Runzheimer Analyzes 2007 Car, Van and Light Truck Costs

September 30, 2006

The 2007 models of the Cadillac STS, Lincoln Town Car Signature, and Lexus GS 430 cost more than twice as much to own and operate annually than the Toyota Corolla, Honda Civic, and Chevrolet Cobalt according to the latest analysis by Runzheimer International, the Wisconsin-based management consulting and vehicle costing firm. Runzheimer’s study of selected 2007 models analyzed the total annual costs of 18 cars and 12 light trucks, vans, and sport utility vehicles.

Both the Cadillac STS and Lincoln Town Car sedans have a total annual cost of more than $17,000. This compares to a total annual cost of $7,847 for a Toyota Corolla CE (see Table 1). Other vehicles in the analysis with annual costs exceeding $12,000 include the Mercury Grand Marquis GS, Ford Crown Victoria LX, Chrysler 300 C, and Lexus LS 430. At the other end of the scale, cars with annual costs less than $8,700 include the Honda Civic and the Chevrolet Cobalt.

The Ford E350 topped the price list of specialty vehicles Runzheimer examined with $16,448 in annual costs, followed by the Chevrolet Tahoe at $15,120. If you want to spend less, select Ford Ranger or Chevrolet Equinox at $9,749 and $11,363, respectively (see Table 2).

"When you examine which vehicle to buy, it’s not enough to compare only sticker prices or even best negotiated deal,” notes Lee Czarapata, Director of Client Relations, Business Vehicle Services at Runzheimer International. “To gain a true understanding of how much a vehicle will cost over its life time, all of the expenses you incur once you drive off the lot–such as finance payments, insurance, fuel, depreciation, and cost of repairs and maintenance–should be part of your equation.”

Table 1: PROJECTED OWNERSHIP AND OPERATING COST
              FOR SELECTED 2007 MODEL CARS*

Table 2: PROJECTED OWNERSHIP AND OPERATING COST
              FOR SELECTED 2007 MODEL LIGHT TRUCKS, VANS, AND SUVs*

* All U. S. four door vehicles, trucks and sport utilities are equipped, if available, with auto transmission w/overdrive, air conditioning, AM/FM radio with cassette or CD, speed control, rear window defogger, tilt steering wheel, and anti-lock brakes.

Note: Costs include operating expenses (fuel, oil, maintenance and tires) and fixed expenses (insurance, depreciation, financing, taxes and licensing) based upon a 36 month/60,000 mile retention cycle.

Cost Comparisons to Prior Year

As indicated in Table 3, total projected ownership & operating costs declined from the previous year.  This results primarily from lower fuel prices in 2007, which are approximately 35-40 cents less than during the same time period last year.  Additionally, the fixed costs of some vehicles also declined due to vehicle pricing changes.

Table 3:  PROJECTED OWNERSHIP & OPERATING COST COMPARISONS: SELECTED VEHICLES

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About Runzheimer International
Founded in 1933, Runzheimer International serves 60 percent of the Fortune 500. Recognized for providing innovative solutions relating to total employee mobility, Runzheimer is the global leader in business vehicle reimbursement programs, travel management consulting, employee relocation and compensation, virtual offices, and corporate aircraft.

For more information, contact Luella Dooley at Runzheimer International, Runzheimer Park, Rochester, Wisconsin 53167, (262)971-2277, ljd@runzheimer.com, www.runzheimer.com.