Total five-year ownership cost for a mainstream new car in the US typically runs $35,000-$55,000 all-in (depreciation, financing, insurance, fuel/energy, maintenance and repairs, and fees), with depreciation alone often accounting for 40-50% of that total. The cheapest cars to own over five years are usually not the cheapest to buy — compact and midsize models from brands with strong resale value, low insurance costs, and inexpensive routine maintenance frequently beat lower-sticker-price rivals that depreciate faster or cost more to insure and service.
At a glance
| Cost category | Typical share of 5-year total |
|---|---|
| Depreciation | 40-50% |
| Fuel or electricity | 10-15% |
| Insurance | 10-15% |
| Maintenance and repairs | 8-12% |
| Financing, fees and taxes | Remainder, varies by loan terms |
Why sticker price is a poor predictor of total cost
Two vehicles with nearly identical purchase prices can differ by thousands of dollars in five-year total cost once depreciation, insurance and maintenance are factored in. This is the core reason cost-of-ownership calculators exist and why buyers focused only on the sticker price or monthly payment often end up surprised by how differently two seemingly comparable vehicles perform financially over time.
Depreciation: the single biggest line item
Depreciation — the drop in resale value over time — is consistently the largest component of ownership cost, often outweighing fuel and maintenance combined. Vehicles with strong reputations for reliability and consistent demand in the used market tend to hold value better, while models with a history of reliability issues, unusual styling, or oversupply in a segment tend to depreciate faster, directly increasing effective ownership cost even if nothing goes wrong mechanically.
Fuel, electricity, and the ongoing cost gap
For gas vehicles, fuel efficiency differences of even a few miles per gallon compound meaningfully over 60,000-75,000 miles of five-year driving. EVs generally cost less per mile to "fuel" via home charging compared to gasoline, though public fast-charging can narrow or erase that gap depending on how much of a driver's charging happens at home versus on the road.
Maintenance and repair cost differences
Routine maintenance costs (oil changes, brake service, tires) vary meaningfully by brand and model, driven by parts pricing, service intervals, and labor complexity. Some mainstream brands are known for notably lower routine service costs due to simpler mechanical designs and widely available parts, while others — particularly some European and luxury brands — carry a reputation for higher routine and repair costs even on comparably priced vehicles.
| Cost driver | Cheaper end of the range | More expensive end of the range |
|---|---|---|
| Depreciation | Strong-resale mainstream models | Fast-depreciating or oversupplied segments |
| Insurance | Low-horsepower, high-safety-rating models | High-horsepower or high-theft-rate models |
| Maintenance | Simple mechanical design, common parts | Complex systems, specialty parts |
Using a real cost-of-ownership tool
Several major automotive research sites publish five-year cost-to-own estimates broken down by category for specific models, which is a far more reliable comparison method than eyeballing a sticker price or a single fuel-economy number. When comparing two specific vehicles, look at the full breakdown rather than any single category, since a model can look cheap on fuel but expensive overall due to fast depreciation or high insurance.
A low advertised monthly payment can mask a longer loan term or a vehicle with poor resale value — always look at total five-year cost, not just the monthly figure, before comparing options.
Frequently asked questions
What's the biggest factor in a car's total ownership cost?
Are EVs cheaper to own over five years than gas cars?
Do cheaper cars to buy always cost less to own over five years?
How much does insurance factor into total ownership cost?
Where can I find reliable five-year cost-of-ownership estimates?
Sources & further reading
Figures, prices and policy details were current at the last-updated date above. Automotive pricing, incentives and regulations change frequently — verify time-sensitive details with the linked primary sources. Read our editorial policy and fact-checking standards.
