper when compared to other cars in their class. What are the fees associated with this 5 year auto expense figure? See the list below:
Fees by %:
Fuel – 26%
Maintenance- 5%
Insurance- 9%
Financing – 6% (If you didn’t pay cash for it)
Repairs- 4%
State Fees-6%
Depreciation- 44%
So these are the average fees for every car owner and the biggest piece of the pie is depreciation. The standard definition for depreciation is – how well the vehicle holds its value over time. In the examples listed below, the depreciation was calculated by taking the gap between what you paid for a car and what it’s worth in 5 years. Example Car price is 20K but after 5 years it’s worth 10K then the difference is 10K. Then that 10K is added to all the other costs listed above like fuel over 5 years. Thus giving you the grand total of what a car costs you after 5 years. Then to break it down further you can divide that by the amount of miles you drive giving you what your car costs you per mile. Hope you are not confused, and if you are read it again and go to the KBB website for some excellent pictures and graphs on each car listed below.
The 5 year cost to own list in every category:
Sub Compact Car: 2012 Nissan Versa S- $29,763.00
Compact Car: 2012 KIA Soul- $30,924.00
Mid Size Car: 2012 Honda Accord – $37,529.00
Entry Level Luxury: 2012 Lexus CT 200H – $39,212.00
Mid-Size SUV: 2012 Jeep Wrangler Sport- $40,036.00
Minivan: 2012 Mazda 5 Sport- $40,538.00
Sports Car: 2012 Mazda Miata MX5 Sport -$42,524.00
Full Size Car: 2012 Ford Taurus SE – $46,876.00
Luxury Car: 2012 Audi A5 2.0T Quattro Premium – $57,559.00
Full Size SUV: 2012 Toyota Sequioa SE- $59,984.00
What do you think about the fees for all the categories? Given the fact that these cars are considered the cheapest in each car class. I left out pick up trucks as I feel they are mostly used as business vehicles. I am surprised because I didn’t expect the fees to be almost as high as the total purchase price of a new car. For example the subcompact car winner costs about 12 thousand dollars brand new, but the 5 year cost to own is almost triple the purchase price. That is just ridiculous. I think situations might vary as you might drive less than the next person, but remember that these figures are based on tests and statistical facts being done for each category.
A month ago I wrote a post on a future car purchase for me The Mazda 3, do you want to know what the 5 year cost to own is on that car? The magic figure is $34,403.00 with a purchase price of about 18K. The grand total is basically double the amount of the new car price, wow. I think this just makes my decision that much more difficult. So given the facts of how these fees work and how they can affect your bottom line. Do some research before buying any new car, and take into consideration how well it will do in this 5 year cost to own test.
RichUncle EL
Image above is the Ford GT and it’s 5 year costs is probably 200 thousand dollars.
The price you negotiate for a car and the interest you pay on the car loan are only part of the cost equation. Insurance, depreciation, taxes and fees, what you pay over the years for fuel, service and repairs are all important ingredients in the cost of ownership. Even the opportunity cost of your out-of-pocket costs what you’d make if you invested the money elsewhere, is part of the overall tally.
I agree with all of these Jack, thanks for the comment. WHat kind of car you own.