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A lot of people spend days and weeks trying to get the best car deal and completely overlook another major expense: service and repairs. Fortunately we’ve gotten our hands on some really compelling data that breaks down how much it will cost (in maintenance, unplanned repairs, service campaigns, diagnostics, software updates and warranty and recall fixes) for your vehicle.
These are estimates, but they come from more than 16 million vehicles across 356 models and more than $2 billion in service costs. Costs such as gasoline, collisions, insurance and local and state inspections are not included in any of the figures.
Let’s dive in!
The Cheapest Cars to Maintain 2020
Average 12-month in-service U.S. repair costs per vehicle
It should come as no surprise that Mitsubishi takes the top spot on the list of cheapest cars to maintain. A 2020 Mitsubishi Mirage costs only $51 per year to maintain. That’s insane!
Each of the vehicles on this list are expected to cost less than $100 per year in maintenance, unplanned repairs, service campaigns, diagnostics, software updates and warranty and recall fixes. That means they are VERY cheap to own.
The Most Expensive Cars to Maintain 2020
Average 12-month in-service U.S. repair costs per vehicle
2020
Porsche Taycan
$3,190.00
BMW M5
$1,362.00
Porsche 911
$1,329.00
Jaguar I-Pace
$1,286.00
Mercedes-Benz AMG GT
$1,253.00
BMW M8
$1,035.00
Audi R8
$976.00
Mercedes-Benz G-Class
$897.00
BMW8 Series
$865.00
Ram 4500
$845.00
Chevrolet Corvette
$802.00
Ram 3500
$798.00
Land Rover Defender
$787.00
Audi S5
$756.00
Mercedes-Benz GLS
$748.00
BMW M4
$727.00
Land Rover Discovery
$712.00
Porsche Cayenne
$707.00
Audi A6
$698.00
BMW X6
$675.00
BMW X7
$675.00
Audi Q8
$669.00
Porsche 718
$665.00
Mercedes-Benz GLB
$653.00
Jaguar F-Type
$651.00
Mercedes-Benz GLE
$647.00
BMW 7 Series
$646.00
Ram 5500
$628.00
Lincoln Aviator
$626.00
BMW M2
$618.00
Porsche Panamera
$611.00
Land Rover Range Rover Evoque
$596.00
Mercedes-Benz CLA
$596.00
Audi A7
$581.00
Land Rover Range Rover
$578.00
Mercedes-Benz CLS
$568.00
Mercedes-Benz S-Class
$566.00
Genesis G90
$563.00
Audi A5
$561.00
Mercedes-Benz A-Class
$549.00
BMW X4
$538.00
Land Rover Range Rover Sport
$533.00
Cadillac CT5
$526.00
BMW X5
$517.00
Audi Q7
$516.00
GMC Sierra 3500HD
$502.00
Infiniti Q60
$502.00
Ram 2500
$501.00
On the opposite end of the spectrum, these are the vehicles which have the highest annual cost to maintan. Every vehicle on this list is expected to cost more than $500 annually in maintenance, unplanned repairs, service campaigns, diagnostics, software updates and warranty and recall fixes.
These vehicles make great lease options because during the term of the lease they’ll be under the manufacturers warranty. The 2020 Porsche Taycan is expected to cost $3,190.00 per year in maintenance, unplanned repairs, service campaigns, diagnostics, software updates and warranty and recall fixes. That’s nuts!
The BMW M5 is the next closest vehicle and it’s not even in the same ballpark as the Taycan. The 2020 M5 will only cost you $1,300 and some change.
Extended Warranty Costs for the Cheapest Cars to Maintain
After looking at the data for the cheapest and most expensive cars to maintain, we thought it would be fun to see how much an extended warranty (which would cover most of these annual costs) would be.
To do this we manually received quotes from our extended warranty administrator, AUL for a 10 year, 100,000 mile extended warranty.
Vehicle
Annual Service Costs
10 yr/100k mile Warranty Cost
Mitsubishi Mirage
$51.00
$1,662
Mitsubishi Eclipse Cross
$59.00
$1,762
Mitsubishi Mirage G4
$63.00
$1,662
Chevrolet Sonic
$71.00
$1,320
Chevrolet Spark
$72.00
$1,220
Nissan NV
$74.00
$2,314
Buick Encore
$82.00
$1,492
Kia Sportage
$84.00
$1,320
Kia Elantra GT
$85.00
$1,320
Mazda CX-3
$87.00
$1,392
Kia Sorento
$88.00
$1,220
Honda Fit
$89.00
$1,220
Honda CR-V
$90.00
$1,320
Kia Sedona
$93.00
$1,220
Mitsubishi Outlander Sport
$94.00
$1,662
Hyundai Santa Fe
$95.00
$1,320
Chevrolet Trax
$96.00
$1,320
Mazda MX-5
$98.00
$1,392
Hyundai Tucson
$99.00
$1,220
Kia Optima
$99.00
$1,320
Keep in mind that each of these quotes includes CarEdge’s $500 profit margin, so the wholesale cost is actually the number you see minus $500. It’s interesting to see the variability between vehicles. The Nissan NV Van is inexpensive to own, however the extended warranty company charges significantly more than the other vehicles. Fascinating.
Extended Warranty Costs for the Most Expensive Cars to Maintain
Vehicle
Annual costs
10 yr/100k mile Warranty Cost
Porsche Taycan
$3,190.00
N/A
BMW M5
$1,362.00
$6,470
Porsche 911
$1,329.00
N/A
Jaguar I-Pace
$1,286.00
N/A
Mercedes-Benz AMG GT
$1,253.00
N/A
BMW M8
$1,035.00
N/A
Audi R8
$976.00
N/A
Mercedes-Benz G-Class
$897.00
$6,470
BMW8 Series
$865.00
N/A
Ram 4500
$845.00
N/A
Chevrolet Corvette
$802.00
$2,650
Ram 3500
$798.00
$2,108
Land Rover Defender
$787.00
N/A
Audi S5
$756.00
$6,620
Mercedes-Benz GLS
$748.00
$6,570
BMW M4
$727.00
$4,074
Land Rover Discovery
$712.00
N/A
Porsche Cayenne
$707.00
N/A
Audi A6
$698.00
$5,174
BMW X6
$675.00
$5,174
BMW X7
$675.00
$5,174
Audi Q8
$669.00
$5,174
When it comes to the most expensive vehicles to maintain we weren’t able to get extended warranty quotes for many of the options. This is because AUL simply doesn’t allow us to sell warranties on these expensive vehicles. That being said, it seems like there might be some actual bargains in this group. Again, each price reflects CarEdge’s $500 profit margin. The Corvette and Ram 3500 10 year, 100,000 mile extended warranties seem like a bargain. Even the BMW M5 does too.
These are just estimates, and to get a full quote you do need to enter a VIN and current odometer reading, but it is interesting to see how the cost to maintain a vehicle plays into the extended warranty company’s price quote.
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Do you remember when new cars cost less than $20,000? Well, those days are officially behind us. As of November 1st, 2021, there are only seven new cars that you can purchase for under $20,000. And, with used cars appreciating in value, there are even fewer used options below the “magic” $20,000 threshold.
The average new car price now tops $45,000. Finding a new car that is (dare we say) “affordable” is pretty much impossible. During the ongoing chip shortage, automakers cut their production of less expensive and lower margin vehicles. Instead, they allocated supplies towards their higher profit, more expensive vehicles.
As a result we have seen dramatic price increases among sub-compact and compact sedans and SUVs on the used car market. Finding a sub $20,000 new car that is actually in stock is borderline impossible. What under $20,000 cars are there? Let’s break it down.
Kia Rio
A base 2022 Kia Rio LX has an MSRP of $17,145. Depending on sales tax and dealer fees, you might be able to get “out the door” for less than $20,000 on a Kia Rio. The challenge will be finding one that’s available and on a dealer’s lot.
I found less than 10 Kia Rios in inventory and for sale in the United States under $20,000. This one for example was listed as available on Kia’s website, but when you ran a CarEdge analysis report on it it was obviously already sold.
Subaru Impreza
As surprise to some, the Subaru Impreza can be had for less than $20,000! All-in the total price (including dealer fees and taxes) will certainly be above the $20,000 threshold, however the base MSRP is just shy of $20,000.
Another surprise entry in the under $20,000 car category is the base Volkswagen Jetta. The cheapest configuration of the Jetta comes in at $19,990. Good luck finding a Jetta for less than $20,000 in inventory nationwide. During my research I was unable to find a single Jetta in inventory with an MSRP below $20,000.
Chevrolet Spark
The Chevrolet Spark sneaks into the under $20,000 car club. During my research, I was able to find two Chevy Sparks for sale under $20,000 that are actually in inventory right now in the entire United States.
If you’re looking for an under $20,000 option, the Chevy Spark is a legitimate option in today’s market.
Mitsubishi Mirage
I was able to find hundreds of Mitsubishi Mirages for sale in the United States for less than $20,000. Crazy enough, used Mirages are actually selling for close to what you can purchase a new one for.
The Mitsubishi Mirage is the used car that has appreciated in value the most so far in 2021 as a used vehicle. Up more than 50% in value.
Hyundai Venue
The Hyundai Venue, which came to market for the 2020 model year, is another under $20,000 options for SUV shoppers. At $19,935, the Venue is an affordable option for consumers.
Sadly, I could not locate a single Hyundai Venue in inventory that was listed for less than $20,000.
Nissan Versa
Last but not least on the list of under $20,000 you can buy in 2021 … The Nissan Versa. This subcompact is comparable to the Mitsubishi Mirage, and it’s in inventory too!
Let us help you buy your under $20,000 car
If you’re thinking about buying a car in today’s challenging market, let CarEdge help you. Whether it’s our professional car buying coaches, email templates you can use to negotiate with the dealer, or community forum with support and suggestions, we’re here to help you.
Buying a car is tricky. After negotiating a fair selling price, you need to be ready to go to battle for round two; negotiating a fair auto loan rate. Many car buyers think, “I’ll negotiate the selling price of the vehicle, and then I am all set!” This couldn’t be further from the truth.
Most don’t realize that they can negotiate the interest rate on a car loan. You DON’T have to take the financing offer from the dealership. Consumer Reports recently published an in depth investigative piece on auto loans and how they take advantage of consumers.
Today we’re going to walk you through how you can get a lower auto loan rate. No gimmicks, no ads, no BS, just the information you need to be informed the next time you finance a car purchase.
When you buy a car you have many options for how you pay for it. Some people (if they have the means for it) like to pay in cash. Others (on new vehicles) like to lease. Most of us will end up financing the purchase of a vehicle.
This means we take out an auto loan. The bank pays the seller, and we then pay the bank for a set period of time. The bank makes money by charging you (the customer) an interest rate. On each of your monthly payments for the loan you are paying down the principal (the total loan amount) and interest (the money the bank makes).
That’s a super simplified view of financing a car. Let’s focus our attention on what options you have to secure the BEST auto loan rate.
Car dealership loans
One option is to take the financing offer a dealership provides you with. This may not be your best option. If you’ve bought a car before you know at a certain point the salesperson is going to ask you to fill out a credit application. By filling out their credit application you’re giving the dealership the opportunity to contact multiple financial institutions to see what loans they can get you approved for.
This practice of sending your information out to many banks is sometimes referred to as “shotgunning”.
The dealership’s finance manager will see what you got approved for and then likely “mark up” the interest rate. Remember, the interest rate is the profit the bank makes for having made the loan. Well, the dealership can make money too by increasing the interest rate above what the bank approved you for.
This is sometimes referred to as “holding points”. If you get a financing offer from a car dealership, and it is not a special rate from the manufacturer (i.e. zero percent financing), then it likely is a marked up interest rate. Remember, this is likely NOT the best auto loan rate you can secure.
Bank and credit union car loans
Coming into a car dealership with a pre-approval from a bank or credit union for your car loan is a smart decision. In advance of purchasing your vehicle you can contact your local bank or credit union to see what financing offers they can provide you with.
Credit unions are known for having very competitive used card loan interest rates. You should get a quote from an outside financial institution before going to the dealership.
More and more frequently, especially as the chip shortage has drastically reduced new car inventories, we have heard from CarEdge Community members that dealerships are saying “You have to finance through us if you want to buy this car.” While this isn’t illegal, it certainly is unethical. That being said, as consumers we have a way to combat it.
To get the lowest auto loan rate possible, it may make sense to take the dealership’s finance offer and then immediately pay off, or refinance the car loan.
If you are going to do this, do not tell the dealership. The dealership will receive a chargeback on the loan they placed (aka it will cost them money), however you are well within your right to refinance your loan as quickly as you’d like.
How to refinance a car loan
The steps to refinance a car loan are quite simple. There are more and more companies that have entered the refinance space. It’s important that you understand how refinancing companies make money so that you can be informed as you go through the process.
Refinance companies do not make money by placing you in a loan. Instead, refinance companies make money by selling their customers ancillary products (think extended warranties, insurance policies, etc.)
If you’re going to refinance your car loan, then be aware that the refinance company will try to sell you their insurance products. As always, be sure to negotiate the price of those products if they interest you, and get a quote from CarEdge for the extended warranty so that you have leverage.
General Motors reported net income that was 40% lower than the same period last year. Ford’s net income was off 24%, and Volkswagen’s fell 12%. As you know by now, no automaker has been able to sidestep the effects of the ongoing chip crisis. Every automaker has faced production challenges, with many OEMs shutting down their manufacturing plants for weeks at a time.
Which automakers have been hit the hardest from the chip shortage? With Q3 results in hand, and a myriad of other data sources to draw from, it becomes clear who is faring the best and who is faring the worst. Since GM, Ford, and Volkswagen all reported their third quarter earnings this week, we’ll focus our attention on them.
Let’s dive in.
GM is really struggling
General Motors’ Q3 results were disappointing. Compared to their peers, net income fell more than expected (down 40% year-over-year). That’s not what is most concerning for the company. It appears as if GM is having an identity crisis. The brand, once known and revered for its American made qualities, is now struggling with how to become an electric vehicle manufacturer.
CEO Mary Barra is demonstrating a masterclass is projecting confidence, however when you take a peek “under the hood” it becomes clear that GM is struggling. First and foremost they were hit the hardest and caught most off guard by the chip shortage.
Inventory of GM products (Chevrolet, Buick, GMC, and Cadillac) has suffered more than their peers so far in 2021. For example, in Texas Chevy inventories are down 80% year-over-year, whereas Ford is (only) down 66%. You can explore and drill down on state-by-state inventory levels by brand here.
General Motor’s plant utilization was just 60 percent in the third quarter. This is down from 112 percent a year earlier. At that time, multiple plants were running on overtime to make up for the shutdowns at the start the global pandemic. For the year, GM’s capacity utilization rate is 81 percent, down from 85 percent through three quarters of 2020.
GM recently reported that they have received enough chips to finish production of their partially built 2021 model year inventory. This is a good thing, however one challenge the automaker (and their dealer network) may face is “lot rot” associated with those vehicles that had been siting for 6+ months waiting for their final modules to be installed. GM has plenty of challenges in front of them.
Recently GM announced a massive investment in electric charging stations. The automaker appears to be going all in on electric vehicles. With this announcement, plus bringing back the Hummer in electric form, GM is certainly in a period of transformation. Will they come out on the other side as a better and stronger company? Only time will tell, however, if their recent performance is any indicator of what the future holds, I wouldn’t be holding my breathe.
Ford’s struggles continue
If there is an automaker who is trying to make GM feel better, it would be Ford. Their struggles have been well documented so far in 2021. They too were caught off guard by the chip shortage, and their response was not much better. Couple this with a slew of quality control issues, and you have a recipe for poor earnings!
Ford’s Q3 net income dropped 24% year-over-year. We can again look at our state-by-state dataset to see that their inventory levels nationwide are down considerably. We also have access to market days supply data from Ford.
Nationally, inventory levels are off ~66% from where they typically would be.
There is light at the end of the tunnel for Ford though. At the beginning of Q3, Ford had approximately 70,000 unfinished vehicles waiting for chips. Ford CFO, John Lawler said they ended the quarter with 27,000 partially-built vehicles, and that the number should drop below 5,000 at the end of the year.
Ford, just like GM is investing mightily in becoming an electric vehicle company.
Volkswagen struggles, but does better than their peers
VW Group’s net income dropped 12% in Q3 year-over-year, a much more modest decline than their American peers. VW, just like GM and Ford has struggled to produce enough vehicles to meet consumer demand. To preserve profit margin, VW has allocated resources towards the production of higher profit vehicles (Audi and Porsche).
What does that mean in practice? Well, at VW’s main factory in Wolfsburg, Germany they currently have an order backlog of more than 130,000 Golf models. That equals roughly four months of production and comes on top of 110,000 orders for the brand’s best-selling Tiguan SUV that are also on backorder.
VW Groups global deliveries were down 24%, and inventory levels of their more affordable brands have seen the biggest declines.
As you may remember, Hertz nearly went bankrupt earlier in 2021 as the rental car company sold off its fleet in an attempt to stay solvent. Now, the company, on the other side of bankruptcy is betting big on electric vehicles.
With their order from Tesla, Hertz’ rental car fleet will now be 20% electric vehicles globally. Hertz is also investing to install thousands of EV chargers nationwide. Hertz customers that rent a Tesla Model 3 will have access to Tesla’s supercharging network, however Tesla Supercharger Idle Fees are not included in Hertz rental car payments.
Hertz first introduced EVs in their rental car fleet in 2011. They were the first rental car company to add EVs to their fleet.
The Tesla Model 3 Standard Range Plus costs $41,990. This suggests that Hertz has paid near list price for their 100,000 vehicle order. This doesn’t come as too much of a surprise as we expect all manufacturers will increase their base MSRP for the next model year because of myriad production issues. If Hertz did pay 2021 MSRP for their order that may actually represent a significant discount relative to the price increase we expect to see next year for the Model 3.
Hertz has also now recently announced deals with Carvana and Uber to provide short-term leases of their Tesla fleet as well as to sell them once Hertz is done with them. More on that here:
CarEdge Insights
