Top 10 Cheapest Cars To Own By Edmunds’
Sponsored by: Liberty Mutual Auto Insurance
If you’re a frugal person who loves cars, here’s a list of the top 10 cheapest cars to own according to Edmunds’. At an average price of around $13,500, you should shoot to earn roughly $135,000 a year and pay in cash before you even think about splurging on one of these puppies. The Toyota Yaris and the Honda Fit are my two favorite. Commentary continued below…….
Hyundai Accent GS:
Starting price: $10,690
5-year total cost: $25,958
Cost per mile: 35 cents
As basic transportation, the Accent GS three-door isn’t so basic. Its 110-horsepower, 1.6-liter four-cylinder engine delivers decent fuel economy with an EPA estimated 27 mpg in the city and 33 mpg on the highway. The interior is relatively roomy and comes with power accessories and air conditioning.
Nissan Versa Base
Starting price: $10,710
5-year total cost: $27,196
Cost per mile: 36 cents
Nissan Versa: A sedan for the frugal, Versa’s stingy fuel consumption earns it an EPA rating of 26 mpg in the city and 34 mpg on the highway. A five-speed manual transmission ushers the 1.6-liter four-cylinder engine’s 107 horsepower to the front wheels. Its relatively roomy back seat is a major attraction in this segment; otherwise, its cabin is devoid of frills.
Chevrolet Aveo5 LS
Starting price: $12,685
5-year total cost: $28,360
Cost per mile: 38 cents
Chevrolet Aveo5 LS: Chevy beefed up the Aveo’s 1.6-liter four-cylinder for 2009 and it now produces 107 horsepower. EPA estimated fuel economy is a very respectable 25 mpg in the city and 34 mpg on the highway. Among its short list of standard features is a four-speaker audio system with an auxiliary input jack.
Suzuki SX4 Sedan
Starting price: $13,994
5-year total cost: $28,965
Cost per mile: 39 cents
Suzuki SX4 Sedan: A number of trim levels let consumers increase content in smallish dollar increments. In its base form, though, the SX4 offers full-power accessories and a tilt steering wheel. EPA fuel economy estimates are 23 mpg in the city and 31 mpg on the highway earned by a 143-horsepower, 2-liter four-cylinder engine.
Pontiac G3
Starting price: $15,055
5-year total cost: $29,049
Cost per mile: 39 cents
Pontiac G3: Compared to the first four entries on this list, the G3 is positively loaded with standard equipment. Air conditioning, a six-speaker audio system with CD player and auxiliary input jack, and a tilt steering wheel are all standard. A 106-horsepower, 1.6-liter four-cylinder engine mated with a five-speed manual transmission earns it an EPA rating of 27 mpg city/34 mpg highway.
Mazda3 iSport
Starting price: $15,360
5-year total cost: $29,271
Cost per mile: 39 cents
Mazda3 iSport: Six airbags, anti-lock brakes and a four-speaker audio system with CD player and auxiliary audio jack are all standard in this sedan. A 148-horsepower, 2-liter four-cylinder engine collaborates with a five-speed manual transmission to earn EPA estimates of 22 mpg city and 30 mpg highway.
Honda Fit
Starting price: $15,460
5-year total cost: $29,420
Cost per mile: 39 cents
Honda Fit: Nicely appointed, even the base Fit has air conditioning, full-power accessories and a four-speaker audio system with CD player and auxiliary input jack. Its performance is on par with this group and is provided by a 117-horsepower, 1.5-liter four-cylinder engine. Its fuel economy is among the best with EPA estimates of 27 mpg city/33 mpg highway.
Pontiac Vibe
Starting price: $16,735
5-year total cost: $29,512
Cost per mile: 39 cents
Pontiac Vibe: Fraternal twin to the Toyota Matrix, the Vibe in its base form is fairly Spartan. It does come with a four-speaker audio system with CD player and auxiliary input jack, and a tilt/telescoping steering wheel. Power arrives via a 132-horsepower, 1.8-liter four-cylinder engine. Fuel economy is acceptable, with an EPA rating of 26 mpg city and 28 mpg highway.
Toyota Yaris
Starting price: $12,955
5-year total cost: $29,595
Cost per mile: 39 cents
Toyota Yaris: You have to step up a trim level to get an audio system, but the base Yaris three-door hatchback does have air conditioning and a tilt steering column. Its power comes from a 106-horsepower, 1.5-liter four-cylinder engine. With an EPA rating of 29 mpg city and 36 mpg highway, its outstanding fuel economy earned it a spot on our list of top 10 fuel misers.
Nissan Sentra
Starting price: $16,070
5-year total cost: $29,623
Cost per mile: 39 cents
Nissan Sentra: With the most standard equipment of any entry on this list, the Sentra sedan comes with air conditioning, a four-speaker audio system with CD player and auxiliary input jack, and power windows and locks. Its 2-liter four-cylinder engine generates 140 horsepower. Its EPA rating is 25 mpg city and 33 mpg highway.
Ok, now that you’ve been underwhelmed by what someone making $135,000 can buy, let’s be honest here. The choices aren’t that great based on the 1/10th rule. No wonder why so many people who make considerably less, spend considerably more. However, how do you consciously spend $500-800/month on car payments if you’re taking home only $4,000 gross (median US salary), or $3,000 net a month? It’s just not right for your financial freedom goal.
Use the 1/10th rule as a motivating factor to get that income up or just buy something cheaper! Don’t be that dumb 26 year old kid you see speeding by you in some shiny new $40,000 BMW. That was me at one point (“8 Cars In 10 Years”), and I know you aren’t as weak and stupid as me!
I would rank the automobile as the #1 personal finance killer for folks under 35. For some reason, so many are so obsessed about driving something nicer than they can really afford, knowing the asset will be worth half in 5 years, it’s perplexing. Meanwhile, our genius government is providing a one-time shot in the arm (“Cash for Clunkers = Personal Finance BOMB!“) to the economy by temporarily boosting auto sales while putting hundreds of thousands of individuals in financial peril. If you can only drive a sub $4,000 beater, it is highly likely you aren’t going to comfortably afford the median car price of $25,000!
I’m curious to know what other car splurge guidelines readers have? Some have discussed creating a “car fund” which I think is a fantastic idea. There’s a good chance you won’t deploy all that cash for a car because it’s taken you so long, with many small sacrifices to save up!
Tomorrow, we’ll be discussing college football and the riches these athletes face.
Keigu,
Financial Samurai – “Slicing Through Money’s Mysteries”
Follow me on Twitterhttp://www.twitter.com/financialsamura
No related posts.
A friend of mine just emailed me one of your articles from a while back. I read that one a few more. Really enjoy your blog. Thanks
[Reply]
I like the Honda Fit too. Best looking of the bunch. Too bad these cheapest cars also means they are the smallest, and perhaps the least safe in a collision? I was looking into the SMART car for under $15K, but I donno. Seems a little too dangerous.
I’m all for just a 5 year older car with 60-80,000 miles on it for less than $7,000.
[Reply]
You do not take into account other factors, such as accident ratings and safety. Those tin cans are tiny on a road filled with large trucks and Hummers (although, here’s hoping some of those were cashed in during the “Cash for Clunkers” thing that just happened). My life and that of my family is something I factor in driving around on California’s freeways.
[Reply]
admin Reply:
August 25th, 2009 at 12:16 pm
KCZ – Thanks for commenting. I agree, safety is huge and I wouldn’t feel very safe on the highway with a family of 4 either. In that regard it’s unfortunate there are so many massive vehicles on the road. One hop over to Europe, and you’ll notice everybody with a mini car, even smaller than these Top 10.
The older we get, it seems the older we car about safety. At least we are seeing a gradual shift towards economy cars. Check this out below as it relates to the Clunkers program. At least many of the new vehicles purchased are manufactured here in the US.
Top 10 New Vehicles Purchased
Toyota Corolla
Honda Civic
Ford Focus
Toyota Camry
Hyundai Elantra
Toyota Prius
Nissan Versa
Ford Escape FWD
Honda Fit
Honda CR-V 4WD
*as of last Friday
Notably, the Toyota Corolla, Honda Civic, Ford Focus, Toyota Camry, Ford Escape FWD, and the Honda CR-V 4WD are all manufactured in the U.S.
Top 10 Trade-in Vehicles
Ford Explorer 4WD
Ford F-150 Pickup 2WD
Jeep Grand Cherokee 4WD
Jeep Cherokee 4WD
Ford Explorer 2WD
Dodge Caravan/Grand Caravan
Chevrolet Blazer 4WD
Ford F150 Pickup 4WD
Chevrolet C1500 Pickup 2WD
Ford Windstar
Best, RB
[Reply]
As a young adult, I agree that cars are the #1 financial killer for my age group. My friend spent $9,000 on a used jetta, of course didn’t have hte cash for it and had to get an auto loan. His timing belt broke and it took $2,000 to get it fixed. After interest on the loan I don’t even want to know how much he will end up spending on it. And this is someone who is entering his second year of college (took a couple years off to pursue other things before going) and plans on getting married in at most 2 years from this summer.
A financial killer? Absolutely.
[Reply]
RB, I really like your 1/10th income rule for buying a car… even though the average person will think this is crazy. Then again, the average person isn’t rich.
I’m a fan of the Honda Fit too. I may look to buy a used one when I move out of the city and need a car in a year or two. Right now I’m car-less and loving it.
-Gen Y Investor
[Reply]
admin Reply:
August 25th, 2009 at 7:40 pm
Gen Y – If you live in NYC, I’d never buy a car. Subways and taxis are awesome there. But alas, I donno where you are based. I used to have a car AND a motorbike in NYC and the parking alone was $500/month! I paid cash for the vehicles after my first bonus, but the entire thing was a big waste of money.
I would have at least $70,000 in my bank account if I just stock with the car I bought 10 years ago I believe.
What’s crazy is someone making $60,000 driving a $40,000 car. Now that’s crazy! :)
[Reply]
I agree with you 100%. There really is no reason to have a car in NYC provided you don’t travel out of town a lot. I get a monthly metro card and that takes me everywhere I need to go. If I’m traveling somewhere I usually borrow my parents car. You can even use a service like Zip car if you only need a car for a day or too per month. Parking is killer in nyc :)
[Reply]
The latest update is that 691,000 sales have been made. Sweet, almost 700,000 American’s just spent or borrowed on average $21,000 more than they needed to on a car ($25,000 average cost of car – $4,000 clunker credit). Oops. Long live the consumer!
RB
[Reply]
soon you can add the ford fiesta to this list. the available storage in the fiesta is not as big as the fit; however it’s supposed to be a lot better handling car.
http://www.motortrend.com/future/112_0806_honda_fit_vs_ford_fiesta/index.html
[Reply]
fs Reply:
August 31st, 2009 at 9:26 pm
Yeah, the Ford Fiesta could be a good one. Ford didn’t get any bailout money, so i’m more inclined to buy one of their products.
[Reply]
I find it amazing how well priced the Mazda 3 is. You would think it could pass $20K easy.
[Reply]
I am looking for a new car at the moment (no I can’t afford it but girlfriend is pregnant). Was thinking about a Yaris but it works out more expensive than I thought.
financial spreadbetting´s last blog ..Financial Spread Betting Companies – Part 2
[Reply]
The Sentra is about the only one of that list I would consider. The cost of owning the vehicle has to meet the other desires of the car.
Mark´s last blog ..Loans For People With Bad Credit
[Reply]