What Cars Give the Best Bang for Your Buck?

By Bill McLauchlan

While they can be useful as you research your next new car buy, “First Drives”, “Reviews” and “Road Tests” found in buff books or on web sites can’t come up with the big picture.

By their very nature they tend to be limited in scope. First drives are one-day affairs for auto writers, really no more than a chance for a few hours at the wheel and some quick first impressions. Reviews and road tests last a little longer – usually a week – giving the journalist a chance to live with the vehicle long enough in everyday use to pick up on things that might affect long-term ownership. But what they can’t tell you what you can really expect five years down the road from the day you drive it off the dealer lot.

But don’t despair dear reader. Help is at hand, from Kelley Blue Book www.kbb.com, a leading provider of new and used car information.

According to KBB, the 2014 model-year vehicles and brands (in both non-luxury and luxury categories) with the lowest projected ownership costs are, respectively, Mazda and Lexus.
These awards, based on data for new cars for the initial five-year ownership period, take into consideration depreciation, expected fuel costs, finance and insurance fees, maintenance and repair costs, and registration fees for new models.

Using those parameters, Mazda and Lexus are the brand winners for a second consecutive year. In addition to a low average purchase price and strong residual values across its full model lineup, Mazda is ranked among the lowest in fuel and insurance costs, making it the 2014 winner in KBB’s 5-Year Cost to Own rankings. Some of the models driving Mazda’s success include the Mazda3, Mazda6 (above) and CX-5.

Despite an average purchase price higher than some of its segment rivals, Lexus offers the lowest depreciation cost of any of the eligible luxury brands, thanks to strong residual values across its full model line. Lexus also ranks lowest in repairs and is among the lowest in fuel and insurance costs. Some key models contributing to Lexus’s standout-performance include the ES (right), IS and RX models.

While most of us want to know how much a car will cost up front, sometimes “an even more expensive car can actually save you money during the first five years of ownership,” observes Dan Ingle, vice-president of vehicle valuations for Kelley Blue Book. The Cost to Own information, “evaluates the other out-of-pocket expenses drivers will incur, which helps consumers choose the vehicle that fits them and their wallets best, helping save money down the road,” he adds.

© GM Corp.                                                                Chevrolet Spark 

In an interesting twist, Mazda had no winner in KBB’s individual vehicle categories. Chevrolet gained recognition in four segments: Subcompact (Spark), Full-size Car (Impala), High-Performance Car (Camaro SS/ZL1) and Plug-in Vehicle (Spark EV).

Another notable Cost to Own Award winner includes the 2014 Buick Encore, in the Luxury Compact SUV/Crossover category. The Encore beat out Acura’s RDX and the BMW X3 in all parameters except maintenance and repairs. The Encore offers depreciation costs 36 percent lower than the RDX and almost 64 percent lower than the X3. And in the Plug-in Vehicle group, Chevrolet’s Spark topped its Chevy Volt corporate sibling and the Honda Accord Hybrid in nearly all ownership factors – coming out ahead, for example, in lower insurance and licensing fees.

© GM Corp.                                                                                                                                                                              Buick Encore

Other category winners included: Toyota Corolla (Compact Car), Hyundai Veloster Turbo (Sporty Compact Car), Honda Accord (Mid-size Car), Buick Verano (Entry-Level Luxury Car), Audi A5 (Luxury Car), Ford Mustang (Sports Car) and Toyota Prius c (Hybrid/Alternative Energy Car).

On the SUV/Truck side Jeep’s Patriot took the Compact SUV/Crossover award, the Mid-size SUV/Crossover crown went to Mitsubishi’s Outlander and Full-size SUV/Crossover honours went to Ford’s Explorer. Apart Buick’s compact Encore, the luxury SUV winners were Lincoln MKX (Mid-size) and the Buick Enclave (Full-size). The Lexus RX was deemed best Hybrid SUV/Crossover while the Dodge Grand Caravan won in Minivan/Van. Best Mid-size Pickup Truck went to the Toyota Tacoma regular Cab with GMC’s Sierra 1500 Regular Cab getting the nod for Full-size Pickup.

Let the showroom shopping begin.