Buying a new vehicle is one of the biggest purchases you can make and your West Michigan Honda Dealers want to help you make an informed decision. If you’re in the market for a crossover SUV, you have probably researched the segment’s top models like the 2018 Chevrolet Equinox, 2018 Ford Escape, 2018 Kia Sportage, 2018 Nissan Rogue, 2018 Toyota RAV4, and of course, the award-winning 2018 Honda CR-V. With so many great options to choose from, why should car buyers put the 2018 CR-V at the top of their lists?
When most car shoppers set out to buy a new automobile, it’s safe to say their primary concern is the sticker price. However, since your vehicle is a long-term investment, it’s important to look beyond the MSRP and calculate the cost to own. So what does “cost to own” actually mean? A simple formula can determine the true value of a vehicle: depreciation + out of pocket expenses = your cost to own.
Naturally, there is some overlap between depreciation and out of pocket expenses, but the bulleted items above are the main factors used to calculate a vehicle’s residual value—other variables like comfort, equipment, and tech features will come into play as well. Join us as we explore depreciation forecasts, the types of out of pocket expenses, and how the 2018 Honda CR-V LX FWD costs less to own over a five-year time period than any other small SUV in its class.
For almost 50 years, ALG has been the industry standard for successfully predicting residual value that is relied upon by auto manufacturers and lending institutions throughout the United States and Canada. After comparing the most popular crossover SUVs on the market, ALG depreciation forecasts for April 2018 show the Honda CR-V LX retains the highest percentage of MSRP after both 36 and 60 months.^
Estimating your out of pocket expenses is a crucial part of determining the cost to own—just remember, where you live will influence everything from gas prices and car insurance to auto financing rates and vehicle registration fees.
Great fuel economy is a must for today’s modern driver; however, car shoppers will often times sacrifice power for efficiency. Luckily, the 2018 Honda CR-V LX FWD not only produces up to 184 horsepower and 180 lb-ft of torque, but it also achieves an impressive, EPA-estimated 26 mpg city and 32 mpg highway.1
In September of 2017, Clark.com (a byproduct of Clark Howard and his consumer advocacy efforts) shared data from YourMechanic.com that listed the most and least expensive vehicles to maintain. Based on estimates of total maintenance over a 10-year time period, Honda was ranked 27th out of 30 brands. Notably, Ford, Kia, Chevrolet, Subaru, and Hyundai were more costly to maintain, all ranking in the top 20.
Unexpected car expenses are never fun, and major automotive repairs can have an adverse effect on your vehicle’s residual value. Recent results from CarMD’s 2017 Vehicle Health Index show Acura to be the least likely to require an “engine repair check” over the past year, while Honda and Toyota rounded out the top three, respectively.
Premiums can vary for many different reasons, but one undeniable truth is insurance companies love safe vehicles. Thanks to intelligent engineering and progressive technologies, the 2018 Honda CR-V LX FWD earned a 5-Star Overall Safety Rating from the National Highway Traffic Safety Administration (NHTSA),2 leaving competitors like the 2018 Chevrolet Equinox, 2018 Jeep Cherokee, and 2018 Nissan Rogue in the dust.
State fees include license, registration, and a state’s sales tax. When it comes to registration, some states assess a flat fee, while others use metrics such as fuel economy, the vehicle’s age, or the gross weight of the automobile. If you are unfamiliar with the criteria used by your state to calculate registration fees, visit the National Conference of State Legislatures (NCSL) to learn more.
Assuming 15,000 miles per year and 3.19% APR with a 10% down payment, the 2018 Honda CR-V LX FWD topped all compact SUVs for the lowest 5-year cost to own. Using the formula of depreciation + out of pocket expenses, the 2018 CR-V LX had a best in class 5-year cost to own, edging out the 2018 Subaru Crosstrek, 2018 Ford Escape, 2018 Toyota RAV4, and other sought after brands.
The bottom line: knowing the cost to own before you buy will help save you money in the long run. With an outstanding residual value after both three and five years, and less overall out of pocket expenses than its crossover competitors, the 2018 Honda CR-V is a smart investment. Visit any West Michigan Honda Dealers location today to explore the four different trim levels, learn about current incentives, and test drive Motor Trend’s 2018 SUV of the Year, the 2018 Honda CR-V.