Best Value Car in Australia
So there we have it, after weeks of research and thousands of calculations our winners have emerged. And in a room full of standouts, it’s the MG3 Vibe that stands tallest of all with a five-year ownership cost of $29,952.
Notably, while we put over 120 different models through our ‘ownership index’ calculation, the little MG was the only contender to dip below the $30,000 mark (just). Other contenders bettered the MG3 for insurance premiums and fuel bills, but they couldn’t match its strong showing across the full sweep of ownership costs.
The one chink in its armour is an ANCAP safety rating of only four stars, one star better than its previous model but still not ideal if safety is your priority.
It’s also worth remembering every result on the preceding pages is a snapshot in time. Few markets are as complex, competitive or as changeable as the Aussie new car market and, while our figures were accurate at the time of publishing, new drive-away deals, fresh contenders and the volatile prices of fuel and electricity can quickly change things. Still, there are some universal truths to take away.
Depreciation is the cost most buyers overlook
While purchase price is the figure most of us fixate on, the biggest cost of owning a new car is depreciation. In almost every case, depreciation accounts for 40-50 per cent of the total five-year ownership cost. It’s a sobering statistic, especially considering our recent survey of over 2200 NRMA members showed only 22 per cent consider depreciation when purchasing a new car.
EVs deliver big savings – with some catches
The ownership benefits of electric vehicles is another standout, with EVs costing less to service and fill with electrons. Electricity costs were consistently between
$2400-$3000 over five years, whereas most petrol cars spend $6000-$10,000 and a large SUV or ute can use as much as $15,000! That’s a huge saving, although EVs do suffer from higher purchase prices, larger insurance premiums, heavy depreciation, and costlier tyres.
Servicing isn’t the big expense you might expect
Intriguingly, one ongoing cost that isn’t as impactful as many might think is servicing. While there are some costly outliers (we’re looking at you Toyota HiLux), the introduction of capped price servicing means a typical servicing total is between $1000-$3000 over five years. That’s still substantial but nowhere near as hefty as depreciation or insurance premiums, with the latter requiring between $7000 and $14,000.
If there’s one takeaway, however, we hope it’s that the cheapest car to buy is rarely the cheapest car to own. Genuine value lies in how often a car reaches into your pocket across the ownership period. And as the data shows, some raid your wallet more than others.
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