The Top 15 Cheapest New Cars of 2012

There are a few changes in 2012 versus the 2011 cheapest new cars list. Most notably, Chevy retired the drab and tired Aveo and replaced it with the beefed-up Sonic, which comes in as the 6th least expensive new vehicle. The brand new Scion IQ displaces the Scion XB, and comes in as the 5th lowest cost car for the 2012 model year. And the Fiat 500 Pop makes the list, in its inaugural model year. J-Lo would be proud.

A few returnees boost better fuel efficiency this year, particularly the Kia and Hyundai models as they move to improved 1.6L 6-speed automatic transmissions. I decided to include engine specs this year if you’d like to make comparisons.

All of the vehicles you will find on the list have automatic transmission. Why? It’s hard to find, negotiate, and re-sell manuals. If you are interested in manuals, each model, excluding the Scion’s have them. They to run roughly $1,000 less than the MSRP’s I quoted, but their limited availability may prevent your ability to find and negotiate (if you have 25 vs. 2 to choose from on a lot and other dealers locally have the same numbers, your negotiating power goes up).

The Used Vs. New Debate

Before running out any buying a shiny new car, do your homework to make sure it is the best use of your money. Be honest with yourself in evaluating whether you in fact need a car in the first place, and if you have a significant other, whether you need a second car.

If you do need a car, new cars might not present the best value for you – although, this list is a good place to start for value. If you get a new car, baby it, and ride it until its death, it is possible to get a better return for your investment than buying used. However, keep in mind that new cars lose 11% of their value as soon as they are driven off the lot, on average.

Other Factors to Consider with a Cheap Car

Beyond the prices I’ve listed, there are some other considerations you should have when shopping for a new car:

• Fuel economy is important. A Scion IQ, for example, would save you over $400 every year in fuel costs vs. the new Chevy Sonic. My source for fuel costs is fueleconomy.gov, which used a $3.23 average per gallon with 45% highway, 55% city miles, and 15,000 annual miles.
• New models are unlikely to offer up big incentives until the end of their model year. It’d be wise to wait. I did not factor incentives in to the prices listed.
• Ongoing costs and insurance costs for cheap cars is generally lower, but you don’t want to sacrifice safety. Make sure a car you choose rates high on safety.

Foreign Automakers Still Own the Market for the Cheapest Vehicles

Foreign Automakers claim ownership of 13 of the 15 cheapest new cars. Only the new Chevy Sonic and last year’s new Ford Fiesta make the list from the U.S. automakers. Topping the list with the most models are Kia (3), Scion (2), Nissan (2),and Honda (2). Smart, Hyundai, Chevy, Ford, and Toyota are each represented by one model on the list.

My Picks for the Most Improved & Best Cheapest New Cars of 2012

The Soul, Fit, and Fiesta are still personal favorites for their functionality, styling, and price. However, I have to hand it to the Versa for being a solid car with improved fuel efficiency (25 mpg to 30 city, and 33 to 38 in the city) and still comfortably being the second cheapest.

The once-ugly Kia Rio is now rather stylish, is $495 cheaper than last year, and jumps from 27 to 30 mpg city and 36 to 40 highway. It gets my pick for having the best improvement from last year to 2012.

Without further ado, here are the 15 cheapest new cars of 2012 from #15 up to #1. What’s your favorite?

15. Honda Civic

Base Automatic Transmission model: Honda Civic DX, 2-door Sedan
Engine: 1.8L, 5-speed Auto Transmission, 16-valve, 4 cylinder, 140 HP
MSRP: $17,175
Dealer Cost: $15,728
City MPG: 28
Highway MPG: 39
Annual Fuel Cost: $1,514
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: The 2012 Civic is re-styled. With a $1,400 spread between MSRP and dealer cost, there may be room to negotiate.

14. Fiat 500

Base Automatic Transmission model: Fiat 500 Pop, 2-Door Hatchback
Engine: 1.4L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 101 HP
MSRP: $17,000
Dealer Cost: $15,905
City MPG: 27
Highway MPG: 34
Annual Fuel Cost: $1,785
Powertrain Warranty: 4 years or 50,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: As a guy, I hate to admit it (it’s definitely branded for the ladies), but this is kind of a cool car. Reminds me of the VW bug in appearances. The standard base model is pretty loaded in features. One disappointment? For a 1.4L, 6-speed, it gets very poor fuel economy.

13. Kia Forte

Base Automatic Transmission model: Kia Forte LX 4-Door Sedan
Engine: 2.0L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 156 HP
MSRP: $16,950
Dealer Cost: $15,644
City MPG: 29
Highway MPG: 36
Annual Fuel Cost: $1,671
Powertrain Warranty: 10 years or 100,000 miles
Limited Basic Warranty: 5 years or 60,000 miles
Notes: Similar to the Kia Rio, but with more engine and slightly lower fuel economy.

12. Scion XD

Base Automatic Transmission model: Scion XD 4-Door Hatchback
Engine: 1.8L, 4-speed Auto Transmission, 16-valve, 4 cylinder, 128 HP
MSRP: $16,875
Dealer Cost: $15,755
City MPG: 27
Highway MPG: 33
Annual Fuel Cost: $1,671
Powertrain Warranty: 5 years or 100,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: If Scion wants to remain competitive with other automakers, they will need to focus on fuel efficiency. A 4-speed auto transmission is behind the game.

11. Honda Fit

Base Automatic Transmission model: Honda Fit 4-Door Hatchback
Engine: 1.5L, 5-speed Auto Transmission, 16-valve, 4 cylinder, 117 HP
MSRP: $16,745
Dealer Cost: $16,022
City MPG: 28
Highway MPG: 35
Annual Fuel Cost: $1,563
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Great functionality. Only comes in a hatch (it runs on a Civic base).

10. Kia Soul

Base Automatic Transmission model: Kia Soul 4-Door Hatchback
Engine: 1.6L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 138 HP
MSRP: $16,450
Dealer Cost: $15,379
City MPG: 27
Highway MPG: 35
Annual Fuel Cost: $1,615
Powertrain Warranty: 10 years or 100,000 miles
Limited Basic Warranty: 5 years or 60,000 miles
Notes: 1.6L now available in 6-speed transmission, with better fuel economy.

9. Hyundai Accent

Base Automatic Transmission model: Hyundai Accent GLS, 4-Door Sedan
Engine: 1.6L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 138 HP
MSRP: $15,955
Dealer Cost: $15,239
City MPG: 30
Highway MPG: 40
Annual Fuel Cost: $1,468
Powertrain Warranty: 10 years or 100,000 miles
Limited Basic Warranty: 5 years or 60,000 miles
Notes: I have not been in this car, but it has a cult-like following. 40 mpg highway is impressive.

8. Mazda 2

Base Automatic Transmission model: Mazda 2 Sport 4-Door Hatchback
Engine: 1.5L, 4-speed Auto Transmission, 16-valve, 4 cylinder, 100 HP
MSRP: $15,775
Dealer Cost: $14,354
City MPG: 28
Highway MPG: 34
Annual Fuel Cost: $1,514
Powertrain Warranty: 5 years or 100,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Has 4-speed auto trans vs. its cousin Fiesta’s 6-speed, giving it lower fuel economy. It does, however, offer a better warranty than the Fiesta.

7. Toyota Yaris

Base Automatic Transmission model: Toyota Yaris 2-Door L (Liftback/Hatchback)
Engine: 1.5L, 4-Speed Auto Transmission, 16-valve, 4 cylinder, 106 HP
MSRP: $15,600
Dealer Cost: $15,033
City MPG: 30
Highway MPG: 35
Annual Fuel Cost: $1,514
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Solid car is now restyled. Like the Scion, it’d benefit with value seekers in a move from a 4 to 6-speed engine.

6. Chevy Sonic

Base Automatic Transmission model: Chevy Sonic 2 LS 4-Door Sedan
Engine: 1.8L, 6-speed Auto, 16-valve, 4 cylinder, 138 HP
MSRP: $15,565
Dealer Cost: $14,973
City MPG: 25
Highway MPG: 35
Annual Fuel Cost: $1,730
Powertrain Warranty: 5 years or 100,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: New model from Chevy that replaces the Chevy Aveo. Would love to see this in a 1.4L in future years for improved mpg’s. 25 city is low for a car of this size.

5. Scion IQ

Base Automatic Transmission model: Scion IQ 2-Door Hatchback
Engine: 1.3L, Continuously Variable Auto Transmission (CVT), 16-valve, 4 cylinder, 94 HP
MSRP: $15,265
Dealer Cost: $14,936
City MPG: 36
Highway MPG: 37
Annual Fuel Cost: $1,309
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: New model from Scion, the IQ launches in California now and Midwest in March. It has the highest city MPG of any non-hybrid. It doesn’t look to be much bigger than a Smart Car, but has a bulkier build with big wheels.

4. Kia Rio

Base Automatic Transmission model: Kia Rio LX 4-Door Sedan
Engine: 1.6L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 138 HP
MSRP: $15,250
Dealer Cost: $14,325
City MPG: 30
Highway MPG: 40
Annual Fuel Cost: $1,468
Powertrain Warranty: 10 years or 100,000 miles
Limited Basic Warranty: 5 years or 60,000 miles
Notes: $495 price decrease bumps it from #7 to #4 on the list. It also moves from 4 to 6-speed, bumping fuel economy from 36 to 40 on the highway. All of this, and its improved styling makes it the most improved car from 2011 to 2012.

3. Ford Fiesta

Base Automatic Transmission model: Ford Fiesta S Sedan, 4-Door
Engine: 1.6L, 6-speed Auto Transmission, 16-valve, 4 cylinder, 138 HP
MSRP: $15,090
Dealer Cost: $14,157
City MPG: 33
Highway MPG: 39
Annual Fuel Cost: $1,468
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Great car. But the bigger (and not much more expensive) Focus is worth a look.

2. Nissan Versa

Base Automatic Transmission model: Nissan Versa Sedan 1.6S, 4 Door
Engine: 1.6L, Continuously Variable Auto Transmission (CVT), 16-valve, 4 cylinder, 109 HP
MSRP: $13,520
Dealer Cost: $12,907
City MPG: 30
Highway MPG: 38
Annual Fuel Cost: $1,468
Powertrain Warranty: 5 years or 60,000 miles
Limited Basic Warranty: 3 years or 36,000 miles
Notes: Some nice improvements in 2012 versus 2011. MPG’s jump from 25 and 33 with the continuously variable transmission. With its price, it deserves a look.

1. Smart ForTwo Pure

Base Automatic Transmission model: Smart ForTwo Pure Coupe
Engine: 1.0L, 5-speed Auto Transmission, 12-valve, 3 cylinder, 70 HP
MSRP: $12,490
Dealer Cost: $11,991
City MPG: 33
Highway MPG: 41
Annual Fuel Cost: $1,458
Powertrain Warranty: 2 years or 24,000 miles
Limited Basic Warranty: 2 years or 24,000 miles
Notes: Good, but not ground-breaking mileage in a golf cart size, the worst warranty in the business, and a price that does not entirely set it apart from the competition? Other than being the cheapest car, it comes up a bit short.

Original Post 

http://20somethingfinance.com/cheapest-new-cars-of-2012/