Many years ago, someone was looking for a way to determine what a new car would cost him over the next few years. He was disappointed to find that information simply did not exist. While plenty of resources would give him the vehicle price to buy... Read More

Depreciation Our analysis shows, for each new vehicle, the projected annual and cumulative amount of depreciation over five years. Note that depreciation and resale value are two measures of the same element. A car’s purchase price minus depreciation equals a car’s resale value... Read More

What is the difference between new and used car ownership costs over the three year (2008-2010) period? IntelliChoice's used car ownership costs cover the latest three used model years (the most likely years offered as certified under manufacturer pre-owned vehicle programs), but they are still based on a five-year projection of what a vehicle will cost to own and operate during that time. Therefore, a vehicle ... Read More

Vehicles with just low ownership costs do not necessarily make good values. The IntelliChoice Best Overall Value of the Year (BOVY) Awards recognize those vehicles whose total cost of ownership is significantly lower than expected relative to their peer models, thus assisting consumers in making smarter purchase... Read More

What is a BOVY?
Vehicles with just low ownership costs do not necessarily make good values. IntelliChoice’s Best Overall Value of the Year (BOVY) Awards recognize those vehicles whose total cost of ownership is significantly lower than expected relative to their peer models, thus assisting consumers in making smarter purchase decisions. These vehicles are not just excellent... Read More

Depreciation
Our analysis shows, for each new vehicle, the projected annual and cumulative amount of depreciation over five years. Note that depreciation and resale value are two measures of the same element. A car’s purchase price minus depreciation equals a car’s resale value. By the same token, a car’s purchase price minus its resale value equals its depreciation. We project the future resale value of a car on the basis of several factors. We assume... Read More

What is the difference between new and used car ownership costs over the three year (2007-2009) period?
IntelliChoice's used car ownership costs cover the latest three used model years (the most likely years offered as certified under manufacturer pre-owned vehicle programs), but they are still based on a five-year projection of what a vehicle will cost to own and operate during that time. Therefore, a vehicle in the most recent used year is assumed to already have... Read More

Before You Buy
Buy a fuel-efficient car. Pay special attention to the fuel economy figures we post for every car on the site. Read More

Fuel is the one expense a car owner faces on almost a daily basis. Of course you can reduce your fuel costs by driving more conservatively and logging fewer miles, but that’s often easier said than done. You can also buy a fuel-miserly car instead of a gas hog; the data on our site will show you which is which. Read More

Before You Buy
Don’t reject a car just because our charts show a high expected repair cost. The cost of repair is often the smallest of the seven major ownership costs, since most cars today are very reliable.... Read More

One of the blessings of a new car is a warranty. If something goes kerplunk in the night, at least you won’t have to pay to fix it. As your car gets older you won’t have the assurance of a warranty. However, follow the maintenance advice in the preceding section and you'll keep repair costs - even on an old car - to a minimum.... Read More

Before You Buy
Many new cars are designed and built to minimize maintenance costs. For instance, many cars now feature long-lasting stainless steel mufflers and distributorless ignition systems. Refer to our analysis of overall maintenance costs for each new model, as well as costs... Read More

Automakers do sometimes build cars that should have “headache” written on the side. But happily, most modern cars, no matter the make or model, are darned impressive machines - especially if they’re given periodic care. Though new cars... Read More

Compare discount financing to a cash rebate if both are offered. “Buy now and we’ll give you $500 cash, or provide a 1.9% loan for four years.” Which should you choose? It depends on a lot of factors. You have to do the calculations to determine which option is more advantageous for you. (See also “Consumer Incentives.”) Read More

It is now time for us to repeat our brief accounting lesson. When we talk about finance costs, it's important to distinguish between what is actually a cost and what is not. Let’s say you bought a new car for $19,000. You no longer have the money, but you do have a car... Read More

Rest assured, the government will have its hand out as soon as you buy your new car. You’ll have to pay tax as well as license and registration fees. Furthermore, you will be required to pay some combination of taxes and/or fees every year for as long as you own the vehicle. Read More

Before You Buy
Choose your car carefully. Sports and specialty cars generally have the most costly claims records and are also favorites of thieves. Insurers frown on cars that offer less crash protection for drivers and passengers during an accident - often small imported cars. Insurers are also wary of cars with powerful engines that could get unskilled drivers into trouble. For example,... Read More

The only thing worse than paying for insurance is not having it when you need it. Insurance is the price you pay to protect yourself, your passengers and your car against unexpected losses. It’s required by law, and if you’ve ever insured a vehicle you know it makes up a substantial... Read More

Before You Buy
Choose a car with a historically low depreciation history.
Select a popular, highly regarded model, or a car from a prestigious automaker. Avoid less-well-known makes and offbeat models - or, based on recent trends, brands that may not be around in a few years! Read More

This is the big one - at least for most cars during the first few years they’re on the road. In fact, some cars depreciate as much as 20% or more during the first year alone! Read More

A "good value" is a vehicle whose cost to own and operate is less than expected. The lower the cost to own and operate compared to what is expected, the better the value. Value is a relative term, not an absolute term. The vehicle is performing better than the logical expectation. Read More

In our analysis, we utilize seven major ownership cost categories. All of the major ownership costs can be divided into two categories: standing costs and running costs. Read More