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The price you pay to buy a car isn’t the only expense associated with buying a car. An important consideration when purchasing a vehicle is whether you have the financial means to cover the ongoing costs of insurance, maintenance, repairs and fuel.
And they can be considerable. according to synchronized According to the latest Cost of Car Ownership report, drivers are spending about 167% more than estimated each year to maintain their current automobile.
Over time, some types of vehicles perform better on the wallet than others. Unfortunately, paying more upfront does not guarantee any financial relief in the future.
you keep paying for luxury
Audi, BMW, Land Rover, Mercedes-Benz, Porsche and Volvo are at the bottom consumer Reports‘ (CR) 2025 annual auto survey When it came to maintenance and repair costs.
“Luxury vehicles are often quite expensive to maintain over time,” CR said. steven alec.
Choosing an affordable, reliable vehicle can reduce maintenance costs throughout its lifetime and lower overall ownership costs. But which type of vehicle will cost its owner the least over time? Is it a gas-powered sedan? A hybrid or electric vehicle? SUV with great mileage?
Here’s what the research says.
Compact Hatches, Crossovers and Sedans – Still the Best
It is unfortunate that auto manufacturers have phased out small vehicles. Compacts are not only the most economical cars to buy, but they also have higher fuel efficiency, cheaper maintenance and often lower insurance premiums and greater long-term durability than larger SUVs and trucks. They also often have the best resale value.
“From decades of dealership and used car management experience, the strongest indicator of true longevity is what franchised dealers are confident keeping on their lots with over 100,000 miles,” said Randy Barron, vice president of the online dealer-to-dealer car auction platform. acv auction. “When you look at that data, a clear pattern emerges. The consistently top-performing brands include Toyota, Lexus, Honda, Acura.”
according to carage’s Five-Year Cost of Ownership Projections The top 10 vehicles with the lowest cost of ownership for 2026 include three Toyotas (Corolla hatchback, Camry and Corolla), two Hondas (Civic and HR-V) and two Nissans (Sentra and Versa). Hyundai’s Venue, Subaru’s Impreza and Kia’s K4 also rank highly.
Should you consider a hybrid?
According to CR reliability ranking“The latest survey results show that all-electric (EV) and plug-in hybrid electric (PHEV) vehicles continue to be a hassle for their owners. However, (conventional) hybrid models, which do not need to be plugged in, continue to shine as reliable options that also generally deliver excellent fuel economy.”
“For consumers who are not ready for a fully electric vehicle – whether due to range concerns, commuting needs or charging availability – hybrid vehicles remain an excellent option,” Barron said. “Many hybrids offer excellent fuel economy, strong reliability and relatively steady depreciation compared to other vehicle segments.”
It’s more important than ever to do your research when buying a car. It’s one thing to be able to afford a purchase, but another thing entirely to pay for future costs. If you’re concerned about keeping your costs the lowest over time, look for smaller vehicles with solid reliability ratings that will depreciate slowly.