Frugal rides: Least expensive cars to own
The car-buying universe can be divided into two camps: those who keep a car until it rots away, and those who think a new ride is something they just have to have – despite the fact that it will lose a big chunk of its value as soon as they drive it off the lot.
In a few cases, the deals on some new cars might be so generous that they actually make them less expensive than the one-year old used version of the same model -- but that's an anomaly. Expect to pay a premium to slip into a brand new vehicle.
If you’re not the used-car type, you must have at least wondered which new vehicles are the least expensive to own? Not necessarily the one with the lowest purchase price, but with the lowest total ownership cost, according to Edmunds.com.
Using multiple algorithms, Edmunds tried to estimate the five-year cost of owning each new vehicle currently on the market assuming:
* You'll drive 24,000 kilometres per year
* You’re financing the vehicle using traditional financing, not leasing
* You’re in the "Gold" credit tier when it comes to your finance rate
* You’re making a 10% down payment
* Your loan term is 60 months
* You represent the "average demographic" for insurance purposes
Buying one of the new vehicles listed still isn’t the best way to maximize your money but, if you’re stuck on that new car smell, they look like the least expensive bets right now, the study maintains.
Smaller car winners include the Chevrolet Aveo, the Honda Fit and the Toyota Yaris. The most economical among the smaller SUVs? The Honda Element, Edmunds suggests.
Despite the strong argument for going used, would you buy a brand new car today? When it come to value, do you agree with the Edmunds research?
By Gordon Powers, MSN Money
Posted by: Shawn | Jun 9, 2021 7:25:11 PM
Buying a new vehicle in todays automotive market is not the smart choice. Once you have factored in the depreciation the two year old rental return is the best buy. I have yet to see any factory rebates that compensate for the massive loss a vehicle takes in its first year. That accompanied by the tax paid to the government and the interest paid if you have taken financing at more the 0% and you just lose. The other thing that most buyers do not seem to pick up on when buying their new vehicle is that the dealer is only discounting the vehicle by the amount of the factory rebate. Very few buyers realize that they have not received any actual discount off of the MSRP from the window sticker. If you are going to buy new make sure you find out the factory rebate first and then negotiate the price after.
Posted by: Steve | Jun 11, 2021 2:33:21 PM
Buying a New car to save money is like dating a 'gold digger' save money. BUT, that being said there are a few other areas of weakness for me in the edmonds calculations, for example, how they fail to differentiate the differing costs of fuel & taxes between the US & Canada, how they misses out on a vehicle's (absolute) safety rating (a person will likely miss many more days of work if they hit a Civic in a Chevrolet Aveo than if they are driving a Mercedes S600) and how this much longer recession will affect certain vehicles resale more than others.
In the end my money got invested in a Diesel VW, but then again I wasn't promised a job with a Japanese Car company when I was done writing this opinion.
Posted by: pierre duguay | Jun 14, 2021 11:36:38 AM
I spent over $120,000 on 3 ford vechiles in 2003, 2004, 2005....DUMBEST thing I ever did.
Ecspecially for the 2005 Ford Sport Trac...after three years of owning it, it had a balance remaining of $19,000...($18,000 for the first three years)...
These vehicles were selling for less than $15,000, and barely then! lol
you are right about MSRP and factory rebates. The seller gets all happy because he took off the $2000 Ford Credit, to bring the price to $37,000....when I asked him what kind of deal he is gonna give me, he laughed and said he allready gave me $2000 off...then I gave him the speech of NO, FORD did, this dealership did not. lol he was cunning and treid desperately to pretend it did not work like that...then he tried to slip in an extra charge of $650 for administration fees. What? no thanks keep the vehicle...when you buy groceries at teh store do they charge you an exta 5-10% for giving them your business? would you pay it? NOPE!!! lol
NEW cars are a terrible buy! RIDICULOUS FREIGHT charge (highway robbery)...my wife worked for these companies and the actuall cost for every single vehicle is $75-100...where is the $1600 comeing from? UNION CAW fees.....
CROOKED CONS!
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