Cheapest Cars to Own

published 10 April 2012

Most car buyers fixate on price -- and how that translates into monthly loan payments -- without bothering to calculate other long-term ownership costs. But comparing what you'll likely pay for fuel, insurance and repairs over the time you own a vehicle makes you a much smarter shopper -- and could save you thousands of dollars.

SEE OUR SLIDE SHOW: 10 Cheapest Cars to Own

We asked Vincentric, an automotive data firm, for a list of vehicles with the lowest five-year ownership costs, including repairs, maintenance, taxes, fuel, insurance, financing with a five-year loan, the opportunity cost of not investing your out-of-pocket expenses elsewhere, and depreciation (the calculations assume you will sell the vehicle after five years). Comparing those autos with ones that did well in Kiplinger's annual rankings -- in which we reward performance, value and safety -- we found the best bang for the buck in four categories.

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Compacts. Nissan's base Versa (sticker price: $11,770), with five-year ownership costs tallying $27,135, tops the cheap list. But it has a full complement of safety features, plus standard air conditioning, and it gets 27 miles per gallon in the city and 36 on the highway. The Versa also earns a Top Safety Pick designation from the Insurance Institute for Highway Safety. But horsepower is a paltry 109, the interior is swathed in hard plastic, and the seats are uncomfortably stiff.

Family sedans. Midsize family sedans may not be sexy, but they are safe. A case in point is the Toyota Camry. The Camry scores a Top Safety Pick from IIHS and a five-star overall rating in government crash tests. The base-level version ($22,715) has the lowest five-year ownership costs in its class: $34,237. The entire Camry lineup was redesigned for 2012, and the Hybrid LE ($26,660) won Best New Car in our annual rankings (its five-year costs run $35,257).

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Drive Time Buying & Leasing A Car

Anderson has been with Kiplinger since January 2004, when she joined the staff as a reporter. Since then, she's covered the gamut of personal finance issues—from mortgages and credit to spending wisely—and she heads up Kiplinger's annual automotive rankings. She holds a BA in journalism and mass communication from the University of North Carolina at Chapel Hill. She was the 2012 president of the Washington Automotive Press Association and serves on its board of directors. In 2014, she was selected for the North American Car and Truck Of the Year jury. The awards, presented at the Detroit Auto Show, have come to be regarded as the most prestigious of their kind in the U.S. because they involve no commercial tie-ins. The jury is composed of nationally recognized journalists from across the U.S. and Canada, who are selected on the basis of audience reach, experience, expertise, product knowledge, and reputation in the automotive community.