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Imagine cutting your fuel bill in half, without making the sacrifices that come with the EV lifestyle. Have you ever experienced the joy of owning a car that routinely gets 40, maybe even 50 miles per gallon? If not, we’re here to change that. In this guide, we’ll introduce you to the 5 best fuel-efficient cars for 2024.
We’ve selected five of the top new car models based on fuel efficiency, considering other important factors like reliability, comfort, and cost of ownership as tie-breakers. Fuel efficiency is measured in miles per gallon (mpg). We’ve included the annual fuel cost calculated for the average American driver traveling 15,000 miles per year, paying $3.50/gallon for gas. For comparison, the average American light-duty vehicle gets 25 miles per gallon, and costs $2,100 to fuel each year.
Without further adieu, let’s dive in.
The 5 Best Fuel Efficient Cars (2024 – 2025)
For anyone familiar with fuel-efficient car brands, the winners should come as no surprise. Toyota and Honda have long been leaders in hybrid technology, consistently delivering cars that top the charts in fuel efficiency. Hyundai is also making a strong push in the hybrid market, proving that fuel economy doesn’t have to come at a premium price.
1. 2024 Toyota Prius
Fuel Efficiency: 57 mpg (57 mpg city, 56 mpg highway)
Annual fuel cost: $921
MSRP: $27,950+
Why We Love the Prius: More than two decades after its American launch, the Toyota Prius continues to be a pioneer in fuel efficiency. With its latest model, Toyota has once again set the standard for hybrid technology. The 2024 Prius offers impressive fuel economy, a MUCH better exterior and interior design, and a comfortable interior, making it a top choice for those looking to save on fuel without sacrificing style or comfort.
Fuel Efficiency: 50 mpg (51 mpg city, 49 mpg highway)
Annual fuel cost: $1,117
MSRP: $28,400+
Why We Love the Camry Hybrid: The 2025 Camry, now with hybrid as the standard powertrain, combines Toyota’s legendary reliability with excellent fuel efficiency. The Camry Hybrid offers a spacious interior, advanced safety features, and a smooth ride, all while achieving up to 50 mpg in combined city/highway driving. For the 2025 model year, the Camry receives a major aesthetic update for the first time since 2018. With plenty of room for four, better looks, and Prius-level fuel economy, the 2025 Camry is definitely one of the best fuel-efficient cars.
Fuel Efficiency: 50 mpg (49 mpg city, 52 mpg highway)
Annual fuel cost: $1,050
MSRP: $26,250+
Why We Love the Elantra Hybrid: If you’re in the market for a compact sedan with modern looks and an affordable price, the Hyundai Elantra Hybrid leads the pack with 50 mpg. This compact sedan offers more than just fuel efficiency; it comes equipped with a modern design, advanced technology, and a comfortable interior. The Elantra Hybrid proves that you can enjoy a high-tech driving experience while keeping fuel costs low.
Fuel Efficiency: 48 mpg (50 mpg city, 47 mpg highway)
Annual fuel cost: $1,094
MSRP: $28,750+
Why We the Civic Hybrid: The Honda Civic Hybrid makes a strong return with the 2025 model, delivering impressive fuel efficiency at 48 mpg. Known for its reliability and sporty handling, the Civic Hybrid also offers a range of advanced safety features at an affordable price. It’s a smart choice for those looking to spend less on fuel without sacrificing a pleasant driving experience.
Fuel Efficiency: 42 mpg (45 mpg city, 38 mpg highway)
Annual fuel cost: $1,250
MSRP: $28,220+
Why We Love the Corolla Cross: The Toyota Corolla Cross Hybrid combines the practicality of an SUV with the fuel efficiency of a hybrid. Achieving 42 miles per gallon, this crossover has quickly gained a strong following. Consumer Reports ranks it as the #2 subcompact SUV on sale today, right behind the Subaru Crosstrek.
While fuel efficiency is undeniably important when selecting your next vehicle, it’s just one piece of the puzzle. You’ll want to take into account other critical factors like reliability, comfort, safety features, and the overall cost of ownership to make a well-rounded decision that aligns with your unique needs and preferences.
You don’t have to navigate car buying alone! Your CarEdge Concierge is here to listen to your needs, find the perfect car, and negotiate the price on your behalf. It’s the easiest way to buy a car in 2024, hands down!
Consider this shocking statistic: the average cost to own and operate a new car in 2024 was $12,297. Cars are expensive, and the financial burden doesn’t stop at the dealership. From high-interest rates to soaring insurance premiums and maintenance costs, owning a car involves many expenses that can drain your wallet.
Understanding the total cost of car ownership is crucial for budgeting and financial planning. In this guide, we’ll uncover the hidden costs of owning a car, helping you make informed decisions and avoid financial surprises.
Depreciation From Day One
This is often the largest hidden cost of car ownership. A new car can lose a significant portion of its value within the first few years of ownership, which impacts its resale value. Within the first year of ownership, many cars will lose up to 20% of their value. After that, they may lose about 15% more per year until they are roughly five years old. Depreciation slows each year after, but by this point, the car has already lost over 50% of its value.
This is a major reason why financing a new car for more than 60 months (5 years) is strongly discouraged.
Insurance premiums are a substantial ongoing expense, especially for younger drivers, those with less-than-perfect driving records, or owners of cars that are expensive to insure. Even credit scores impact auto insurance rates.
Car insurance rates soared 24% in 2023, pushed higher by rising repair costs, natural disasters, and more frequent car accidents. Rising repair costs are largely due to higher car prices that automakers have done their best to normalize since 2021.
How much should the average driver expect to spend on car insurance in 2025? The national average premium for a full-coverage policy now stands at $2,019 per year. That comes out to $168 per month on average. State-minimum liability insurance averages at $1,154 annually, but offers far less protection in the event of an accident.
Year after year, auto insurance rates continue to rise faster than wage growth. In other words, you’re not the only one noticing that insurance premiums are taking up more of your paycheck.
Maintenance and Repairs
Regular maintenance is necessary to keep a car running efficiently, but the costs can add up. Unexpected repairs can be particularly costly and are often unpredictable. In 2023, drivers averaged 9.83 cents per mile driven on maintenance, repairs and tire replacement, according to AAA. For the average American driving 15,000 miles per year, that adds up to $1,474 per year on car maintenance.
The cost of car maintenance is so important to the American economy that the Federal Reserve keeps tabs on prices. Their data shows that motor vehicle parts and equipment costs have skyrocketed since the end of the COVID-19 pandemic. Check out their graph below…
It’s important to understand that maintenance costs vary by make and model. It IS possible to avoid the costliest repairs by selecting a more reliable vehicle with less expensive parts and repair costs.Compare auto maintenance costs with our FREE tools.
Fuel, No Matter What Kind
The cost of fuel is a regular expense that can fluctuate wildly. For those who drive more or have less fuel-efficient vehicles, this cost can be significant. Consider the following: the average car in America gets 25 miles per gallon in 2025. At $3.50/gallon, the typical American driver traveling 15,000 miles per year will spend $2,100 each year on fuel. Hybrid vehicles that often get over 50 miles per gallon can cut this expense in half.
What about electric vehicle fuel costs? Charging at home is always cheapest, and is certainly cheaper than gas. However, public charging can get expensive. At typical American electricity rates, it costs between $10 and $20 to charge an EV battery from empty to 100% full at home.
Public fast chargers vary more in price compared to gas prices. A good deal for EV charging is generally under $0.45 per kilowatt-hour of electricity. Sadly, some EV charging stations charge upwards of $0.65 per kWh. Imagine if gas prices ranged from $3.00/gallon to $5.00/gallon in the same city. Crazy, right? See how much EV charging costs in your area with PlugShare.
Considering that the average EV battery has a 75 kWh capacity, public charging can get just as expensive as gasoline, if not more costly per mile driven. The good news is that most EV drivers do the vast majority of their charging at home, and save hundreds of dollars in fuel costs annually versus a gas car.
Financing: Higher Car Prices Mean Higher Interest Payments
Interest on auto loans adds to the total cost of owning a car. Longer loan terms, higher car prices, and today’s high interest rates all make auto loan interest payments soar. In 2025, the average interest rate for a new car loan is 9% APR, while used car loans average 13% APR. Financing a new car over a typical 60-month term can result in paying thousands of dollars in interest, unless you take advantage of new car financing offers.
If you extend the loan term to 72 or even 84 months, the interest costs can skyrocket, making the car significantly more expensive in the long run. This is why it’s crucial to shop around for the best financing rates and consider shorter loan terms if possible. Better yet, take advantage of the low-APR offers available today.
This free auto loan payment calculator calculates the total interest paid over the life of a car loan. Play around with the interest rate to see how big of a difference APRs can make for your payment and total cost of ownership!
State and Local Taxes
Sales tax, registration fees, and annual renewal fees can add up, especially when they are not anticipated in the budgeting process. Each state has its own set of taxes and fees, which can vary widely. For example, some states have annual property taxes that apply to vehicles, adding another layer of cost to car ownership. Additionally, many states charge an extra annual registration fee for electric vehicles and hybrids to compensate for lost gas tax revenue. This fee can range from $50 to over $200 per year, depending on the state.
Understanding these costs ahead of time can help you budget more accurately and avoid surprises. Be sure to check your state’s specific vehicle tax and fee structure before purchasing a car.
The Total Cost of Car Ownership Is Rising
Owning a car comes with many hidden expenses that can add up quickly. From steep depreciation and insurance premiums to maintenance, fuel, financing, and taxes, these expenses can significantly impact your budget. In 2025, higher insurance premiums and climbing maintenance costs are adding to the total cost of car ownership. Budgeting for these expenses matters now more than ever before.
By understanding these hidden costs, you can make more informed decisions and better prepare for the true cost of car ownership. Remember, doing your due diligence and researching all potential expenses will save you from unexpected financial strain down the road.
👉 Tired of car shopping hassles? Let us handle it for you with our CarEdge Concierge service. Our experts will find the perfect vehicle, negotiate the best price, and take care of all the details, saving you time and money. Learn more about CarEdge Concierge, the #1 car buying service in America.
Buying a car is a process that’s full of decisions, many of which can drastically alter your out-the-door price. Deciding whether to purchase add-ons simply adds to the stress of it all. Most car buyers are offered an “extended warranty,” but it’s a term that is too often used in a misleading way. What are extended car warranties, and when do you need one? Let’s dive into what extended warranty coverage entails, whether you need one, and how to choose the best option for your vehicle without breaking the bank.
What Is an Extended Warranty?
An extended warranty is a service contract that covers certain repairs or services after the original manufacturer’s warranty expires. However, the term is frequently used incorrectly to refer to vehicle service contracts (VSCs) sold by third parties.
A true extended warranty can only be provided by the vehicle’s manufacturer or dealer. Vehicle service contracts, on the other hand, are often sold by third-party companies and cover repairs in addition to the original warranty.
Both extended warranties and vehicle service contracts protect you from unforeseen repair expenses; the key difference is who sells you the plan – the car’s manufacturer or a third party.
Do I Need an Extended Car Warranty if I’m Buying a New or Used Car?
Whether you need an extended warranty depends on your personal risk tolerance and the reliability of the vehicle you are purchasing. Here are some factors to consider:
New Cars: New vehicles come with a manufacturer’s warranty that typically lasts for 3 to 5 years, with mileage limitations as well. Here’s an example from Toyota. It’s important to check the warranty term for the vehicle you’re considering buying. If you plan to keep the car beyond this period and want extra peace of mind, an extended warranty or VSC might be a good option.
Used Cars: For used cars, especially those without any remaining manufacturer’s warranty, an extended warranty can provide valuable protection against unexpected repair costs. However, it’s important to consider the vehicle’s reliability and your willingness to pay for potential repairs out of pocket. For used cars, you can often get a much lower rate for a vehicle service contract from a third party.Get your quote in seconds with CarEdge.
What Coverage Should an Extended Warranty Provide?
When evaluating an extended car warranty, consider the following coverage details. The same rings true for vehicle service contracts:
Duration and Mileage: Ensure the warranty covers an adequate period and mileage that suits your needs and driving habits.
Exclusions: Understand what is not covered, such as wear-and-tear items and regular maintenance.
Deductibles: Check the deductible amount and whether it applies per visit or per repair. A high deductible may change your mind about the value of the coverage.
Additional Benefits: Some warranties include extras like roadside assistance and rental car reimbursement.
Should I Buy an Extended Warranty at the Car Dealership, or Somewhere Else?
While car dealerships often offer extended warranties, they typically come with significant markups. Here are your options:
Dealership: Convenient but usually more expensive. Be sure to ask if the warranty is from the manufacturer or a third party, and get a warranty quote from CarEdge to compare rates and terms, no matter what!
Manufacturer: You can often buy an extended car warranty directly from the manufacturer, sometimes even after the original purchase. But is it a better deal? Compare terms, coverage, and exclusions, along with the price.
Third-Party Providers: Many third-party companies sell vehicle service contracts. While these can be cheaper, it’s crucial to research the provider’s reputation and read the contract carefully to understand what is covered and what is not. These extended warranty and VSC providers are A+ rated from the BBB.
The Takeaway: Consider Coverage Details and Risk tolerance
Understanding what an extended warranty is and whether you need one can help you make an informed decision when purchasing a vehicle. Remember to consider your risk tolerance, the reliability of the car, and the coverage details of the warranty (or vehicle service contract). By doing your due diligence, you can find the best option that provides peace of mind.
Tired of car shopping hassles? Let us handle it for you with our CarEdge Concierge service. Our experts will find the perfect vehicle, negotiate the best price, and take care of all the details, saving you time and money. Learn more about CarEdge Concierge, the #1 car buying service in America.
Buying a car is a big deal, and it’s normal to have a lot of questions. Whether you’re a first-time buyer or have been through the process before, knowing what to ask can make everything a lot smoother. Here are some common questions every car dealer should be prepared to answer, so you can feel confident and informed about your purchase. Remember, knowing the right questions to ask when buying a car can make all the difference. Knowledge is power when it comes to buying a car in 2024!
What is the Out-the-Door Price of the car?
Why it’s important: One of the most important questions to ask when buying a car is about the total price, commonly referred to as the ‘Out-the-Door Price’. Knowing the OTD price, including taxes, fees, and any add-ons, helps you understand the full financial commitment. A reputable dealer should provide a clear breakdown of these costs. Try our free Out-the-Door Price Calculator to get a feel for the numbers to expect.
How Long Has It Been On the Lot?
Why it’s important: First of all, knowing how long a specific VIN has been waiting for a buyer gives you an instant snapshot of the negotiability. The longer a car sits, the more car dealers are willing to cut you a deal. Dealerships finance their inventory, and these ‘floorplanning costs’ add up quickly in today’s high-interest environment.
👉 Unlock days on the lot, market supply data, and local price trends with CarEdge Insights, now including invoice prices!
What manufacturer or dealer incentives are available?
Why it’s important: Understanding the available APR offers, cash discounts and rebates, or lease specials can help you make an informed decision. Sometimes, the salesperson may not mention all offers unless you inquire. Asking about what incentives are available and when they expire is one of the essential questions to ask when buying a car.
Can I take the car for a test drive?
Why it’s important: A test drive allows you to experience the car’s performance, comfort, and features firsthand. A reputable dealer will always allow a test drive, giving you the chance to ensure the car meets your expectations. No test drive? No deal!
Why it’s important: Understanding the terms of the warranty is essential for knowing what is covered and for how long. Asking detailed questions about the warranty coverage, including any exclusions and the duration of the coverage, can help you make an informed decision.
It’s important to ask 1) who the extended warranty is managed by (for example AUL, Endurance, or one of the other companies), 2) the duration of the coverage (mileage and time period), 3) covered components (the details matter, feel free to ask for the contract), 4) the deductible amount if you file a claim, and 5) if roadside assistance is included.
Why it’s important: For used cars, a vehicle history report includes information about accidents, repairs, and previous ownership. This report is crucial for assessing the car’s condition and history, making it one of the key questions to ask when buying a used car.
If you’re shopping at a dealership, never pay for this report. It should be offered free of charge. If it’s not available, that’s a red flag! We’d advise you to look elsewhere, no matter how ‘perfect’ the car seemed.
Can I have the car inspected by an independent mechanic? (Used Cars)
Why it’s important: Having the car inspected by an independent mechanic is especially important for used cars. The industry term for this is a Pre-Purchase Inspection (learn more about PPIs here). This inspection can reveal any potential issues that may not be apparent during a test drive.
If the dealer shows any hesitation about letting you get the car inspected by an independent mechanic (ie one that’s NOT working at the dealership), there may be something they’re hiding. What good is a used car if you end up needing thousands of dollars in maintenance when you drive it home?
Skip the Dealership – There’s a Better Way to Buy
Navigating the car buying process can be overwhelming, but equipping yourself with these questions to ask when buying a car can help you feel more confident and informed. Understanding the OTD price, days on the lot, incentives, and other crucial details ensures you make a smart buying decision
Tired of car shopping hassles? Let us handle it for you with our CarEdge Concierge service. Our experts will find the perfect vehicle, negotiate the best price, and take care of all the details, saving you time and money. Learn more about CarEdge Concierge, the #1 car buying service in America.
When choosing the best cars for teen drivers, it’s crucial to find a balance of safety, reliability, and affordability. Here, we highlight the top used cars for teenagers, focusing on models that are 3-5 years old and excel in these areas. These cars are reliable, safe, and perfect for learning to drive. Let’s explore the top picks, including fuel-efficient hybrids, all-wheel drive crossovers, and the best EV for teen drivers, along with their 2024 prices.
Toyota Prius
CR Reliability Rating:77/100 Average Selling Price: $21,554
Why it’s great: 52 miles per gallon, 5-star crash test ratings, and excellent reliability scores from Consumer Reports… What more could you want from a first car? The Toyota Prius is a fantastic option for teen drivers, offering a budget-minded option that is sure to discourage the need for speed. The world-renowned Prius hybrid also comes equipped with a suite of safety features, like emergency braking with pedestrian detection and lane-keep assist. From 2019 onward, the Prius has even been available with all-wheel drive.
CR Reliability Rating:71/100 Average Selling Price: $19,604
Why it’s great: The Honda Civic has long been a favorite among drivers for its blend of reliability, efficiency, and sporty handling. It provides a confident driving experience powered by a turbo engine, while maintaining excellent fuel economy. The Civic is a great choice if your teen driver will be merging onto a freeway often. The Civic’s robust safety features and great crash test ratings make it a great choice for a teen driver.
CR Reliability Rating:87/100 Average Selling Price: $21,303
Why it’s great: It’s a legendary commuter car, but the Toyota Camry is also perfect for getting comfortable behind the wheel. With a Consumer Reports reliability rating of 87/100 for the 2021 Camry, it’s one of the most dependable used cars out there. Safety features like lane-departure warning, lane-keep assist, forward-collision warning and automated emergency braking come standard with the Camry. With a great reputation, resale values are strong should your teen driver need to upgrade years down the road. The Camry’s spacious interior, smooth ride, and famous reliability make it a great vehicle for new drivers.
CR Reliability Rating:80/100 Average Selling Price: $21,917
Why it’s great: If you prefer a SUV-like driving experience for your teen without sacrificing safety, a used Subaru Forester is a top choice. The Forester comes with standard all-wheel drive, safety features like automatic emergency braking, and excellent visibility of the road. Its high reliability ratings, attainable price, and strong resale value all strengthen the Forester’s reputation as a top pick for teen drivers.
CR Reliability Rating:87/100 Average Selling Price: $28,040
Why it’s great: For those looking for a touch of luxury, the Lexus UX offers a premium driving experience with the reliability that Lexus is known for. As the smallest model offered by the Toyota-owned luxury brand, it’s easier to command on the road than some of the larger offerings. The UX comes packed with advanced safety features like blind-spot monitoring and automatic emergency braking. As you’d expect from Lexus, the UX features a comfortable, high-quality interior with modern tech. While it’s on the pricier side, its blend of luxury and safety makes it a compelling choice for a teen driver.
CR Reliability Rating:78/100 Average Selling Price: $27,522
Why it’s great: EVs can be great for new drivers, but some are far better than others. Most parents and driving instructors would agree that it’s not smart to hand an EV with sports car capabilities to a teen driver, but not all electric vehicles are quite so fast. The Volkswagen ID.4 (2022 and onward) is a well-reviewed electric crossover with great range, good charging speeds, and 5-star safety ratings. The ID.4 even wins Top Safety Pick Plus honors from the IIHS.
What makes the ID.4 a better EV for teen drivers that say a Tesla? Simply put, the ID.4 drives more like a traditional car. It lacks the Corvette-like acceleration that you’ll find in a Model 3 or something similar, but will still merge onto a highway with ease. Think of the VW ID.4 as a safe, spacious and affordable no-frills EV for teen drivers.
Choosing a car for your teen driver involves balancing safety, reliability, and affordability. These crossovers and sedans are all excellent choices that meet these criteria. Whether you’re on the hunt for a simple crossover, a bit of luxury, or a good starter EV, these cars provide the most value for new drivers, especially teenagers.
Tired of car shopping hassles? Let us do it for you with our CarEdge Concierge service. Our experts can find the perfect vehicle for your needs, negotiate the best price, and handle all the details, saving you time and money. Learn more about CarEdge Concierge, the #1 car buying service in America.
States eligibile for below invoice pricing and 100% free delivery:
Alabama, Arkansas, Texas, Oklahoma, Florida, Georgia, Kentucky, Louisiana, Maryland, Delaware, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia.
What if I don’t live in these states?
If you're outside these areas, don't worry! We're committed to making sure everyone can enjoy our deals. Although the delivery fee will not be waived, you can still purchase from CarEdge and either pay for shipping or coordinate pickup at a participating dealer.
Our concierge service costs $999 plus an optional shipping fee (based on distance or pick-up).
To get started, pay the one-time payment of $999 and a CarEdge concierge will start by negotiating the vehicles in your favorites.
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Get the best deal
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