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| Decision Center | The cheapest cars to own in 2006
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Kiplinger's editors uncover the hidden ownership costs in the 2006 crop of new cars and sort out the least costly cars to own over five years.
By Kiplinger's Personal Finance Magazine
Finding a car you can afford to buy and a car you can afford to own are two different things.
There are plenty of budget-friendly sticker prices among the 2006 crop of new cars. But you need to look at more than what you pay to the dealer when searching for the best bargain. Service costs, insurance bills, fuel expenses and depreciation can easily take a bite out of your automotive budget.
We looked at these factors over five years of ownership to see which cars that cost less than $20,000 really are the least expensive.
Sticker prices are for the manual transmission model (nearly all cars in this price range charge extra for automatic) and come from Kelley Blue Book and Chrome Systems. They include destination charges. We based service costs, resale values, insurance costs and fuel-expense estimates on data provided by Vincentric, an automotive research firm.
You'll find more information on what these costs mean and how they figured into our analysis at the end of this article. You can find more information on any of the cars below using Kiplinger's Car Finder. And check out Kiplinger's 2006 Car Buyer's Guide for more on how to snag a good deal and shop smart.
Related news on MSN Money and Kiplingers
Scion xA
MSRP: $13,245
Service cost (5 year): $2,201
Insurance cost (5 year): $5,180
Resale value (5 year): 46%
Fuel cost (5 year): $6,918 This offshoot from the Toyota brand is already one of the least expensive vehicles available. But it drives to the top of the bargain pile thanks to a variety of other factors: It retains 46% of its value after five years, costs less than the category average to insure and maintain, and gets a thrifty 32 miles per gallon in the city and 37 on the highway.
A peppy 1.5-liter, 108-horsepower engine propels the four-door hatchback. Anti-lock brakes and power everything come standard. It also includes a CD player with satellite radio and MP3 capabilities.
Honda Civic DX
MSRP: $15,110
Service cost: $1,645
Insurance cost: $5,110
Resale value: 49%
Fuel cost: $7,114 Here's a good example of how "inexpensive" doesn't have to mean "cheap." The Civic costs $15,110 and is one of the most reliable cars on the road, according to Consumer Reports. Plus, it sports the lowest five-year service costs of all the cars in our price range, and it won Kiplinger's "Best New Car" honors this year, since Honda redesigned the Civic for 2006.
The redesigned Civic has a sleeker, more aerodynamic look, more power and more standard safety equipment -- including anti-lock brakes and head-protection airbags. Its 1.8-liter engine packs 140 horsepower and sips fuel to garner 30 mpg in the city and 38 on the highway. The car keeps 49% of its value after five years. As a total package, the Civic adds up to quite a value.
Toyota Corolla CE
MSRP: $14,545
Service cost: $1,868
Insurance cost: $5,180
Resale value: 44%
Fuel cost: $6,636 On the outside, there's nothing fancy about the Corolla. But this compact car holds an impressive distinction. Other than hybrids and diesels, it has the best fuel economy on the road: 32 mpg city and 41 highway. The Corolla also retains 44% of its value after five years, carries below-average service costs and makes Consumer Reports' "most reliable cars" list.
Good for commuting or just zipping around town, the Corolla is driven by a 1.8-liter, 126-horsepower engine. Air conditioning and CD player come standard, but anti-lock brakes and head-protection airbags cost extra.
Nissan Sentra
MSRP: $13,680
Service cost: $1,848
Insurance cost: $5,635
Resale value: 49%
Fuel cost: $7,661
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MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.
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