Diesel Vehicles are Less Expensive to Own

2013 Volkswagen Golf TDI (Volkswagen of America)

Although they often cost more up front, a new study indicates that diesel-powered cars, trucks and SUVs have lower ownership costs in the long run. In a press release, dieselforum.org says that diesel models cost $2,000 to $6,000 less to own over three to five years than comparable gas-powered vehicles. The study was conducted by the University of Michigan Transportation Research Institute for Robert Bosch LLC, which makes automotive parts for diesel- and gasoline-powered vehicles.
Diesel cars typically earn better fuel economy ratings than their gas-powered counterparts, but other variables are also at play when it comes to lower ownership costs. Autoblog writes, “The savings stem not just from improved fuel efficiency but also overall fuel costs and better retention of value, and take into account the added purchase price of a diesel engine over its gasoline counterpart.
The study finds that diesel-powered versions of small cars like the Volkswagen Golf and Jetta save their owners $5,013 and $3,128, respectively over the course of three years. Additionally, the Volkswagen Jetta SportWagen costs $3,389 less to own when equipped with a diesel engine.
The savings also translate to luxury cars and SUVs. Diesel versions of the Mercedes-Benz E-Class and M-Class save their owners $4,175 and $3,063, respectively, while the diesel-powered Mercedes R-Class costs $5,951 less to own. The diesel-powered Volkswagen Touareg and Mercedes GL-Class offer even bigger savings, with ownership costs that are $7,819 and $13,514 lower, in that order.
Some automotive journalists think that lower ownership costs will bolster consumer demand for diesel vehicles. The Los Angeles Times reports that the diesel-powered Volkswagen Jetta is “the third-most-considered vehicle by people shopping for alternative-fuel cars,” according to analysts at Edmunds.

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Car Ownership Costs Increase to More Than $9,100 Annually

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Owning and maintaining a car costs more today than it did in 1950. When AAA put out its first ‘Your Driving Costs’ report 63 years ago, a car that was driven 10,000 miles per year cost its owner 9 cents per mile. Fast-forward to 2013 and AAA’s latest study finds that the average sedan’s ownership costs are up to $9,122 per year or 60.8 cents per mile, assuming you drive 15,000 miles annually. That’s almost a two-percent increase compared with 2012.
“This year, changes in maintenance, fuel and insurance costs resulted in the increase to just over 60 cents a mile,” says John Nielsen, AAA Director of Automotive Engineering and Repair. Vehicle maintenance costs, which include the price of replacement parts, labor and buying an extended warranty, are up 11.26 percent, while fuel costs increased 1.93 percent compared with last year. AAA also reports that insurance costs for sedans rose 2.76 percent to an average price of $1,029 per year.
Depreciation costs are up too, as AAA reports a .78 percent increase to $3,571 per year. MSN Autos reports that “this is likely due to growth in new-vehicle sales, which has put more used cars in the marketplace. That in turn drops the resale value of older models in good condition.”
While these estimates apply to the average sedan, operating costs will vary depending on the type of car you own. Small sedans have the lowest costs at 46.4 cents per mile or $6,967 annually, while owners of large cars will shell at 75 cents per mile or $11,248 per year. At $11,599 per year or 77.3 cents per mile, four-wheel drive SUVs cost more to own than any other vehicles in the study.
If you’re looking for a car that’s a great value, check out our Best Car for the Money Awards, which highlight cars that combine the average price paid and five-year total cost of ownership data with information from our rankings.

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Auto Repair Costs are on the Rise

Photo courtesy of CarMD

Your car is getting more expensive to fix, at least according to the 2013 CarMD Vehicle Health Index. The study found that for the first time in six years, the average repair cost rose 10 percent to $367.84 on 1996 to 2012 model year vehicles. Replacement part prices went up six percent in 2012, while labor charges rose 17 percent. CarMD says that the Northeast region saw the largest increase, with the cost of repairs rising by 11.56 percent last year.
More than 161,000 repairs from 2012 were analyzed for the 2013 CarMD Vehicle Index Study, which were validated by the company’s network of ASE-certified technicians.
The study reports that the most common problem that triggers vehicle check engine lights is a bad oxygen sensor, which can cause as much as a 40 percent reduction in fuel economy. A loose gas cap was the second most common repair, followed by replacement of the catalytic converter, ignition coil, spark plugs and wires.
The most costly repair in the CarMD database affected Honda Civics and Volvos from the 2001 model year. CarMD reports that replacing the transmission assembly and reprogramming the electronic control module cost an average of $5,474. “Inspect engine oil for correct level and viscosity,” is the least expensive repair, which simply means it’s time to check your oil.
While CarMD indicates that repair costs are up, the study also points to some good news for car owners. The Vehicle Health Index reports that automakers are building cars and parts that last longer, and that car owners are getting better at handling minor car repairs themselves. Additionally, repair costs on hybrid vehicles have dropped, in part because more hybrid cars and SUVs are on the road, but also because more mechanics are qualified to fix them.

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