Top 10 least expensive vehicles to own

“It's a very long-term outlook of protecting the brand by protecting resale value,” says Honda spokesperson Chris Naughton.

The pillars of that program include striving for high quality and durability so its models will remain desirable even after they rack up lots of miles. Honda avoids building more cars than it can sell and adjusts its factory output to match consumer demand, Naughton says. It also avoids selling to car-rental and commercial fleets. Both strategies prevent over-supplying the market, which depresses used-car prices. Balancing supply with demand also negates the need for sales incentives, which reduce used-car values by reducing new-car values.

“We avoid at all costs being put in the position of stress merchandising,” Naughton says.

Korean automakers Hyundai and Kia each have one vehicle in the ranking — the Hyundai Accent places fifth and the Kio Rio seventh. But the brands aren’t as well regarded as Honda or Toyota, which likely contributes to their high depreciation rates — 77 percent for the Accent and 78 percent for the Rio.

Another Korean-made vehicle, the American-branded Chevrolet Aveo5, made the third spot on the list and also has a high depreciation rate, at 73 percent. The Dodge Caliber SE, in sixth place, and Chevrolet Cobalt LS, in eighth, are the only other domestic models in the ranking.

Five of the least-expensive-to-own vehicles hail from Japan, including the top-ranked Toyota Yaris Liftback, which carries a five-year predicted cost of ownership of $30,820.

Models with attractive low depreciation rates exist in all vehicle categories. But if being frugal takes priority above all other automotive concerns, consider one of the 10 vehicles on this list. In the slide show (see link below) you’ll find individual model descriptions along with Vincentric’s projected total cost of ownership after five years, including a breakdown of the six components that make up that total.

All are 2008 base models. The manufacturer suggested retail price (MSRP) and ownership costs shown with each model apply only to the most basic version of the vehicle. That usually means it has a five-speed manual transmission. If you add equipment or move up trim levels, ownership costs typically increase accordingly.

Cost estimates are based on prices from March 2008. Interest expenses assume a five-year loan at current rates, with a 15 percent down payment. Opportunity costs consider what owners would have earned if car expenses were placed into certificates of deposit instead. Insurance costs are for a typical driver under age 65 with a clean record. Depreciation assumes the vehicle is disposed of in a private party transaction. To compute fuel costs, Vincentric used a five-month weighted pump-price average. Each model's five-year cost of fuel is calculated by using EPA fuel-economy ratings as published in the agency's 2008 Fuel Economy Guide.

Go to the “slide show” link above to see the full list of the 10 least expensive vehicles to own.

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