Cars With The Best Total Cost of Ownership
When you are looking for a car, you often think about price and what you can do to get the best price now. But have you ever thought about how much your car will cost you over the next 5 years? How do you even figure out how much your car really costs you? One way to find out is to use websites like KBB.Com. Kelly Blue Book (KBB) does a study and gives awards each year to vehicles that offer the lowest overall total cost to own over 5 years.
In this post written by Jack R. Nerad, Executive Editorial Director, Kelley Blue Book, he goes over why you need to look at total cost of ownership when purchasing a vehicle and lists the total cost of ownership winners for 2017!
Thank you, Jack R. Nerad, for your contribution to Esavingsblog.
There’s More to Vehicle Cost than Purchase Price
Negotiating a good price on a new car is a good first step to keeping your transportation costs at a minimum, but it won’t assure you that you’re saving all the money you can. Why? Because the purchase price is just one of the costs associated with vehicle ownership, and when you consider the continuing costs of fuel, financing, insurance and, in particular, depreciation, saving a few bucks at the beginning of your ownership stint might actually cost you more when all is said and done. What we are talking about here is “cost of ownership”, and we at Kelley Blue Book have turned analysis of vehicle ownership costs into a science.
The best expression of that science comes each year in the Kelley Blue Book 5-Year Cost to Own Awards, which honor those special vehicles that offer the lowest overall total costs over a typical ownership period. Among the factors we examine are financing, insurance, and state fees, plus the anticipated costs of fuel, scheduled maintenance, and repairs.
Then there are the critical factors of purchase price – the Kelley Blue Book® Fair Purchase Price that reflects real-world transactions — and projected depreciation, derived from our industry-standard residual value analysis.
Here is a look at the Kelley Blue Book 5-Year Cost to Own Award winners in the most popular vehicle categories:
Best Compact Car – Toyota Corolla
For the fourth year in a row, the Toyota Corolla tops all other compact cars as the least-expensive model to own over five years, but the venerable model’s reputation goes back even longer, and it boasts a track record that others could only dream about. Now celebrating its 50th anniversary, Toyota’s vaunted compact sedan has spent decades honing its mission as an affordable, economical, comfortable and easy-to-drive sedan. Those traits give it wide appeal, making it an excellent choice for drivers ranging from students to empty-nesters.
Best Midsize Car – Honda Accord
The Honda Accord is one of those rare cars that seems to do everything right. With a lineage that goes back four decades, Honda’s midsize sedan is widely regarded as the segment’s benchmark. Its recipe for success includes playful driving manners, efficient powertrains, a roomy interior and a history of reliability. Combined with a starting price of just over $23,000 and its ability to hold its value over time, the Accord boasts a lineup that spans numerous trims and models to suit a variety of tastes, from a V6 coupe to a nearly 50-mpg hybrid. Among these the most familiar and by far the best-seller is the Accord sedan, one of the best car values on the planet.
Best Subcompact SUV/Crossover – Honda HR-V
The 2017 Honda HR-V is inexpensive to purchase, great on gas, as reliable Honda’s stellar reputation and offers very good resale value. That is a recipe for low ownership costs. There’s more to the HR-V than the numbers, though. It’s surprisingly roomy inside, offering plenty of space for front and rear passengers plus their stuff in the generous cargo area. And that cargo area can be expanded quickly thanks to the clever way the rear seats flip and fold. Around town, the HR-V is easy to drive due to its small size and ingenious features like LaneWatch, which uses a camera to show you what the typical side-view mirror can’t, just another winning feature.
Best Compact SUV/Crossover – Subaru Crosstrek
The 2017 Subaru Crosstrek is a sporty compact crossover that is also a suitable station wagon alternative and a fine choice for those who enjoy the great outdoors. If you want the all-weather confidence all-wheel drive provides and like the idea of a roomy, pet-friendly space that’s easy to wash out after a camping trip, you’re ready to fall in love with the Crosstrek. Based on the tried-and-true Subaru Impreza compact car, Subaru’s compact SUV offers added ride height in addition to a versatile interior that offers up to 52 cubic feet of cargo space behind the front seats. With a base price starting below $23,000, it comes equipped with all-wheel drive, extensive safety equipment, Bluetooth, cruise control and a rearview camera. More value awaits at the gas station, where with the optional automatic transmission you can get 33 highway mpg and enjoy a range of up to 461 miles on a tank of gas.
Best Midsize SUV/Crossover – Jeep Wrangler Unlimited
This is the third year in a row that the Jeep Wrangler Unlimited takes home Kelley Blue Book’s 5-Year Cost to Own Award in the hotly contested midsize SUV class. It is also one of the most venerated models in the country, an authentic American original. While boasting niceties that have enhanced its stature as an “everyday driver,” the 2017 Jeep Wrangler continues to deliver exceptional off-road capability in an affordable package. Its unmistakable blocky stance, high ground clearance, low overhangs and heavy-duty, get-er-climbed underpinnings set it apart from other vehicles in its class. The four-door Unlimited, which costs about $3,000 more than a two-door Jeep Wrangler, is certainly the wise choice with a base price around $28,000.
So there you have it! Were any of these vehicles on your list? Do you think about total cost of ownership when you are purchasing a car? Let me know your thoughts in the comments below.