An economist might find nothing or very little to complain about car sales. However, it is getting quite expensive for users to purchase and own a car. According to Kelley Blue Book, new-car transactions were higher by 1.4%. At the same time, long-term ownership costs are on the rise. This is where the real money over time tends to add up. AAA says drivers are spending approximately 70 cents for every mile, or $9,125 per year. This is based on driving a typical sedan for 15,000 miles annually. It is 1.96% more than it was in the past.
According to AAA experts, many factors are considered when calculating the costs of operating and owning a car. Before making a decision to buy a vehicle, it is vital to determine the overall operational and ownership costs. You should then compare them to your future as well as current financial situation.
They say the devil is in the details. When it comes to cars, a prospective buyer can keep a sizeable amount of money if they do their homework before they choose a truck or car that delivers the lowest rate in terms of best fuel economy and lowest rate of depreciation. Other factors to consider include the vehicle that costs lowest to repair, maintain, insure and finance.
When cars were compared, Mazda and Lexus were found to deliver lowest overall operating costs when it came to mainstream and luxury models. Studies have shown Mazda in particular affords high residual values and low average transaction prices. The make also is also ranked as having the most affordable insurance and fuel costs. Among top shelf brands, Lexus ranks the lowest when it comes to repairs. It is also the most affordable in terms of insurance and fuel costs.
Although two import brands were considered for affordable long-term costs across their model lines respectively, more than half of car makers who were winners in 5-Year Cost to Own Award were domestic car makers. In fact, General Motors collected an astounding eight citations of the 22 present.
Among the models from General Motors was the diminutive Chevrolet Spark. The car garnered two separate awards: One award for the all-electric Spark EV in plug-in vehicles, and another for the conventionally powered model in the subcompact category. Experts say the former beats other types of electrified models such as the Honda Accord Plug-In Hybrid and Chevrolet Volt in almost all ownership factors.
Other cost-saving rides worth noting on the list include the Ford Explorer crossovers, Mitsubishi Outlander, Jeep Patriot, full-size Chevrolet Impala sedans, mid-size Honda Accord and compact Toyota Corolla. When it came to sports cars, Ford Mustang was leading the pack. The two-door Audi A5 was considered to be the most frugal luxury car to own.
When shopping for a new truck or car, which are the most important long-term ownership costs you should consider? Inarguably, the most significant factor is depreciation. Alternatively, you can look at how well the car holds its value over time. This should be based on historical data and economic factors.