The 10 Least Expensive Cars to Own
We look at sticker price, insurance costs, and fuel economy to determine the cheapest cars to own.
When it’s time to buy a new car and desperation comes calling, all other
priorities peel away, leaving price alone to govern the decision. But
simply buying the cheapest car isn’t necessarily the cheapest route.
Cars—even the affordable ones—are expensive to own and operate. So we
went in search of the answer to an important question: What is the
cheapest car to buy and own? Fuel is an obvious consideration, but insurance can’t be ignored, either.
To normalize purchase-price variations based on the terms of a loan,
we’re using MSRP for purchase price and settled on a three-year
ownership window. On top of MSRP, we rolled in the cost of insurance
over three years for a 28-year-old male, single, living in the same area
as our Ann Arbor offices. Fortunately for him, he has no tickets. To
that sum, we added the cost of fueling each car during that time based
on 12,000 miles traveled annually and using the EPA’s combined
fuel-economy rating and the nationwide average price of regular gas over
the past year—which, at $2.57 a gallon, sounds mighty appealing.
Although the EPA’s figure doesn’t perfectly reflect the fuel economy
people will see in day-to-day use, it does provide an accurate
prediction of how vehicles will fare relative to one another.
DISCLAIMER: The figures below are accurate as of the publishing date.
However, MSRP varies almost daily. Fuel mileage will vary depending on
driving conditions, driving style, and other factors. Insurance rates
vary town to town, driver to driver, and minute to minute. Cars are
listed in descending order of ownership cost. No, we will not buy you
one.
Hyundai Elantra
A manual transmission is the short-changed buyer’s best friend, as manuals are typically $1000 or so cheaper than automatics and, except in the case of today’s most bleeding-edge transmissions, are more fuel efficient to boot. This Hyundai is a perfect example, as the only manual transmission available in the entire 2010 Elantra sedan lineup is in the base Blue model tuned for—you guessed it—maximum fuel efficiency. Lower-rolling-resistance tires, a more efficient alternator, and electric power steering—instead of hydraulic—also aid fuel economy. We here at C/D like manuals because they increase driver involvement, too, an area in which the Elantra sedan could use some improvement, so there’s a bonus.
Kia Forte Sedan
Of the 10 cars on this list, five are Korean: Kias or Hyundais. (The
Japanese industry has three representatives; the U.S. has one; and a
European, as imported by Roger Penske—the Smart—fills the last spot.) Of
these Korean cars, the new-for-2010 Forte is the strongest in its
respective class. In its slightly more expensive coupe form (only $600
more than a similarly optioned sedan), the Forte is even sort of
attractive, too. The cheapest Forte is arguably the most fun, as the
larger engine adds pounds without much extra power, and the manual
transmission is a six-speed, giving enthusiast drivers plenty of ratios
from which to choose. If we were to pick a car from this list, the Forte
would be among the front-runners.
Suzuki SX4 Sedan
In its more expensive (by about $2500) and better-equipped hatchback
form, the SX4 is one of the most underrated cars on the market. The
four-door comes in a more America-friendly three-box shape—although it’s
a bit gawky-looking—and it’s actually decently quick for something so
affordable, although a nine-second 0-to-60-mph time is only favorable
when compared with many other cars on this list, fully laden freight
trains, and limping lambs. Although it is moderately fun to drive, the
SX4 sedan placed sixth in a recent eight-car comparo, mostly because we just couldn’t get comfortable in it. Be sure to take a long test drive before committing to this Suzuki.
Kia Soul
The small-car explosion that’s been going on over the past few years has
reached the point at which we start to see automakers investing in
interesting and fun small cars and not simply inexpensive ones. The Kia
Soul belongs to both groups. Its presence here is testimony to its
affordability—even in the long run—and its appearance immediately
identifies it as something different. Kia offers an extensive menu of
customization options—including stripe packages, wheels, and body
add-ons—and a Scion-esque stream of limited editions sporting exclusive
paint and interior trimmings. In the often dreary small-car segment, the
Soul stands out.
Toyota Yaris Three-Door Hatchback
The Toyota Yaris is often cited as an example of why the Smart Fortwo
needn’t exist. About $1000 more expensive, it feels and looks more like a
real car, it has more cargo space, and it won’t hang your buddies out
to dry if you occasionally need to accommodate more than one passenger.
Even so, the Yaris is as devoid of driving pleasure as the Smart,
although its center-mounted instrument panel adds driving excitement by
taking the driver’s eyes off the road whenever he wants to know how fast
he’s going. So there’s that.
Kia Rio Sedan
Her name is Rio, and although she doesn’t exactly dance like a river
twisting through the dusty land, she does manage more than just an
anemic shuffle. In a comparison test
of econocars, we placed the Rio third, finding it actually kind of cute
and almost fun to drive—certainly when considered in the spectrum of
under-$15,000 hatchbacks. Buyers looking for a similar driving
experience with a little more funk in the styling—and who can shake
loose a few more bucks—would do well to consider the Kia Soul, just two
notches pricier on this list.
Chevrolet Aveo Sedan
Remember Daewoo, the poorly received Korean subsidiary whose products GM
thought would be the next big thing after it gave them to college kids
for free? As Oprah would prove again with the Pontiac G6, giving cars
away doesn’t help anyone’s perception of their value. Daewoo lives on
outside our shores and sends an undercover agent here as the Chevrolet
Aveo. The little Chevy has improved dramatically in the past few years,
but if you’re drawn to this little four-door, might we suggest waiting
another year or so? A replacement is due in 2011, and it should be wholly more exciting than the current car while being similarly thrifty.
Smart Fortwo Coupe
Think of the Smart as the perfect cure for parallelparkusphobia, or as a
motorcycle for people with chronic vertigo. The Fortwo actually is a
good idea: Just look around and notice how few cars actually have more
than one person in them. It’s a strong argument for the smallest
possible vehicle, period. Still, we fall short of wholehearted
endorsement—heck, even half- or quarter-hearted endorsement—for one
reason alone: The sole transmission choice is a total bummer. If all you
want is small, cheap, and fuel efficient, get a Suzuki Hayabusa
superbike. It, unlike the Smart, at least will pop wheelies.
Hyundai Accent Three-Door Hatchback
The Accent is something of a darling at our office. It’s a delightfully
tossable little blob, and there’s something liberating about driving
around in a brand-new car with a replacement price of less than $11,000.
But the Accent illustrates an interesting trend we noticed in
researching this roundup: Korean cars tend to have higher insurance
rates than similarly priced and matched cars from other countries. The
Accent is actually the cheapest car on this list in purchase price, yet
the Accent’s insurance cost over three years is nearly $750 higher
than the Versa’s. So remember, if your decision will be based strictly
on dollars, your insurance agent can be more important than your
salesperson.
Nissan Versa 1.6 Base

The Nissan Versa is a competent and capacious car in any trim, and even
people with no criterion but price of entry might be a bit shocked at
how little a base Versa includes. Both the engine (1.6 liters) and the
wheels (14 inches) are smaller on the ultra-cheap 1.6 than they are on
other Versas. It has no ABS and no power locks, mirrors, or windows. Not
even a radio is standard. The transmission is manual, Nissan skimps on
the seat padding, and even the clock is gone. If all you want is cheap,
then all you get is this. It’s still not a bad package, but if you want
the cheapest car possible, for goodness’ sake, buy used.
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