How much will your car really cost?
it looks great in the showroom. And you figured out you can afford the payments.
But how much cash will it cost over the long haul?
expenses such as gas and insurance can make a big difference after you take your
four-wheeled baby home. Depreciation, a measure of how well the car does or doesn't
hold its value, could cost you thousands at trade-in time.
at Edmunds.com calculated the cost of ownership for a slate of 2007 models. The
formula factors in the average sales price and financing rates, plus the cost
of typical ownership for five years, taking into account gas mileage, insurance,
taxes, maintenance, repairs and depreciation.
|10 least expensive 2007 cars to own|
|1. Chevrolet Aveo||$29,362|
|2. Honda Fit ||$29,914|
|3. Honda Civic||$30,107|
|4. Toyota Yaris||$30,257|
|5. Hyundai Accent||$30,386|
|6. Nissan Versa||$30,791|
|7. Kia Rio||$30,984|
|8. Toyota Corolla||$31,269|
|9. Mazda 3||$32,100|
|10. Jeep Patriot||$32,544|
Courtesy of Edmunds.com, 2007|
The least expensive
vehicle to drive? Chevrolet's Aveo, with a five-year ownership price tag of $29,362.
"It's so inexpensive, it's close to being the cheapest car you can buy,"
says Philip Reed, consumer advice editor of Edmunds.com. "And the related
expenses are also fairly low."
The Honda Fit came in second,
costing $552 more than the Chevy over five years. But it was a different set of
criteria that put the Fit on the list, says Reed. "The purchase price was
a little higher, but the depreciation was so low," he says.
the other end of the spectrum, the most expensive to own was the two-door Mercedes
SL-Class, with a five-year tab of $220,671, according to the analysts. "The
primary cost associated with the over five years is depreciation," says Alex
Rosten, industry analyst for Edmunds.com's Auto Observer. And a price
tag of $95,000 to $187,000 new is a big factor, too, he says.
Mercedes-Benz, the four-door S-Class, came in second with a five-year ownership
cost of $215,593. Same reasons, says Rosten. The cost ranges from $85,000 to $181,000
new, "and there isn't that much of a market for $80,000 or $90,000 used luxury
vehicles," he says.
a car pricey?
A lot of factors determine whether a car is expensive
or inexpensive to own.
Depreciation is a huge part of the "true
cost" of ownership. If you plan to sell it, says Rosten, you need to look
at what the car will be worth five years from now.
August 1, 2007 |