These Are The Cheapest 2019 Cars And SUVs To Buy And Hold On ToPosted on: May 29, 2019, by : Anindita Ghosh
Leasing a new vehicle for two or three years has become widely popular in recent years as a way to help ease the sting of what have become sky-high sticker prices. While it may appear to be a cheaper way to go at first glance, leasing virtually guarantees you’ll be making perpetual car payments that will likely only get higher with each successive contract. The chances are solid that you’ll come out ahead by purchasing a car or SUV outright, financing it at an affordable rate, and holding onto it for several years.
But at that, some vehicles are inherently cheaper to own over the long haul than others, and we’re not just talking about the up-front transaction price.
You’ll need to look deep into a given model’s long-term operating costs to determine what you’ll actually pay to own it over time. These include depreciation, fuel economy, maintenance and repairs, insurance premiums, and other variables. Generally, these factors become more critical with costlier vehicles, simply because there’s more money at stake to lose.
The most important ownership cost to consider is depreciation, which is how much of a vehicle’s original value will be lost over time. A given model’s resale value is based largely on economic factors, market preferences, and historical data. According to the AAA, depreciation accounts for almost 40 percent of total ownership costs and averages more than $3,000 per vehicle each year. Considering a car’s future worth is equally important for those leasing a car or SUV because payments are largely based on its projected value at the end of the contract’s term.
With gas prices having spiked in recent months, and with more vehicles requiring premium fuel (which currently stands at a national average of $3.41 per gallon) fuel economy is again becoming a critical concern among new-vehicle shoppers. According to the Environmental Protection Agency, choosing a car that gets 10 more mpg than another will save $2,500 at the pump over a five-year ownership period at today’s prices.
Insurance premiums are also a major ownership cost consideration. While rates are based largely on fixed concerns like a policyholder’s driving record, gender, age, and address, some cars are inherently more expensive to insure than others. This is based primarily on a given model’s claims history and repair costs. Expensive luxury vehicles and red-hot sports cars are generally assessed the steepest premiums, while modestly priced family-minded minivans and SUVs are the cheapest to cover. Whichever vehicle you choose, be sure to shop around multiple carriers to find the lowest rates, given your personal factors.