Cheap Cars That Are Expensive to Own

A "cheap" car in the U.S. can be expensive to own—high depreciation, repair cost, or insurance can make total cost higher than a pricier car. Here's how to spot cheap cars that are expensive to own and how to compare total cost.

TL;DR Cheap to buy ≠ cheap to own. Compare total cost of ownership—purchase + depreciation + fuel + insurance + maintenance—over 5 years. Use autopremo.com total cost of ownership to see which cars are cheap to own, not just cheap to buy.

Why "Cheap" Cars Can Be Expensive to Own

• High depreciation — a cheap car that loses 60% of value in 5 years can cost more in depreciation (as % of purchase) than a car that holds value.
• High repair cost — some cheap used cars have known reliability issues; repair cost can exceed the car's value.
• High insurance — some "cheap" cars (sporty, high-theft) have high insurance; total cost can be higher than a "pricier" car with lower insurance.
• Poor fuel economy — cheap older cars can have bad MPG; fuel cost over 5 years can be high.

See total cost at autopremo.com.

How to Spot Them

• Check total cost of ownership — use autopremo.com total cost of ownership. Compare cheap-to-buy cars to pricier cars over 5 years. If total cost is higher for the "cheap" car, it's expensive to own.
• Check reliability and repair cost — research the exact year and model; factor repair risk into total cost.
• Get insurance quotes — before you buy, get a quote for that vehicle. High insurance can make a "cheap" car expensive to own.

Compare total cost at autopremo.com.

Bottom Line

Cheap to buy doesn't mean cheap to own. Compare total cost of ownership—not just sticker—over 5 years. Use autopremo.com to see which cars are cheap to own so you don't overpay over time.