Buzz
iStockphoto/ThinkstockAside from the initial price tag, do you know the six crucial elements that influence the overall cost of owning a vehicle?After narrowing down your options to two or three cars with similar features and prices, you're still undecided. Trying to save money, you think about picking the cheapest one, but deep down, you know the choice isn't so straightforward.
Owning a car involves more than just paying its sticker price; the car with the lower initial cost could end up being more expensive in the long run. In other words, you might have the funds to buy a car, but not enough to cover its full ownership costs. This highlights the distinction between the price and total cost of ownership (TCO).
The total cost of ownership (over five years) is influenced by six factors:
- Depreciation makes up 46 percent of TCO (on average, a car loses 65 percent of its value).
- Fuel expenses add up quickly, especially for SUVs, representing 26 percent of TCO.
- Interest depends on the vehicle price but typically accounts for 12 percent of TCO in a standard five-year loan scenario (15 percent down, 6.4 percent interest).
- Insurance costs are influenced by factors like age, location, driving history, and car make, generally accounting for 11 percent.
- Maintenance and repair make up 4 percent of TCO on average.
- Sales tax typically matches the cost of maintenance and repair, based on the national average of 4.9 percent.
[Source: Consumer Reports]
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So, which cars offer the lowest cost of ownership? The answer can be complex and will vary based on your specific situation (particularly if used cars are considered), but here are some solid options from the 2010 model year, listed by MSRP and estimated five-year TCO. The list also includes the award winners in their categories for 2010:
| Make/Model | MSRP | TCO |
| Nissan Versa | $11,990 to $16,530 | $20,595 (also best compact car) |
| Toyota Yaris | $13,405 to $14,165 | $21,593 (also best subcompact car) |
| Hyundai Accent | $9,970 to $16,995 | $22,664 |
| Honda Civic | $16,255 to $23,800 | $22,779 |
| Scion xD | $15,600 | $23,330 (also best compact wagon) |
| Honda Fit | $15,700 to $17,260 | $23,336 |
| Toyota Corolla | $16,250 to $20,150 | $23,586 |
| Toyota Prius | $24,051 (also best mid-sized car) | $24,051 (also best mid-sized car) |
| Nissan Cube | $24,082 | $24,082 |
| Chevrolet Aveo5 | $24,256 | $24,256 |
[Sources: Automotive.com, Edmunds.com, IntelliChoice.com]
These cars are just the beginning. Below, you'll find a selection of low-cost vehicles categorized for easier comparison:
| Style | Make/Model | MSRP | TCO |
| Sports car | Volkswagen GTI 2.0T | $24,070 | $33,404 -- $2,658 less than similar vehicles |
| Compact pickup (2WD and 4WD) | Toyota Tacoma Regular Cab | $16,245 | $26,134 -- $4,027 less than similar vehicles |
| Convertible | MINI Cooper | $24,250 | $30,342 -- $4,515 less than similar vehicles |
| Luxury Convertible | BMW 128i | $34,200 | $45,678 -- $698 less than similar vehicles |
| Full-size | Hyundai Sonata GLS | $19,900 | $31,441 -- $2,080 less than similar vehicles |
| Luxury Car | Audi A5 2.0T Quattro | $37,200 | $46,046 -- $6,535 less than similar vehicles |
| Minivan | Mazda Mazda5 Grand Touring | $23,240 | $34,734 -- $1,123 less than similar vehicles |
| Full-size Pickup (Half Ton, 2WD and 4WD) | Toyota Tundra Regular Cab | $23,485 | $36,098 -- $2,161 less than similar vehicles |
| Full-size Pickup (3/4 Ton, 2WD) | Ford F250 Super Duty Regular Cab XL | $25,875 | $43,728 -- $143 less than similar vehicles |
| Full-size Pickup (3/4 Ton, 4WD) | Chevrolet Silverado 2500 Regular Cab LT | $33,410 | $48,136 -- $84 less than similar vehicles |
| Full-size Pickup (One Ton, 2WD): | Chevrolet Silverado 3500 Regular Cab LT | $30,200 | $47,190 -- $559 less than similar vehicles |
| Full-size SUV | Jeep Commander Limited 2WD | $40,210 | $54,037 -- $40 less than similar vehicles |
| Luxury SUV | Land Rover LR2 HSE | $35,500 | $48,518 -- $1,142 less than similar vehicles |
[Sources: Automotive.com, Edmunds.com, IntelliChoice.com]
The lists provided are approximations based on average estimates. As always, it's recommended to shop around and conduct thorough research before buying a vehicle. Edmunds.com offers a helpful TCO calculator to assist in your evaluation.
