There are plenty of SUVs on the market, but not all options are good financial decisions. Many factors were included when Kelley Blue Book calculated midsize SUVs that cost less than $25,000 out-of-pocket. How exactly does someone calculate the cost of a sports utility vehicle over five years? Read on to find the method.
The Subaru Outback is an SUV that costs less than $25,000 out of pocket
Kelley’s Blue Book You did the math, and the 2023 Subaru Outback adds up. Below are the numbers that add up to make the Outback a good buy. Fuel cost is estimated by the price to fill 15,000+ miles per year, and maintenance includes oil changes and other items to keep your midsize SUV running.
Insurance is the average cost to insure the vehicle in your state (with collision and liability), and repairs are based on an extended warranty with no deductible. That number and the rest will differ from person to person. Subaru’s 2023 Outback starts at $28,395 and goes up to $39,695.
|Depreciation (loss of value)||$12,028|
|Five Year Cost of Ownership||$33,547|
Financing, state fees (sales tax, license, registration) and depreciation were also taken into account. At the end of the day, the 2023 Subaru Outback had a best-in-class $33,547 five-year cost-of-ownership. Total out-of-pocket expenses were $21,519.
Mitsubishi’s Outlander is another SUV that costs less than $25,000 out of pocket
For the 2023 Mitsubishi Outlander, the five-year cost of ownership came out to $38,245. Over the five years, total out-of-pocket expenses were only $22,345 and depreciation was $15,900. That’s still a great deal for a new midsize SUV.
|Depreciation (loss of value)||$15,900|
|Five Year Cost of Ownership||$38,245|
Even if two vehicles have similar starting prices, it doesn’t mean the cost of ownership is identical. These calculations provide a reasonable estimate of what a midsize SUV might cost the average buyer. Priced between $23,595 and $39,995, the Outlander is worth a second look.
Look at the Hyundai Palisade as another good option
In the short list of SUVs that cost less than $25,000 out of pocket, the 2023 Hyundai Palisade is here to round out the entrants. It has a low estimated maintenance cost and repairs tend to be less expensive. Kelley Blue Book found that the Palisade used more gas than the other two midsize SUVs on the list.
|Depreciation (loss of value)||$13,936|
|Five Year Cost of Ownership||$38,780|
The 2023 Hyundai Palisade is priced between $32,250 and $49,200. With total out-of-pocket expenses coming in at $24,844, it slides just under budget. The five-year cost of ownership was $38,780, which is still pretty reasonable for a new vehicle.
While this math isn’t exact for everyone, it does offer a good place to start. Just because two vehicles have a similar MSRP doesn’t mean the cost of ownership is the same. These three midsize SUVs are less than $25,000 out-of-pocket, but there are no promises on those insurance costs if you have a lot of tickets.