Cheapest cars to own and run in Australia revealed

Aussies have a new tool to combat the rising cost of living with new information showing the cheapest and most expensive new cars to own and operate.

Help is on the way for budget-conscious Aussies on the hunt for a new car.

New research from the Royal Automobile Club of Victoria (RACV) has outlined the cheapest and most expensive new cars to own – and the differences can add up to hundreds of dollars a month.

The annual survey calculates the total cost of ownership including loan repayments calculated on a 100 per cent loan for five years, depreciation, government charges, registration, insurance, club membership and fuel or energy costs.

Each vehicle is assumed to drive 15,000km annually, which is the average according to the Australian Bureau of Statistics.

The MG3 is the cheapest car to own and operate in Australia.

The MG3 extra small hatchback is the cheapest new car to own and operate according to the research.

The MG3 Core costs $746.01 a month or $8970.30 annually. It is followed closely by the Kia Picanto S at $765,87 a month and the Kia Rio S at $868.21.

The most expensive car in this class according to the research was the Volkswagen Polo at more than $1000 a month. The difference is due to its higher overall purchase cost and consequent loan repayments.

Australians will soon be without one of the most affordable options on the market as Kia has announced that it will stop selling the Rio in Australia once the current model is replaced in the next year or so.

The Kia Picanto is another affordable option.

Jeff Ames, head of motoring products at the RACV, says car buyers will be evaluating running costs closely due to cost of living pressures.

“People should be pleased to know that the cost of owning and operating a car has dropped across seven categories in 2023 including small and medium cars, medium and large SUVs, people movers and light commercial vehicles,” says Mr Ames.

The cheapest SUV to run and own is the Hyundai Venue. It’ll set owners back $926.56 a month.

EV buyers looking for a bargain should consider the MG ZS EV Standard Range that costs $1172.76 a month.

The little Hyundai Venue is the cheapest SUV to buy and run.

Cheaper EVs are arriving in big numbers now, and the MG4 hatchback is the cheapest on the market, undercutting the MG ZS EV.

One of the categories that got dramatically cheaper was the mid-size SUV segment. The Honda CR-V was the cheapest car at $1161.36 a month, a decrease of close to $100 a month compared to last year.

This vehicle is in run-out and is priced sharply before a new model arrives soon, which counteracts the steep rise in interest rates over the past year.

Ute buyers looking for cheap monthly costs should consider the Isuzu D-Max two-wheel drive version costing $1364.67 a month.

Ute buyers on a budget should consider the GWM Cannon ute.

If a four-wheel drive ute is non-negotiable then it’s a small step-up to the GWM Cannon L dual-cab with monthly costs of $1388.98.

The electric LDV eT60 is by far the most expensive ute to own and run, costing an average of $2,243.64 a month.

Popular hybrid vehicles such as the Toyota RAV4 are more expensive to operate than their equivalent petrol-powered versions according to the data, as lower fuel bills weren’t enough to offset higher upfront costs and loan repayments.

A Toyota RAV4 GX petrol will cost $1,149.16 a month and the hybrid version costs $1,186.70.

Higher interest rates negate the fuel savings of hybrids.

The same can be said for the Honda Civic, with the hybrid costing about $180 more a month to own and operate.

Out of all 94 vehicles analysed, the Nissan Patrol Ti was the most expensive.

The seven-seat Ti version costs $2448.94 a month or almost $30,000 a year to own and operate.

It was one of the most expensive to register and insure and its V8 petrol engine drinks an average of $363 worth of fuel a month.

Originally published as Cheapest cars to own and run in Australia revealed