Kelley Blue Book Picks: Cars with Lowest Ownership Costs
As every car owners knows, the price you pay at the dealership is only the beginning of your costs. It all adds up -- from the high price of gas to maintenance costs, as well as the the depreciation when you want to sell or trade the car.
Now Kelley Blue Book has picked the brands with the lowest total cost of ownership. Audi, Lexus and Cadillac top the luxury listings, while Kia, Hyundai and Honda lead all mainstream brands for lowest cost over five years. That total includes the original purchase price as well as projections for fuel costs, depreciation, insurance, maintenance and repairs.
Kelley's web site also gives such total cost figures for individual models being researched by shoppers.
The top brands in these listings won for a variety of reasons. "Audi and Lexus currently have the lowest depreciation and best fuel economy among luxury brands," the Kelley analysts note. One example: The Audi A3 (right), which starts at $27,270, has a mileage rating of 21 MPG city/30 highway and has strong resale value.
All three of the top brands have entry-level models with lower list prices -- by luxury standards, at least. In addition, Cadillac offers buyers free maintenance for the first four years or 50,000 miles. (See U.S. Luxury Brands Offer Free Maintenance.)
Korean corporate siblings Kia and Hyundai won for strong fuel economy and low selling price. For instance, the just-redesigned Hyundai Accent (left), rated at 40 MPG on the highway (30 MPG city), starts at $12,445. (See Test Drive: 2012 Hyundai Accent). Honda achieved its rank in part by being a perennial leader in resale value, finishing second only to Subaru in the most recent resale rankings from Kelley.
Cadillac was the only U.S. brand Kelley highlighted for low ownership cost, although some U.S. models showed up well in Kelley's earlier ranking on "best resale value." The Ford F-150 pickup, Taurus and Mustang and the GMC Acadia, a large SUV, all won their categories.
Total ownership costs as calculated by Kelley Blue Book and competitor Edmunds.com can be useful in comparing models you might buy. But they are broad averages for your region. In doing your auto budgeting, consider these factors:
- Resale value: If you expect to sell or trade your car in five years or less, depreciation matters a lot. But if you are the frugal sort who will likely keep that car as long as it runs well, then depreciation is less of an issue. Decide how much it matters to you.
- Insurance costs: Check costs carefully. Insurance premiums vary widely with your city, neighborhood and even your credit rating. First-time buyers of luxury brands can be startled especially at what their insurance costs if they have not done their homework carefully.
Photos courtesy of the manufacturers
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