Most and Least Expensive Cars to Own

Money isn't everything. But then again, a car that constantly requires you to spend money is really not worth owning.

This is true from the moment you sign the papers and become the owner of the car, until that last fateful day when you hand over the keys. The cost of ownership is made up of three key components: the purchase price, maintenance costs, and the final price you will receive for your vehicle when it is sold.

Maintenance, which is what you pay between buying and selling to keep your car on the road, is the most important component of all. Even with the same size car, the difference in maintenance costs can be striking.

We've chronicled the most common repair and maintenance needs for over 500 models available in the new and used car market, from Acuras and Audi to Volvo and Volkswagen. Quality difference.

Over 10 years of owning a Toyota Prius will likely only cost you around $4,300 in maintenance (repair and service), while a similarly sized Chrysler Sebring can cost over $17,000 in maintenance due to poor overall quality and expensive parts. . That's enough to pay for another old Prius!

The Toyota Prius doesn't have a list of parts that usually fail on a low-end car like the Chrysler Sebring. This is actually good news. Maintenance costs can be controlled by buying the right vehicles and fixing small problems before they become big ones.

We are all aging, people and machines. But we also need to make this investment in ourselves and our belongings for the long term. So which cars are the cheapest? Correct answer: It depends.

There are many total cost of ownership studies, also known as total cost of ownership studies, that focus on five-year time frames for a brand new car. The problem is that most people buy used cars at a ratio of more than 2 to 1 and then, on average, keep them for about six years after the original purchase. In fact, according to IHS Automotive, the average car on the road is 11.5 years old.

Think about it. Over 11 years is the average age of a car in the US. If you decide to buy what you like these days, chances are you can easily keep it for a much longer period of time than 11 years.

So, when you calculate your real total cost of ownership, recent research is well thought out, but it may not apply to you at all. To find the best answer to the question: “What cars are the least expensive for me?”, you need to test yourself and ask yourself some uncomfortable self-questions.

Am I a trader? Or a keeper?

There's nothing wrong with trying out a new car every few years as long as it brings joy to your life. But constant car buying also turns out to be an incredibly expensive hobby. Consumer Reports published a study showing that the average person who trades in their car after a few years pays several thousand more than the owner who takes a long-term approach to owning and maintaining one car.

Leasing in particular is always a losing proposition when it comes to cost of ownership. Why? Because you own the car during the sharpest period of depreciation, and as you will soon learn, it is depreciation that poses the greatest threat to your car ownership costs.

Am I ok with the old car?

Depreciation is the mother of all automotive operating costs. Even if gasoline jumps to four dollars a gallon, the depreciation will still be the biggest blow to a car owner's wallet.

In general, the older the car is when you first buy it and the longer you own it, the lower your long-term costs will be due to the lower purchase price. The equation is simple, but if you ask yourself the right questions, you can cut your costs even more than you imagined.

Am I ready to hit them where they don't exist?

The older and more unpopular a car is now, the less it may be worth later due to this depreciation cliff. Take the Toyota Yaris, for example: a small and unpopular Toyota model scheduled to be discontinued at the end of 2016 due to poor sales.

Four years ago, the then-brand-new 2012 Toyota Yaris was barely selling 30,000 cars a year, and car enthusiasts called it a boring car. It had many great qualities, including outstanding reliability and impressive city fuel economy, but it was designed for families, not those owners who craved a sporty little car. These days, it's often an escapist fantasy that sells a car better than the reality of daily ownership, and that's where you, the used car buyer, can hit the low-value sweet spot.

A new Yaris in 2012 sold for $15,795. Today, after four years and 70,000 miles, it will likely sell for just $7,000, according to the Kelley Blue Book. That's a 55% reduction in depreciation costs, almost $8,000 over four years, for a car that probably has about $70% of its useful life ahead of it. According to the Blue Book, with age, this annual depreciation cost will decrease by almost 75%.

In short, virtually all vehicles experience the greatest loss of value during the first four years of ownership. After that, you lose only a small fraction of the value, even if you buy a Toyota car, which is currently the most popular brand in the United States. However, if you are a truly economical car buyer, you can do more.

Am I willing to buy an unpopular brand that offers me a great car?

If you look at orphan brands, those brands that no longer sell new cars, you can get even more bang for your buck than the Toyota Yaris.

• Pontiac
• Saturn
• mercury
• SAAB
• Suzuki
• Isuzu

All of them have become forgotten brands. This is because these brands no longer sell new cars in the United States.

These brands are cheaper to buy because no one else hears about them. For example, buying a used Chevy Malibu is much more expensive than buying a nearly identical Pontiac G6 or Saturn Aura because neither of those two models is sold as a new car anymore. The luxury side of the automotive market has the same cost equation. An 8 to 10 year old SAAB luxury sedan like a 9-3 or 9-5 can surprisingly cost as cheap as a bare-bones Toyota Corolla. While other upscale cars like the Saturn Outlook and Mercury Milan typically cost hundreds or thousands of dollars less than their competitors.

So, are you ready to dive even deeper into the less expensive side of the used car market? Well, there's even more value. All it takes is a willingness not to follow the herd.

Am I willing to buy an unpopular "type" of used car?

Almost every four-door family sedan from 10 years ago now has a two-door alternative that may be more attractive thanks to the fact that consumer tastes have changed dramatically over the decade.

I recently sold two almost identical cars with the same mileage. They were 2009 Pontiac G6 midsize cars with 80,000 miles on them - one with four doors and the other with two doors. The two-door model sold for $6000 in a matter of days. The four-door only cost $5400 and took months to complete. The difference in values ​​according to the Kelly Blue Book reflects this difference.

A different model name for the same car as the one on the inside can also make a difference. Four-door Toyota Camrys sell for higher prices than two-door versions sold as Toyota Solaras, due in part to the fact that the Solara is no longer available in the new car market. Chevy Impalas carry a significant price premium over comparable-equipped Chevy Monte Carlos that have also succumbed to changing tastes.

Is this the only niche?

Not at all. There are tons of them.

Large sedans that don't sell like Toyota, like the Ford Crown Victoria, tend to sell for a much lower price than popular midsize sedans or pretty much anything else. Why is this a possible opportunity to reduce your costs? Because big cars tend to appeal to a more mature clientele who drive conservatively and keep the cars in good condition.

Most large cars, like other larger unpopular vehicles like minivans and traditional station wagons, have steeper depreciation curves when new and can therefore be bought cheaply on the used car market.

If you're looking for another layer of security, consider investing in the perfect anti-theft device - the shift lever. Fewer people than ever before know how to drive it, and that's an added bonus if you're willing to buy a non-sports car like a full-size Passat that comes with a shifter. The older and less sporty it is, the more buying opportunities it has.

So, am I ready to invest in an old car?

Every car, popular or not, faces what can be called a brick wall of costs. You may find that between the ages of five and eleven, your car needs a long list of maintenance and repairs, such as tires, timing belt, brakes, and even transmission fluid.

This bill can be as high as $2000 depending on what you ride. So ask yourself: Are you the kind of person who is willing to invest $2000 a year in a car that currently only costs $6,000? How about when it has 180,000 miles on it and needs another $2000 for repairs?

For many of us, this question can be difficult to answer. It depends on the condition of the car and your willingness to deal with maintenance issues rather than tolerating them. There is also another important component that you also need to figure out.

What do modern security features and technologies mean to me?

Over the past 20 years, the number of fatalities per driver in the US has dropped by more than a third. However, safety always depends on personal comfort.

There are those of us who only want a steering wheel, pedals, and a well-made car that was safe enough for its time. Others want the latest and greatest, no matter what, and are willing to pay a high price to get it. It's the same with technology. Many vehicles now offer their own connectivity packages and infotainment features that make technology more seamless.

So where exactly are you at the frontier of security and technology? Would you be happy with a safe car made 10 years ago? Or do you have a need related to your children, your loved ones or even yourself? You can have everything you need with your mobile phone. Or maybe not? These are issues for consideration.

So what is the cheapest car for me?

A Canadian named David Rock may have the definitive answer: for $100, a 22-year-old minivan bought this car with a shifter and a diesel engine that gets fuel from his business of all trades. But there is a chance that you will not follow in his footsteps. So the answer to this question is entirely up to you.

What do you buy, what do you maintain, what do you keep. These ingredients determine your long-term cost of owning any vehicle. If you choose to be a custodian rather than a trader and an investor trying to get where there isn't one, you will come out way ahead.