The 2022 MG3 is the cheapest car to buy and run, according to RACV

The RACV’s calculation takes into account running costs as well as purchase costs, so the MG3 is off to a strong start with its affordable entry price that accounts for around 80 per cent of the total cost.

The annual survey carried out by the Royal Automobile Club of Victoria (RACV) ranked 80 models, finding the 2022 MG3 Core ($18,990 driveaway) as the cheapest car to buy, own and run over a five-year period in Victoria.

RACV’s survey takes into account the purchase of a new car with a loan, servicing, replacement items such as tyres, fuel economy and club membership over a typical 15,000km annual distance.

Taking all factors into account, RACV found the MG 3 would cost $734.84 per month over five years, closely followed by the Kia Picanto S ($746.34) and a little further back, the Suzuki Baleno GL ($804.87).

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What about cars for the family?

The most popular category in Australia, the midsize SUV, was led by the Toyota RAV4 GXL 2.0-litre petrol ($1245.08), with 4×2 utes crowned by the Mitsubishi Triton GLX 2.4 auto ($1419.23) and 4×4 utes the GWM Cannon ($1451.05)

MG managed to sneak a second vehicle into the 11-car list with the MG ZS electric, the most affordable EV at $1109.49 per month.

JUMP AHEAD: The 11 most affordable vehicles to own in each category

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Owning a car is getting more expensive

“It would surprise no one to see that the cost of owning and operating a car has risen, given the trends we have seen in fuel prices,” said RACV head of policy, James Williams.

RACV’s calculation takes into account running costs as well as purchase costs, so the MG3 is off to a strong start with its affordable entry price that accounts for around 80 per cent of the total cost.

But the MG3 has still been subjected to price rises, as with the rest of the industry – and the wider economy in general.

RACV showed how much more expensive the MG3 has become, with this year’s monthly total up 17.5 per cent compared to last year’s $625.50 monthly cost.

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Another big factor is fuel cost, which RACV found to account for around 13 per cent of total ownership costs over five years.

Despite the huge jump in fuel prices, RACV found that petrol-only cars are still more affordable over five years than hybrids where they’re offered, for example with the Corolla, Camry and RAV4.

With the fuel excise reinstated at full whack federally, prices across the country are climbing. Factors like servicing, insurance and registration remain fairly consistent for ICE cars, however.

With rising costs of new cars, the second hand market is also climbing. It’s for this reason Mr Williams suggested looking at new vehicles in spite of higher purchase prices.

“When you factor in the growing price of used cars and the improved fuel efficiency and safety ratings of new cars, there is a very good argument to take a close look at the more affordable models outlined in the survey,” he said.

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RACV’s cheapest cars by category