Hello OzBargainers! I am on a search for the most OzBargain Car: the car with the cheapest total annual cost whilst considering VALUE for MONEY. So no, I'm not after a 2000 Toyota Corolla that has done 270000 km's and is worth $1500 today and will probably be worth $500 in 10 years time.
What I mean is: I don't mind the the cost of the initial outlay as long as the car can retain its value over the years. Of course, the lower the initial capital expense, the better, due to the opportunity cost of it sitting in a High Interest Savings Account or other financial assets. But that is besides the point.
With that being said, the following are my requirements:
- Must: Hatch form factor, automatic, something with four wheels and won't kill me, 0-100km in <10s
- Really Like: Climate control, reverse sensors, HID's, fuel efficient for expected 5000-10000km of city driving
- Like: Bluetooth audio, keyless entry, exciting safety features (lane keep assist, collision detection, blind spot detection, etc.)
A car's cost (for most of us) is comprised of the following factors:
- Depreciation
- Maintenance/Repairs
- Registration and CTP
- Fuel Economy
- Insurance Costs
To further analyse this, the following is my thoughts on each factor. Please correct me if I'm wrong.
- Depreciation
a) New cars obviously depreciate more, so I will be looking to buy used
i) From my research, significant depreciation occurs in the first 1-3 years of ownership
b) I have also looked into appreciating cars (yes, high yield investment vehicles do exist!!) but this requires very specialised knowledge and most of these rare cars are not only hard to find but typically cost much more to maintain so it doesn't make financial sense. Furthermore, we are on the search for an OzBargain car, as the Swiss say: Unus pro omnibus, omnes pro uno (one for all and all for one). - Maintenance/Repairs
a) Looking to avoid European as mostly** Japanese/Korean cars require less maintenance and parts/servicing are less expensive on average - Registration and CTP
a) I am based in NSW, so the registration cost is based on the weight of the vehicle - aiming for a tare weight of 1155-1504 kg to have a registration fee of $310 (2020)
Ref: https://www.rms.nsw.gov.au/roads/registration/fees/registrat… - Fuel Economy
a) Potentially looking to buy a hybrid here to reduce this cost. Further analysis below. - Insurance Costs
a) Will be looking to purchase comprehensive insurance - the cost of insurance here appears to vary wildly between makes, models and years
Estimated Annual Budget
- Depreciation - $1000-1700/year
a) Depreciating cost calculated between buy price and estimated final sale price (this will be estimated using Redbook on similar older models with some leniency)
b) Happy for it to be on the higher end if the car ticks more requirements above or has other driver experience enhancing features - Maintenance/Repairs - $200-500/year
a) Will be completing basic maintenance myself, cost here covers things like oil changes, tyres, batteries which generally have a span of 3-4 years, and various other components such as brake pads/discs, etc. - Registration - $310/year
a) Targeting for tare weight 1155-1504kg
b) Which car has the cheapest CTP? Any information here would be much appreciated - Fuel Economy - ~10L/100km Petrol or ~5L/100km Hybrid
a) Between a hybrid and a petrol car I would like to save approximately 5L/100km, if I'm completing about 7500km of driving at lets say $1.10/L, that would be $412.50/year of fuel economy savings
i) The risk I take with an older hybrid vehicle is the battery will die on me which is approximately $2-3K from my research. Is it worth the risk? - Insurance Costs - <$1000/year Comprehensive Insurance
i) Not sure which vehicle makes/models are cheaper to insure than others?
My current vehicle today is a 2009 Toyota Camry which I bought 3 years ago for $9000. Today (in normal times) it could probably sell for about $6000. All maintenance and repairs so far were basic and I completed it myself. Whilst it does meet everything in my financial budget (except fuel economy), the car is rather lacking when it comes to driver experience.
I am using Redbook as a general guide and I am assuming I will find something on the lower end of the private price guide (or potentially less) for that vehicle.
My current search has me looking at the following cars so far:
- 2016-2017 Mazda 3 SP25/GT/Astina BN Series
- 2012-2013 Lexus CT200h
Any help adding to the shortlist of cars, feedback, or funny Ozbargain jokes would be appreciated.
OzThesis?