Why a preowned 4Runner beats a new hybrid in total cost of ownership.
Today I was calcuating if buying a preowned 4Runner would be a better choice over a new hybrid vehicle in total cost of ownership. I’m right now in the process of potentially buying a preowned 4Runner, and I wanted to make sure it was the best decision in all aspects.
One aspect of the 4Runner that worried me is the low fuel economy. However after doing the math, my decision is clear. For those who read my original purchase thread, I used a higher price in this calculation than what I'm buying mine for, in case I wish to do upgrades.
My criteria included the following: A new vehicle for comparison had to be an SUV, 40-50+ MPG, Hybrid (electric + gas), a good warrantee (replacement batteries can be expensive), and very important stylish, affordable price ($20K-$30K).
This took me to the 2017 Kia Niro. The base FE provides 50 MPG, and warrantee is 10 years / 100K miles. The following base/average figures are what I used:
4th generation 4Runner, preowned
Average price $16,000
Low average MPG – 15 MPG
2017 Kia Niro FE Hybrid SUV
Build price (kia.com) $25,000
Low average MPG – 50 MPG
I average about 6,000 miles a year. Short commuting and one trip per year in the summer. So, I used this for the figures. I used $3.50 per gallon as the average/high price of gasoline. I didn't caclulate maintenance costs like brakes, tires, belts, hoses, oil changes etc., I figure those to be the same for both.
Niro:
6,000 / 50 = 120 gallons of fuel annually
120 gallons x $3.50 = $420 in fuel cost annually
4Runner
6,000 / 15 = 400 gallons of fuel annually
$420 gallons x $3.50 = $1,400 in fuel cost annually
Annual fuel savings owning the Niro = $980
Price difference between 4Runner & Niro = $9,000
Purchasing the Niro, I'd save $980 year on fuel, but the Niro cost $9,000 more. $980 / $9,000 = 9.1 years. It would take me 9.1 years to break even buying the Niro versus a preowned 4Runner. However, I'd probably want to trade in the Niro at that point because it’s nearing the end of its 10-year warrantee, and I would not want to be stuck with the high price to replace a battery. In addition, I would not have any towing capacity, or off-road ability with the Niro.
The only aspect that would change this calculation is if the 4Runner had a major mechanical issue during the 9.1 years driving up the total cost of ownership. Given the 4Runner’s impressive reliability history, this is most likely not going to occur.
Don’t get me wrong, I’m not knocking hybrid vehicles. I believe hybrids and then 100% electrics will be the ultimate future. The Niro seems impressive. However, after doing the calculations, it really isn’t that financially better than a preowned 4runner in the long run.
Today I was calcuating if buying a preowned 4Runner would be a better choice over a new hybrid vehicle in total cost of ownership. I’m right now in the process of potentially buying a preowned 4Runner, and I wanted to make sure it was the best decision in all aspects.
One aspect of the 4Runner that worried me is the low fuel economy. However after doing the math, my decision is clear. For those who read my original purchase thread, I used a higher price in this calculation than what I'm buying mine for, in case I wish to do upgrades.
My criteria included the following: A new vehicle for comparison had to be an SUV, 40-50+ MPG, Hybrid (electric + gas), a good warrantee (replacement batteries can be expensive), and very important stylish, affordable price ($20K-$30K).
This took me to the 2017 Kia Niro. The base FE provides 50 MPG, and warrantee is 10 years / 100K miles. The following base/average figures are what I used:
4th generation 4Runner, preowned
Average price $16,000
Low average MPG – 15 MPG
2017 Kia Niro FE Hybrid SUV
Build price (kia.com) $25,000
Low average MPG – 50 MPG
I average about 6,000 miles a year. Short commuting and one trip per year in the summer. So, I used this for the figures. I used $3.50 per gallon as the average/high price of gasoline. I didn't caclulate maintenance costs like brakes, tires, belts, hoses, oil changes etc., I figure those to be the same for both.
Niro:
6,000 / 50 = 120 gallons of fuel annually
120 gallons x $3.50 = $420 in fuel cost annually
4Runner
6,000 / 15 = 400 gallons of fuel annually
$420 gallons x $3.50 = $1,400 in fuel cost annually
Annual fuel savings owning the Niro = $980
Price difference between 4Runner & Niro = $9,000
Purchasing the Niro, I'd save $980 year on fuel, but the Niro cost $9,000 more. $980 / $9,000 = 9.1 years. It would take me 9.1 years to break even buying the Niro versus a preowned 4Runner. However, I'd probably want to trade in the Niro at that point because it’s nearing the end of its 10-year warrantee, and I would not want to be stuck with the high price to replace a battery. In addition, I would not have any towing capacity, or off-road ability with the Niro.
The only aspect that would change this calculation is if the 4Runner had a major mechanical issue during the 9.1 years driving up the total cost of ownership. Given the 4Runner’s impressive reliability history, this is most likely not going to occur.
Don’t get me wrong, I’m not knocking hybrid vehicles. I believe hybrids and then 100% electrics will be the ultimate future. The Niro seems impressive. However, after doing the calculations, it really isn’t that financially better than a preowned 4runner in the long run.
Last edited:
