Introduction:
Owning a car can be a significant financial commitment, with costs such as gas, insurance, depreciation, and repairs all adding up over time. However, some vehicles are much more expensive to operate than others. Recently, Marketwatch Guides conducted a study to calculate the running costs of various vehicles over a five-year period, revealing some surprising findings about the most and least expensive models to own.
1. The Most Expensive Vehicles to Operate
The study by Marketwatch Guides identified the top 10 most expensive vehicles to operate over a five-year period. Topping the list was the Porsche Cayenne, with total running costs reaching $56,010. Following closely behind were the Porsche Macan and BMW X5 xDrive40i, with running costs of $48,653 and $48,456 respectively. Luxury models such as the Genesis G80, Jaguar XF, and Ford Mustang also made the list, highlighting the significant financial commitment associated with owning these vehicles.
2. Factors Contributing to Operating Costs
Marketwatch’s calculations took into account various factors contributing to the operating costs of these vehicles. Fuel and financing costs were identified as the two most significant expenses for models like the Porsche Cayenne. Five-year financing costs amounted to $18,198, while fuel costs totaled $16,756. Insurance, maintenance, and taxes were also considered in the overall running costs of the vehicles, further emphasizing the financial burden of owning certain models.
3. The Least Expensive Vehicles to Operate
On the other end of the spectrum, the study also revealed the vehicles with the lowest operating costs over a five-year period. The Hyundai Venue emerged as the most cost-effective option, with total running costs of $22,761. This stark contrast to the luxury models further highlights the importance of considering long-term operating costs when purchasing a vehicle.
4. Electric Vehicles and Operating Costs
While electric vehicles (EVs) are often perceived as more cost-effective to operate compared to gas vehicles, the study found that some EVs actually have heavy running costs. Models like the Porsche Taycan, Audi E-Tron GT, and BMW iX were among the most expensive to run, challenging the notion that all EVs are inherently cheaper to operate. Factors such as depreciation and financing costs play a role in determining the overall operating costs of EVs.
5. Depreciation Trends in Gas and Electric Models
Marketwatch also examined the depreciation trends in both gas and electric models, highlighting interesting findings about the value retention of these vehicles over time. While most EVs have better residual value than internal combustion engine (ICE) vehicles after one year, the picture changes after five years. Electric models were found to depreciate almost as quickly as gas models, indicating that long-term ownership costs should be carefully considered when choosing between different vehicle types.
Conclusion:
The study by Marketwatch Guides sheds light on the significant variations in operating costs among different vehicle models, emphasizing the importance of long-term financial planning when purchasing a car. Factors such as fuel, financing, insurance, maintenance, and depreciation all contribute to the overall cost of ownership, highlighting the need for consumers to carefully evaluate their budget and priorities before making a decision. By understanding the full scope of operating costs associated with a vehicle, individuals can make more informed choices that align with their financial goals and lifestyle needs.