Consumer Reports calculates car owner costs

A cheaper car can cost consumers more in the long run compared with a more expensive alternative, according to Consumer Reports’ new owner-costs comparisons, which appear in the Annual April Auto Issue and online in the model overview pages (available to online subscribers from the pulldown search tools or from ratings charts in the Cars section of ConsumerReports.org). In fact, says CR, a car’s sticker price doesn’t tell the whole story.

For example, at about $17,500, a Mitsubishi Lancer could cost $5,000 less than a Mini Cooper Clubman to drive home. But considering the total costs of ownership for each car, the Lancer could cost drivers around $3,000 more over the first five years. Also, a Toyota Highlander can cost $3,000 more to purchase than a V6 Ford Explorer, but owning the Ford after five years can end up costing an additional $6,500.

Consumer Reports recommends that in addition to looking for a good deal on their next car, car shoppers also consider how much the model will cost them to own. To help consumers; CR is introducing new owner-cost estimates which can help consumers compare models and possibly save thousands of dollars. CR’s estimates include depreciation, fuel costs, interest, insurance, maintenance and repair, and sales tax. Because depreciation is factored into the estimates, CR assumes that the vehicle will be traded in after five years for the April-issue ratings on 262 cars. Online subscribers can compare the costs for one, three, five, and eight years of ownership.

CR’s calculations in seven common automotive categories show that the most expensive vehicle to run for five years is the Mercedes-Benz S550 at about $101,750. CR’s calculated that the least expensive vehicle to run over five years was the Toyota Yaris with a manual transmission, at about $23,250.

For more information, read “What that car really costs to own.”

Comments

[David]

"Online subscribers can compare the costs for one, three, five, and eight years of ownership. "

Where is it on the website? I can't find it.

[Will Gayther]

Some of us buy a car and plan to run it into the ground before buying a new one. Some of us also don't take out an auto loan.

Is there going to be a figure that doesn't mix in money "lost" due to depreciation? For example, is a Hyundai Elantra a better buy than a Honda Civic if you're going to buy it and drive it until it won't drive any more?

Also - it would be really cool if there was some rating on how many miles a car would last before you have to junk it.

[Liza]

Hi David,

To get the cost of ownership information, you need to select a vehicle by choosing a specific model from the drop down menus on the cars pages (top left). When you get to a model, there is a button for prices & costs.

[Mary]

I want to help my son plan a budget for owning a car, but I am not sure how to figure in the cost of average maintenance and repairs. (We are pretty sure of our insurance, fuel and loan costs.) Is there a source for this type of information?

[Jeff Bartlett - Consumer Reports]

Hi Mary - Online subscribers can look up an new/current vehicle in our model overview pages. Access through the pulldown menus on the top-left corner of most main pages, or via a ratings chart.

Once there, the Prices/Costs tab has a link for the owner costs, with complete breakdowns over eight years.

Extensive research and analysis went into creating the maintenance and repair database based on real-world figures. While our original intent was to empower purchase decisions, it should provide an good guide for your planning.