Awards honor lowest cost to own, beyond initial sticker price

When purchasing a new car, many people conduct research and consider the up-front expense.

But what about ongoing costs such as fuel, maintenance, insurance and vehicle depreciation? Those can vary greatly from one model to the next, according to Kelley Blue Book.

With that in mind, Kelley Blue Book’s experts named the 2021 model-year brand and category winners of the 10th annual 5-Year Cost to Own Awards.

The awards recognize new vehicles with the lowest projected ownership costs over the initial five-year ownership period, and the top 5-Year Cost to Own Brand for 2021 is Toyota.

Lexus, Toyota's luxury sibling, won the award for top 5-Year Cost to Own Luxury Brand. Several Lexus models led in many vehicle ownership cost categories.

“Toyota wins the top 5-Year Cost to Own Brand for 2021, hot on the heels of its award for 2021 Best Resale Value Brand,” Kelley Blue Book director of residual values, Eric Ibara said in a news release.

Ibara also said, “Toyota’s high residual values were the primary contributor toward the brand’s low ownership costs, given that high residual values directly correlate to lower vehicle depreciation.”

The 5-Year Cost to Own information is available for new models on Kelley Blue Book's KBB.com. It considers depreciation, expected fuel costs, finance and insurance fees, maintenance and repair costs, and state fees. Kelley Blue Book said the data can help new-car shoppers see the big picture of what a new vehicle will cost them over time.

That can help them save money by choosing a vehicle that best meets their needs and their long-term budget, Kelley Blue Book said.

Kelley Blue Book developed the 5-Year Cost to Own information using Kelley Blue Book Residual Values to calculate depreciation costs. Kelley Blue Book calculates total ownership costs for new vehicles by applying a valuation methodology along with financial data from third-party providers.

Cost to own awards, by vehicle category

Chart source: Kelley Blue Book