Consumer Reports: Cheap Cars Can Cost A Lot

**drey** · March 7th, 2008 09:59 PM

What's your reaction to this? I don't believe in Consumer Reports every since actually. So do you believe an Alto will cost a lot to maintain than a Mini Cooper?

Down the road, cheaper cars and trucks may actually cost more than expensive ones. According this year's Annual Auto Issue from Consumer Reports, vehicles with lower price tags may end up costing their owners more than the more expensive alternatives available at the lot.

According to CR, over the first five years of ownership, a Mitsubishi Lancer could end up costing $3,000 more to own than a Mini Cooper, a car that initially costs $5,000 more to purchase.

Based on their study of more than 200 newer cars, CR has compiled data that allows car buyers to compare owner costs.

CR's 2008 Auto Issue factors six expenses into its owner-costs comparisons: depreciation; fuel; interest, based on a five-year car loan; insurance; maintenance and repair; and sales tax (based on a national average) for each individual vehicle.

Depreciation is factored into these expenses under the assumption that the vehicles will be traded in after five years.

The 2008 Auto Issue is available now in newsstands until June 4 as well as online at the Consumer Reports Web site along with other true-cost comparison tools.

CR's calculations show the most expensive vehicle to drive for five years is the Mercedes-Benze S550, costing approximately $101,750. The cheapest: the Toyota Yaris at about $23,250.

Consumer Reports is one of the most trusted sources for consumer products and services, conducting some of the most comprehensive auto tests of any U.S. publication. With CR's newest information, car shoppers should have a better knowledge of what it truly costs to own and drive a vehicle.

CR's 2008 Auto Issue factors six expenses into its owner-costs comparisons: depreciation; fuel; interest, based on a five-year car loan; insurance; maintenance and repair; and sales tax (based on a national average) for each individual vehicle.

Depreciation is factored into these expenses under the assumption that the vehicles will be traded in after five years.

CR's calculations show the most expensive vehicle to drive for five years is the Mercedes-Benz S550, costing approximately $101,750. The cheapest: the Toyota Yaris at about $23,250.

Consumer Reports is one of the most trusted sources for consumer products and services, conducting some of the most comprehensive auto tests of any U.S. publication. With CR's newest information, car shoppers should have a better knowledge of what it truly costs to own and drive a vehicle.

**Memphis Raines** · March 7th, 2008 11:03 PM

Very interesting and will be the subject of much debate here I'm sure.

I will take this with just a grain of salt simply because the first key word that I read in the report is 'may'. It may cost more in the long run but not necessarily, especially that one of the factors for this conclusion is that the vehicles in comparison are under a five-year car loan and I guess we all know how much that costs here on our shores.

Although the comparison between the MB S550 and Toyota Yaris is obviously accurate, I just can't help but also compare a Ford Expedition against its brother, the Everest. The Everest is cheaper but then Exped gets the boot when it comes to maintenance (like the fuel alone) and resale value.

**drey** · March 8th, 2008 09:55 AM

Again, they are comparing a Mini Cooper against a Mitsubishi Lancer? Iba ang FC, and a retro mini car vs. a sedan?

**niky** · March 9th, 2008 11:30 PM

This is a "may". There's a flaw in the methodology there, somewhere.

Take note that the Lancer is a bigger car, with a bigger engine and worse fuel consumption. If you compare like-to-like, the Mini would cost more than a Honda Fit or a Chevrolet Aveo down the road.

Resale value really skews the picture, simply because the Mini has one of the most ridiculous resale values on the planet. They're even crazier than Hondas. People are willing to pay big bucks for a secondhand one, just for the looks.

**alwayz_yummy** · March 9th, 2008 11:45 PM

yup 300t+ just to look like Mr.Bean on the road..on the other hand...well enthusiasts...just the some bugs(vw beetles) and combi vans na grabe resale ng restored ones

**Type 100** · March 10th, 2008 12:08 AM

Personally I don't believe this.

A lot depends on how you use the car, I think. For all we know, new Minis might not even be daily driven because owners are too scared of spoiling the looks.

Besides, Niky is correct, depreciation on BMW-made Minis is ridiculous. How well do you think will even the brand-spanking-new Lancer retain its value? Obviously that's a very unfair comparison and it undermines the credibility of Consumer Reports.

My two cents

**impulzz** · March 10th, 2008 12:32 AM

wala kasi silang Banawe... puro casa sila kaya mahal parts and labor nila

**rai2k8** · March 10th, 2008 12:49 AM

What is the report trying to imply? It doesn't make any sense.

**empy** · March 10th, 2008 01:12 AM

also keep in mind that besides fuel, the biggest cost factored into this comparo was depreciation. depreciation is always a controversial topic because it can be very important to some and meaningless to others. consider:

1. depreciation doesnt mean **** if you never sell your car. CR assumed that the car is traded in after 5 years. that may be typical for US buyers but not for others.
2. of course a $100,000 benz would be the most expensive in this study. if you assumed all cars depreciate at the same rate, the benz is already five times more costly than a $20,000 yaris. but ask the benz driver if he cares - he didn't buy that car to have the lowest cost of ownership in the neighborhood.

also, if you assume each car was financed at the same terms, then the interest payments on the benz will also be five times more than the yaris.

so what's the point of the study, then? that expensive cars cost more and cheaper cars cost less? :hihihi: gee thanks, CR...i never knew that until now

the trouble with CR is that it always looks at cars as a necessary evil instead of a passion. therefore, their studies are concerned with reliability and cost minimization, and nothing else. this may be useful to those who consider cars as nothing but an appliance and a point-a-to-b conveyance, but it is completely useless and ridiculous to a car enthusiast.

**Type 100** · March 11th, 2008 12:26 AM

...kaya Car&Driver na lang ang basahin natin

Maybe they don't offer any help with depreciation, but their long-term road tests do give a realistic idea of what running costs to expect and what parts will need replacement when.